American stocks followed European equities and crude oil lower, halting a two-day rally and, leaving the dollar largely unchanged against the euro and the yen but ascendant against resource currencies. Traders sought safety in markets from currencies to gold and U.S. Treasuries.
West Texas Intermediate, the U.S. crude standard, slipped over 7 percent from yesterday's close after having gained almost 25 percent from Wednesdays close at $26.55.
In Europe the FTSE 100 lost 0.39 percent, the Dax in Germany 0.29 percent and in Paris the CAC 40 was down 0.58 percent.
In New York the Dow as lost 208 points 1.29 percent with most of the losses late in the session to close at 15,885.22. The S & P 500 lost 29.82, 1.56 percent to 1877.08. The NASDAQ shed 72.69 points 1.58 percent ending at 4518.49.
Even after its sharp recovery last week, WTI is still looking at a 20 percent decline this year from its open on January 4th $37.60.
U.S. crude stockpiles remain high and with an unknown amount of Iranian oil returning to the markets due to the end of sanctions, the demand a question mark, oil markets are still anticipating a large oversupply for the immediate future.
One correlation between the value of S&P 500 and WTI has climbed to 0.9311 the highest level since August 2013.
Chief Market Strategist
WorldWideMarkets Online Trading