Markets ignore oil dip, slide on US job cuts
The stock market fell 2.8 per cent on Friday as more evidence of a weakening global economy offset any possible impact of sliding crude prices on investors' sentiments.business Updated: Sep 05, 2008 21:35 IST
The stock market fell 2.8 per cent on Friday as more evidence of a weakening global economy offset any possible impact of sliding crude prices on investors' sentiments.
Crude oil continued to fall, slipping to $107 per barrel in intra-day trading on Friday, but overnight data from the US pointing to increased job cuts in August and concerns over the progress of the India-US nuclear deal triggered a stock fall.
“The market did not take oil prices into account and gave higher weightage to the US job data and concerns over the nuclear deal,” said Amitabh Chakraborty, president equity, Religare Enterprises.
Weakening oil prices help authorities keep inflation under check and are expected to ease the growing strain on oil companies.
The poor job data from US triggered an overnight 3 per cent fall in the Dow Jones Industrial Average, the benchmark index of Wall Street. Through Friday, most Asian market fell in line.