Premarket: Oil soars after Saudi supply shock, stocks slide

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Premarket: Oil soars after Saudi supply shock, stocks slide GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.Oil prices climbed to four-month highs on Monday and world stocks slid after weekend attacks on crude facilities in Saudi Arabia shut about 5% of the world’s supply and fuelled worries over the impact of an oil shock on economic growth.

World stocks halted a four day winning streak and were down 0.16%. European shares fell 0.55% and Wall Street signalled a weak start, too, with E-Mini futures for the S&P 500 off 0.34%. Data from China further underscored worries about the slowdown in the world’s No. 2 economy. Industrial production grew at its weakest pace in 17-1/2 years amid rising U.S. trade pressure and softening domestic demand.

The U.S. Federal Reserve is due to hold its policy meeting on Wednesday, at which it is widely expected to ease interest rates and signal its future policy path.Dollar-denominated bonds issued by Saudi Arabia’s government and state-oil firm Saudi Aramco tumbled to multi-week following the attacks.Saudi Aramco’s longer-dated bonds bore the brunt of the falls with the 2049 issue dropping nearly 3 cents in the dollar to touch their lowest since early August, data from Tradeweb showed.

 

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