Saturday, 12 December 2015

Markets tumble as hits keep coming with no where to hide

Markets fell sharply on Friday.

Oil continued its relentless decline. Brent plunged 4.5 percent to its lowest level since 2008. West Texas Intermediate fell 3.1 percent.

"The hits keep on coming," said John Kilduff, a partner at hedge fund Again Capital. "There’s no end in sight for the global glut."

And the hits to oil pushed stocks sharply lower on Friday. The S&P 500 fell 1.9 percent, the STOXX Europe 600 tumbled 2.0 percent and the MSCI Emerging Markets Index plunged 2.2 percent.

The iShares iBoxx $ High Yield Corporate Bond exchange-traded fund tumbled 2.7 percent. “The meltdown in High Yield is just beginning," wrote billionaire investor Carl Icahn.

Indeed, Kevin Kelly, chief investment officer at Recon Capital Partners, told Bloomberg: “There’s no where to hide”.

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