US sharemarkets recorded a sharp slide on Tuesday in the wake of the pullback in oil prices. JP Morgan (down 3.8%) said it would set aside another $500 million to cover losses stemming from the energy sector. Shares in Chevron fell 3.4% while Exxon lost 1.1%. Nine out of the 10 major S&P sectors were weaker. However shares in Toll Brothers, the largest US home builder jumped 3.6% after reporting a lift in quarterly revenue. At the close of trade the Dow Jones was down by 189 points or 1.1%, the S&P 500 index lower by 1.3% while the Nasdaq lost 67 points or 1.5%.
US sharemarkets recorded a sharp slide on Tuesday in the wake of the pullback in oil prices. JP Morgan (down 3.8%) said it would set aside another $500 million to cover losses stemming from the energy sector. Shares in Chevron fell 3.4% while Exxon lost 1.1%. Nine out of the 10 major S&P sectors were weaker. However shares in Toll Brothers, the largest US home builder jumped 3.6% after reporting a lift in quarterly revenue. At the close of trade the Dow Jones was down by 189 points or 1.1%, the S&P 500 index lower by 1.3% while the Nasdaq lost 67 points or 1.5%.
Global oil prices fell sharply on Tuesday after Saudi Oil Minister Ali Al-Naimi ruled out production cuts. Big oil exporters Saudi Arabia and Russia proposed to freeze output at January levels which were near record highs, only if other producers also do the same. Iran is unlikely to agree to the production cap. According to an Iranian news agency, the country's oil minister said that the production freeze is "laughable" because it does not allow Iran to regain market share. Brent crude fell by US$1.25 or 3.6% to US$33.44 a barrel. US Nymex fell by US$1.52 or 4.6% to US$31.87 a barrel.
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