European Markets Close Lower as Commodities Feel the Pinch
European companies listed on the London, Frankfurt and Paris stock exchanges closed significantly lower on Monday as a slight uptick in industrial production across the eurozone failed to offset bearish sentiment in oil markets which pummeled commodities stocks.
Crude oil prices were recently trading at prices worth less than half of what they were at one year ago due to a vast glut in supply.
A decision made by the Organization of Petroleum Exporting Countries, which holds a 40% share of the world's oil production market, to raise, rather than lower, its production ceiling for 2016, underpins the most recent decline which has seen oil sliding to prices not previously seen since February 2009.
Separately, European Central Bank (ECB) President Mario Draghi reassured the market that the central bank would intensify the use of all available instruments to spur inflation if such actions are deemed necessary. The speech, delivered in Bologna, Italy, comes less than a fortnight after the ECB unveiled measures to boost growth in the eurozone which fell short of what traders had expected.
In macro-economic news, industrial production rose marginally across the eurozone, according to Eurostat, the statistics office of the European Union. Seasonally adjusted industrial production rose by 0.6% in the euro area in October 2015 from September 2015. Compared to the corresponding month of the previous year, industrial production increased by 1.9%.
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