The slump was led by CNOOC, the Chinese oil giant, after announcing plans to acquire Canadian oil producer NexenInc for 15.1B. The announcement was received with a 4% loss as investors think the company is overpaying.In the same sector China Petroleum & chemical corp fell .6% after agreeing to buy a 49% stake in Talisman Energy for 1.5B, another Canadian company.
Europe is again down on Spanish Banking concerns as the FTSEurofirst falls .2%. Financial shares were top decliners with the insurance sector down 1.2% and banking down 1%. Moody’s changed its outlook for Germany, the Netherlands and Luxembourg to “negative” from “stable” on pure speculation of Greece leaving the Eurozone. The Eurozone PMI fell to 44.1 from 45.1 in June touching a 37 month low and unemployment fell for a seventh consecutive month and at the fastest rate in 2.5 years.
Commodities look bleak to begin the session with crude, natural gas, gold and silver all starting in the red.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu