Asian and European shares tumble on lower oil as the global selloff continues. The Nikkei, dragged by the energy sector, slid -3.02% on a stronger Yen (118.77) and record-low bond yields (0.28%). The fall in oil prices, which now dipped below $50, continue to fuel the selloff following reports showing higher production levels in Russia, Iraq and Canada; all battling to retain market share. By contrast, gold prices rose for the third day in a row and currently trade at $1208.40 per ounce.

US Market

Following the biggest drop in three months, US markets await news from the ISM non-manufacturing report while the FOMC gathers for the first meeting of the year.


The yuan advanced by 0.11% as a result of the Chinese Government fast-tracking 1.1 trillion dollars’ worth of infrastructure projects. This is believed to be one of the measures taken by Chinese government to stimulate the slowing economy.

Gold continued its climb for a third day, due to the uncertainty in Greece, causing investors to seek a relatively independent haven amid increased risk-aversion.

Credit risk in Russia rose to a 6 year high, leading to concerns over its ability to fulfil its budget commitments and its debt status being downgraded to junk.