World stocks sank
to their lowest levels since 2013 on Wednesday, hit by another tumble
in oil to 13-year lows that kept global equities set for one of their
worst monthly performances ever.
The
MSCI World equity index fell 1.3 percent to its lowest level since July
2013, and the index's fall so far in January is already 9.9 percent,
the biggest drop since 2009.
There have been steeper monthly drops only six times in the index's 28-year history, three of which occurred during the financial crisis of 2008/2009
"I am quite pessimistic about the equity markets for the next two to three months. I do not see a 2008-style scenario, but I do see a bear market coming," said Andreas Clenow, hedge fund trader and principal at ACIES Asset Management, suggesting a further 10 percent fall to come.
U.S. crude wallowed at its lowest since 2003 after the world's energy watchdog warned the market could "drown in oversupply". U.S. futures shed 2.9 percent to $27.63 while Brent crude lost 2.1 percent, having slipped below $28 earlier in the session.
European shares touched their lowest level since October 2014, following losses in U.S and Asian stock markets as the relentless slump in oil prices continued to drag on risk assets.
The FTSEurofirst 300 fell 2.8 percent, set for its biggest single session loss of an already turbulent 2016.
Germany's DAX, France's CAC and Britain's FTSE were all down around 3 percent and also set for their biggest fall of the year so far.
Oil shares in Europe are down 13 percent already this year, also at their lowest levels since 2003. That has been a major weight on the FTSEurofirst 300, which is down around 10 percent in 2016, which investors see as "correction" territory.
U.S. stock futures were down 1.8 percent on Wednesday ahead of the open, after Wall Street had seen its early gains on Tuesday erased by the tumble in U.S. crude.
There have been steeper monthly drops only six times in the index's 28-year history, three of which occurred during the financial crisis of 2008/2009
"I am quite pessimistic about the equity markets for the next two to three months. I do not see a 2008-style scenario, but I do see a bear market coming," said Andreas Clenow, hedge fund trader and principal at ACIES Asset Management, suggesting a further 10 percent fall to come.
U.S. crude wallowed at its lowest since 2003 after the world's energy watchdog warned the market could "drown in oversupply". U.S. futures shed 2.9 percent to $27.63 while Brent crude lost 2.1 percent, having slipped below $28 earlier in the session.
European shares touched their lowest level since October 2014, following losses in U.S and Asian stock markets as the relentless slump in oil prices continued to drag on risk assets.
The FTSEurofirst 300 fell 2.8 percent, set for its biggest single session loss of an already turbulent 2016.
Germany's DAX, France's CAC and Britain's FTSE were all down around 3 percent and also set for their biggest fall of the year so far.
Oil shares in Europe are down 13 percent already this year, also at their lowest levels since 2003. That has been a major weight on the FTSEurofirst 300, which is down around 10 percent in 2016, which investors see as "correction" territory.
U.S. stock futures were down 1.8 percent on Wednesday ahead of the open, after Wall Street had seen its early gains on Tuesday erased by the tumble in U.S. crude.
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