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Oil rattles markets, despite Draghi

Monday, December 14, 2015 - 01:41

Tumbling oil prices pulled European shares lower on Monday, though Mario Draghi sees inflation returning to target ''without undue delay''. And, as Grace Pascoe reports, the Fed looms large.

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The oil sell-off continues to push European markets lower. Brent crude sank to below 37 dollars a barrel for the first time since December 2008 Dropping near 11-year lows as the glut worsens. Matthew Beesley is from Henderson Global Investors. (SOUNDBITE) (English) HENDERSON GLOBAL INVESTORS, HEAD OF GLOBAL EQUITIES, MATTHEW BEESLEY, SAYING: "Markets have certainly had a lot to digest in the last week or two and this week of course we have the likely raising of interest rates in the U.S.. ... Rather than focusing perhaps on Europe or the yuan or oil, we would more suggest that there is a period now with liquidity low, markets movements are likely to be quite violent and potentially quite volatile given the interest rate rise that we are all expecting this week and the important commentary that will accompany that rise." There is some European data to smile about. Euro zone industry output beat expectations growing 0.6 percent month-on-month in October, Italy's November EU-harmonised CPI has also been revised up to plus 0.2 percent year on year. And Mario Draghi says the ECB should reach its inflation target "without undue delay" after last month's easing. Though Germany's Angela Merkel told her party faithful that all was not well yet. (SOUNDBITE) (German) GERMAN CHANCELLOR, ANGELA MERKEL, SAYING: "Europe has not yet overcome the crisis. The mistakes of the founders of the economic and currency union are still not resolved." Basic resources stocks fell 1 percent And all STOXX Europe 600 sectors were in negative territory. With volatility being the word of the day.

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Oil rattles markets, despite Draghi

Monday, December 14, 2015 - 01:41