Major stocks indices in US and Europe were thrown in red on Wednesday session as energy prices fell sharply despite an impressive data on crude inventories.
Oil futures tumbled about 2% after the US Energy Information Administration (EIA) reported that the rise in diesel and heating oil of about 4.6 million barrels offset the bullish crude inventories of 559,000 barrels, both during the week ended on September 9, which pushed crude futures to erase gains.
International Benchmark Brent Crude futures slipped 92 cents, or 2% to close at $46.18 per barrel while the US West Texas Intermediate futures lost 93 cents, or 2.1% at $43.97 per barrel.
The surprise draw in crude stockpiles and the large build in petroleum that cause the decline in oil prices did not do well for some major equity markets.
In Wall Street, the Dow Jones futures scratched its early gains and closed at 31.98 points lower, or 0.2% at 18 034.77. It had risen to a session high of 96.73 points but fell back after the IBM contributed huge losses.
The S&P 500 index lost 1.25 points, or 0.1% to close at 2 125.77 while the NASDAQ composite bucked the trend as it gained 18.52 points, or 0.4% at 5 173.77.
Across Europe, the pan-European STOXX 600 closed 0.09% lower. France’s CAC and Germany’s DAX pared losses of 0.08% and 0.39% respectively while UK’s FTSE futures ended 0.12% higher.
Prices of gold commodities surged on Wednesday as the investors dig more clues for the timing of the highly-anticipated interest rate hike by the Federal Reserve.
Spot gold recovered from its lowest close of $1 315.27 recorded last Tuesday as it advanced 0.18% and was last trading at $1 326.10 an ounce.
US gold futures added up $2.40, or 0.2% to finish at $1 326.30 an ounce.
Meanwhile, the spot silver also gained ground as it was up 0.46% at $18.49 an ounce. Platinum and palladium rose 0.34% and 0.30% respectively.