Global stocks slide on discord in Doha

AFP, LONDON: World equity markets slid yesterday with the energy sector taking a tumble, as oil prices tanked following the collapse of weekend output talks in Doha.
"Discord in Doha has left oil prices weaker and has prompted a drop across European equity markets," said CMC Markets analyst Jasper Lawler.
Frankfurt, London and Paris all shed more than 1.0 per cent in opening deals, but later tempered their losses.
In Asia, Hong Kong ended 0.7 per cent lower, Shanghai closed down 1.4 per cent, Seoul sank 0.3 per cent and Singapore slipped 0.7 per cent.
Russia's stock markets tumbled as the Doha news appeared to spell more trouble for the country's energy-reliant economy. Moscow's RTS index was down over four per cent in early trade before recovering slightly.
Oil prices plunged after top producers failed to reach a weekend deal in the Qatari capital to cap output, fanning fresh fears over a supply glut that has plagued the market.
The latest heavy oil-price falls sent shock waves through the global energy sector because lower oil prices bite into its revenues and profits.
"Equities and oil have more or less traded in lockstep in 2016, so the failure of Doha talks at the weekend and the resulting weakness in the price of oil are unlikely to be taken well by the market as a new week of trading begins," said Russ Mould, investment director at brokerage AJ Bell.
"BP and Shell were early and inevitable casualties as investors reacted to the fall in oil prices."
In London, BP's share price slid 1.15 per cent to 351.85 pence in midday trade, while Royal Dutch Shell's 'A' stock was down 1.65 per cent at 1,784 pence.
In Paris, French oil and gas giant Total topped the fallers board, dropping 1.72 per cent to stand at 41.82 euros.
Discussions in the Qatari capital floundered on Sunday, with OPEC kingpin Saudi Arabia insisting it would not agree to freeze production without the participation of fellow cartel member Iran -- which boycotted the talks.
Rebecca O'Keefe, head of investment at Interactive Investor, warned that the Doha disappointment represented a major "risk" for equity investors.
"OPEC's failure to come to an agreement on limiting output is a significant risk for both the oil market and equities, given the high positive correlation that currently exists between oil prices and global equity markets," she told AFP.

Global stocks slide on discord in Doha

AFP, LONDON: World equity markets slid yesterday with the energy sector taking a tumble, as oil prices tanked following the collapse of weekend output talks in Doha. Discord in Doha has left oil prices weaker and has prompted a drop across European equity markets, said CMC Markets analyst Jasper Lawler. Frankfurt, London and Paris all shed more than 1.0 per cent in opening deals, but later tempered their losses. In Asia, Hong Kong ended 0.7 per cent lower, Shanghai closed down 1.4 per cent, Seoul sank 0.3 per cent and Singapore slipped 0.7 per cent. Russias stock markets tumbled as the Doha news appeared to spell more trouble for the countrys energy-reliant economy. Moscows RTS index was down over four per cent in early trade before recovering slightly. Oil prices plunged after top producers failed to reach a weekend deal in the Qatari capital to cap output, fanning fresh fears over a supply glut that has plagued the market. The latest heavy oil-price falls sent shock waves through the global energy sector because lower oil prices bite into its revenues and profits. Equities and oil have more or less traded in lockstep in 2016, so the failure of Doha talks at the weekend and the resulting weakness in the price of oil are unlikely to be taken well by the market as a new week of trading begins, said Russ Mould, investment director at brokerage AJ Bell. BP and Shell were early and inevitable casualties as investors reacted to the fall in oil prices. In London, BPs share price slid 1.15 per cent to 351.85 pence in midday trade, while Royal Dutch Shells A stock was down 1.65 per cent at 1,784 pence. In Paris, French oil and gas giant Total topped the fallers board, dropping 1.72 per cent to stand at 41.82 euros. Discussions in the Qatari capital floundered on Sunday, with OPEC kingpin Saudi Arabia insisting it would not agree to freeze production without the participation of fellow cartel member Iran -- which boycotted the talks. Rebecca OKeefe, head of investment at Interactive Investor, warned that the Doha disappointment represented a major risk for equity investors. OPECs failure to come to an agreement on limiting output is a significant risk for both the oil market and equities, given the high positive correlation that currently exists between oil prices and global equity markets, she told AFP.