US Close 21 Jan 16: Nice recovery on US markets at the close but the Dow still off 249pts Nas off 5pts.

 Global equities markets slumped in response to the continued slide in oil prices. Bonds and gold were favoured but major currencies were mixed against the US dollar.

US sharemarkets fell in line with Asian and European markets in response to the slide in oil prices. Selling was exacerbated by the high valuations for US stocks. After being down 565 points at one stage, the Dow Jones recovered sharply in the last hour to be down by 249 points or 1.6%. The S&P 500 was down by 1.2% while the Nasdaq lost 5 points or 0.1%.

Global oil prices slumped again overnight. Colourful language from the International Energy Agency to the effect that the world could "drown in oversupply" led to a worsening in investor sentiment. Brent crude fell by US88c or 3.1% to US$27.88 a barrel with the expiring US February Nymex contract lower by US$1.91 or 6.7% to US$26.55 a barrel. The March Nymex contract is trading at US$28.75/barrel.

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