Global equities off to poor start, Brent crude at 11-year low

Jan 07, 2016 (LBO) - Global equity markets are off to their worst start since 2000, with a weaker Chinease yuan sparking concerns about the global economy, as Brent crude fell to a 11-year low of 34.23 dollars a barrel. The MSCI All-Country World Index ended the first three days of 2016 down by 3.3 percent and the MSCI Emerging Markets Index fell to its lowest level since 2009. U.S. equities dropped to a three-month low with the S&P 500 closing down 1.3 percent overnight, Nasdaq was down 1.14 percent and DJIA fell 1.47 percent. The yuan was fixed at 6.5314 to the dollar onshore Wednesday, down 0.2% from the previous day. In offshore markets, it was at 6.6940, down 0.7% on the day and about 2% so far this year. The spread between the onshore and offshore value is the widest since offshore trading started five years ago. U.S. Treasuries jumped, with yields on 10-year notes dropping seven basis points to 2.17 percent. China shares closed up 1.75 percent, as Brent crude hit 34.23 dollars a barrel, down six percent at 0100 am GMT. The ruble weakened most among emerging-market currencies as tumbling oil prices exacerbated a selloff in riskier assets.
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