(as of 7:25 AM PST)
It appears that oil and water really don’t mix. As the rains
continue to fall here in Portland, so do oil prices and investors are
responding negatively to the recent drop. Energy shares are taking a hit as
crude oil prices have dropped below $37 per barrel which have put all of the
major indexes in the red at the opening bell. With no other market moving news
set to come out in a light economic news day, oil has the spotlight and seems
to be the major driver. The drop in oil prices also calls into question
how the Fed may respond when they meet next week to decide on what to do with
interest rates. This uncertainty isn’t sitting well with investors.
Disappointing trade data out of China is also weighing on global indexes, as
China showed exports falling for a fifth straight month in November. Lastly,
downward pressure on the market could also be due to seasonal tax-loss selling
strategies that investors employ at the end of the year to offset capital gains
taxes.
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