The international market of crude oil seems to be seeing a downtrend again. In particular, Brent oil dropped by $32,77/b earlier today. This is a 2,3% decline relative to the previous close. As for WTI oil, it also dropped, this time by nearly 2% down to $32,52/b. In general, the current state of affairs in the global market of crude oil looks fairly logical. The thing is that the beginning of 2016 is associated with lower oil prices as well as a stock market crash.
Last week, crude oil already made an attempt to get closer to $30/b. We should keep in mind that the prices already managed to set new 12-year lows. Along with this, major American, European and Asian markets lost 6% to 14% at the same time. This is happening amid expectations of another major slowdown in the global economy. Masterforex-V Academy reports that the overall pessimism is aggravated by the People’s Bank of China. The Chinese central bank is currently doing its best to prevent the national economy from going further down while sacrificing the national currency, which is still losing its value against the American Dollar.
Apparently, gloomy economic expectations don’t favor investment activities around the globe. Last Wednesday, the International Monetary Fund released its 2016 forecast, which says that the global economy is expected to gain just 2,9% instead of 3,3% expected previously. The IMF says that emerging markets are going to be the biggest deterrent to the global economic growth this year. The thing is that the emerging markets are expected to gain just 4,8% on average which is insufficient for more positive expectations.
All in all, the international community is concerned about the economic prospect of China, the world’s second largest economy. The thing is that China’s major stock indexes are still going down strongly. Some of them have already lost over 10%, including SSE Composite. Russia might have shown the same tendency but for the fact that Russian market were open only for 3 days. That is why market participants say that the Russian market is yet going to crash today on in the next couple of days. The same holds true for the currency market.
