Oil prices tumbled more than 6 per cent on Tuesday to eight-month lows as global producers and traders weighed the prospect of supplies overwhelming demand amid worries about a slowdown in economic growth.
Prices fell further after Opec’s research arm again reduced its forecast for 2019 oil demand growth in another sign Saudi Arabia and its partners inside and outside the cartel might be forced to curb supplies to bring the market into balance.
On Wall Street overnight, the S&P 500 gave back early gains to end 0.2 per cent lower, dropping for the fourth day in a row as a rebound for techs and financials faded and the energy sector tumbled alongside oil prices.
In Asia-Pacific equities, Sydney’s S&P/ASX 200 fell 0.1 per cent in early trading, while futures tip Tokyo’s Topix to drop 0.1 per cent and Hong Kong’s Hang Seng to rise 0.5 per cent at the open.
Corporate earnings reports out today include Tencent and Sumitomo Mitsui Financial Group.
The economic calendar for Wednesday has some top-shelf stuff in store (all times Hong Kong):
- 07.50: Japan Q3 gross domestic product
- 08.30: Australia wage price index
- 10.00: China retail sales, industrial production and fixed asset investment
- 14.30: India wholesale price index