There were further sharp falls on Wall St yesterday evening after two days of relative calm over renewed concerns about oil prices and corporate profits.
The S&P 500 Index closed 2.5% lower, its biggest one-day drop since September. The Index has now lost 10% in value since last year’s high, the common definition of a market correction.
The Index has now lost 10% in value since last year’s high, this is the definition of a market correction.
Stocks in Asia followed suit with the Nikkei Index in Tokyo more than 3% lower overnight and Hong Kong went down by 1%.
The renewed turbulence was triggered by data from the US Energy Information Administration showing a strong rise in US stocks of crude oil, sending oil prices briefly below the $30pb level and hitting shares in energy companies.
Meanwhile, it’s reported in today's Irish Times that if oil prices remain at around $30 per barrel or lower this year, the Government here could collect up to €260m less in VAT from fuel sales than its projections when the last budget was announced.
