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Friday, December 12, 2014

Oil Slips a new Affects European stocks

U.S. crude oil sustained heavy loses as it slip further to under $60 a barrel. Brent crude has recorded its five and a half year low and on its way for sharp weekly loss. Europe stocks are glowing red, while German 10-yr bond yield at record low.

Falling crude oil prices have exposed weakness in U.S. high yield markets and increase volatility across asset classes.

The STOXX Europe 600 Oil & Gas Index went down about 1% in early trading, it pulled down the pan-European FTSEurofirst 300 index to 1,347.45 points. The euro zone's blue-chip Euro STOXX 50 index slide by 0.8% to 3,133.36 points with political concerns over Greece also hurting European stocks.

Global crude prices went down in recent weeks because of enormous oversupply, raising fears that deflation could hit economies around the world.

China data added up to more concerns for investors, with factory growth slowing more than expected last month to its second-worst reading since the global crisis and investment expansion hovering near a 13-year low.

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