Tallahassee Journal

Stocks fall as oil prices tumble another 4%

Stocks fall as oil prices tumble another 4%

Stocks tumbled for a second straight day Monday as oil prices continued to fall further, dropping more than 4% to about $46 a barrel. The Dow Jones industrial average was down 0.5% and the Standard & Poor’s 500 index dropped 0.7%. The Nasdaq composite index fell 0.8%.the-percentage-of-americans-playing-the-stock-market-is-at-an-all-time-low

Oil s down about 45% in the past three months as it slid another $1.99 to $46.35 per barrel and briefly went below $46. In a note to clients, Goldman Sachs slashed its price forecasts for the coming two years. It said the benchmark New York rate would average $50.40 a barrel this year, way down on its previous forecast of $83.75. It also cut its Brent forecast to $70 a barrel from $90. In response, oil prices fell further, with the New York rate down 2.4 percent at $47.20 a barrel, while Brent slid 3 percent to $48.62.

“If lower oil prices owe to a surge in supply, that would be the end of it and the global economy would be so much the better off in the end,” said DBS Group in a report. “But if prices are down because of weak demand instead, all bets are off. Economies, including the U.S., would be no better off.”

Asian stock markets were mixed. Japan’s Nikkei 225 rose 0.2% to 17,197.73 and Hong Kong’s Hang Seng index jumped 0.5% to 24,026.46. But China’s Shanghai Composite index dropped 1.7 % to 3229.32 and Seoul’s Kospi fell 0.2% to 1,920.95. European shares traded higher as Germany’s DAX jumped 1.4% and the CAC 40 in France gained 1.2%. Britain’s FTSE was flat.