European Markets Close Lower as Oil Slides Again

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The European markets closed lower on Wednesday amid oil slumps, which have dragged down stocks

A report from OPEC said the oil-producing countries are still pumping at near-record levels, which has led to a recovery in U.S. shale drilling. 

The Dow Jones Industrial Average closed down 0.5 percent at 19,735 points while the benchmark S&P 500 index fell 0.2 percent to 2,271 points.

The Nasdaq Composite Index closed 0.4 percent lower at 5,456 points.

European equities have been under pressure amid concerns about the stability of Deutsche Bank AG. 

The German lender’s shares tanked after a report from the Wall Street Journal said hedge funds were pulling their money out of the bank due to fears it might be insolvent and unable to pay a fine of up to $14 billion for mortgage bond mis-selling. 

Deutsche Bank’s shares were down by as much as 18 percent, which is an all-time low.

In terms of company news, shares in the U.K.’s housebuilders fell after investors turned their back from the stocks following a report that said British Prime Minister Theresa May could give an update on her government’s plans for the property market as soon as next week. 

Taylor Wimpey and Barratt Developments slumped by more than 5 percent, while Berkeley Group shares were down 2.2 percent.

In commodities trading, oil markets extended their decline after a fresh report from OPEC indicated that member countries are still pumping oil at near-record levels. 

Crude futures were down more than 2 percent, while Brent prices declined by 1.7 percent to $46.80 per barrel and U.S. crude fell by 1.9 percent to $45.30 a barrel. 

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