Oil down again as China growth worries fester; stocks flat
By Herbert Lash
NEW YORK (Reuters) - Global equity markets were flat on Tuesday after their worst January kick-off in years as concerns about the global economy weighed on sentiment and pushed traders to seek the relative safety of the low-risk yen.
Crude oil prices fell on concerns about the pace of growth in China, the world's second-largest oil consumer. News that Chinese rail freight volumes logged their biggest-ever annual decline in 2015 added to economic growth worries.
A rally in mining and telecom stocks helped European shares edge slightly higher in volatile trade, while major averages on Wall Street were slightly higher.
MSCI's all-country world stock index .MIWD00000PUS fell 0.01 percent and its emerging markets index .MSCIEF rose 0.09 percent.
On Wall Street, the Dow Jones industrial average .DJI gained 9.72 points to 17,158.66. The S&P 500 .SPX rose 0.2 percent to 2,016.71 and the Nasdaq Composite .IXIC lost 0.2 percent, to 4,891,43.
"The main reason for the uncertainty is China, given that company numbers and the macroeconomic picture in Europe and the U.S. have not changed," said Alessandro Allegri, chief executive of Italian asset manager Ambrosetti Asset Management.
In Europe, the pan-regional FTSEurofirst 300 index .FTEU3 rose 0.66 percent to 1,410.37. The heavyweight German index DAX .GDAXI gained 0.3 percent.
The yen climbed to its strongest level since April against the euro and hovered at its highest since October versus the dollar. The Japanese currency is traditionally sought at times of risk aversion. Continued...