FTSE 100 tumbles after Saudi rules out oil output cuts and pound falls below $1.40 as Brexit fears bite

Luxury fashion house Burberry has posted its steepest two-day loss in five months after rival upmarket retailer Hugo Boss warned on profits. 

On Tuesday, shares in Hugo Boss sank to their lowest level in five years after it revealed it would slash prices in Asia in a bid to revive weak sales.

It also said sales in the US so far this year have been lower than expected. The German fashion house now expects profit to fall at a low double-digit percentage rate. 

In its wake, investors offloaded Burberry shares. In a bearish note, Liberum warned Burberry is “overly exposed to the Chinese consumer”, as the region accounts for 38pc of its sales, while 27pc of its sales come from the US.  The broker highlighted that read-across from Hugo Boss is “unfavourable” for Burberry, reiterating its '“sell” recommendation.

Tom Gadsby, of Liberum, said: “We do not believe that the luxury goods model lends itself well to price cutting and promotion, rather brand value is driven by exclusivity engendered by high pricing.” 

However, UBS sees “limited read-through” from Hugo Boss, as it believes price differentials are not as stretched as its rival.

Helen Brand, of UBS, said: “The brand already made some price adjustments in 2015.” Shares in Burberry have been battered by concerns about the health of the Chinese economy.

Since hitting a peak of £19.21 in February last year, the stock has plummeted 38.6pc. The FTSE 100 stock has plunged 109p, or 8.65pc, to £11.80 since Monday.

On the wider market, Britain’s benchmark index slumped to its lowest level in more than a week - down  95.13 points, or 1.6pc, at 5,867.18 - as commodities prices came under renewed pressure.

Fresh concerns about the strength of demand from China triggered a fall in copper prices, eroding recent gains. Three-month copper on the London Metal Exchange fell 0.7pc to $4,610.50 per tonne.

Anglo American dropped 43.3p, or 9.6pc, to close at 409.8p, Glencore fell 10.1pc to 116.4p, Rio Tinto slid 5.7pc to £18.74 and Antofagasta was 4pc lower at 476.5p.

Although the world’s largest miners are experiencing wildly volatile share price movements on a daily basis, analysts at Investec said the moves are still “notable”. 

A day after it slashed its dividend by 75pc in an attempt to save its balance sheet, BHP Billiton tumbled 8.4pc to 684.3p. However, Kieran Daly, of UBS, cautioned: “We see a risk that the sector remains depressed for a period of time if commodity prices do not pick up.” 

Oil majors continued to fall after Saudi Arabia ruled out production cuts on Tuesday. However, Brent crude eased back to around $34.10 in the afternoon after US data showed crude inventories did not rise as much as expected last week.

Royal Dutch Shell B shares were changing hands at £15.48 by close, down 1.6pc, and BP declined by 3pc to 335p. FTSE 250 Tullow Oil and Amec Foster Wheeler dipped 6.4pc and 8.9pc, respectively. 

However, mid-cap oil stock Petrofac bucked the trend, rising 4.8pc to 777.5p after it posted revenue growth of 10pc for the year. It also said its order book stood at record levels at the end of 2015. 

Elsewhere, the persistent oil price volatility triggered another gold rush. The precious metal surged by as much as 2.5pc to $1,253.39 per ounce as investors piled into the safe-haven asset once again amid nerves of slowing global growth. This brings its gain to 17pc so far this year.

Jasper Lawler, of CMC Markets, said: “Gold is trading on pure fear and a jump of 2pc on the day tells you there’s plenty of fear in markets right now.” 

Market jitters bode well for gold producers, lifting Randgold Resources to the top of the blue chip index, up 130p, or 1.9pc, to £66.50, while Fresnillo also made gains of 1.7pc to finish trading at 992.5p. 

Meanwhile, a slew of bearish broker notes kept Standard Chartered deep in the red for a second consecutive trading session, after it posted its first annual loss on Tuesday since 1989. Bank of America Merrill Lynch slashed its rating to “neutral” due to its “depressed” returns. BoA believes it will take several years to rebuild returns to “an appealing level”. 

Separately, Nicholas Hyett, of Hargreaves Lansdown, said the stock price was also dented by news that “record high personal debt levels in the key Korean markets might be reaching danger levels is less than welcome”. The FTSE 100 bank dropped 17.9p, or 4.4pc, to 389.1p. 

On the mid-cap index, Entertainment One soared 9.9pc to 149.4p on the back of a JP Morgan Cazenove note. The investment bank said shares of the Peppa Pig owner were “too cheap” for its “attractive growth profile”. 

Consumer credit lender International Personal Finance received the unwanted accolade of biggest mid-cap loser and shares suffered their steepest daily fall in five years, down 13.1pc to 230.4p, after its full-year underlying profit fell 6pc. It also warned new legislation in Poland and Slovakia will bruise its profitability. 

Finally, housebuilders enjoyed a double bounce after the British Banker’s Association showed mortgage lending hit its highest level since mid-2008 and Barratt Developments unveiled a robust set of half-year results.

In the six months to December, Barratt’s pre-tax profits leapt 40pc to £295m. The FTSE 100 stock rose 9.5p, or 1.7pc, to 571.5p, Persimmon added 46p to £20.75p, Taylor Wimpey advanced 1.1p to 177.6p and Berkeley Group ticked 9p higher to £32.31p. 

That's all for today. We're back again tomorrow with more market updates. 

The rebound in oil prices has eased losses on Wall Street. 

Stock markets across the global are tracking oil price moves closely so far this year. 

The uptick in the oil price triggered a modest rebound in energy stocks Stateside and although the Dow Jones industrial average is still off by 125 points, or 0.76pc, it eased back from earlier losses. 

The S&P 500 has fallen 0.9pc today, while the Nasdaq is nursing a loss of 0.6pc.

Here's a look at the direction the Dow Jones has moved today: 

 

And so the oil price volatility continues.

This evening US data showed crude inventories did not rise as much as expected last week bringing the oil price slump to an abrupt halt. 

Brent crude climbed upwards by more than 3pc above the $34 a-barrel mark after strong US gasoline demand offset worries over record high crude stockpiles in the world's largest economy.

Here's a chart of how Brent performed today: 

 

A slew of bearish broker notes kept Standard Chartered deep in the red today, after it posted its first annual loss on Tuesday since 1989.

Bank of America Merrill Lynch slashed its rating to “neutral” due to its “depressed” returns. BoA believes it will take several years to rebuild returns to “an appealing level”.

Nomura cut their forecasts for the bank's revenue and Deutsche bank pointed to weaker-than-expected revenue in the forth quarter. 

Separately, Nicholas Hyett, of Hargreaves Lansdown, said the stock price was also dented by news that “record high personal debt levels in the key Korean markets might be reaching danger levels is less than welcome”.

The FTSE 100 bank dropped 17.9p, or 4.4pc, to 389.1p.

Copper prices slumped today eroding recent gains, triggering a sharp fall in UK-listed miners. 

The price of three-month copper on the London Metals Exchange slumped 0.7pc to $4,610.50.

In its wake, the usual culprits occupied the top FTSE fallers space, with Glencore plunging 10pc and Anglo American not far behind, off 9.6pc. 

Here's a look at the top fallers on the FTSE 100 today: 

 

European markets continued to take a bruising in afternoon trade as weak commodity prices weighed heavily on bourses in the region. 

The FTSE 100 closed down 1.6pc at 5,867.18 - its lowest level in a week, while the German DAX lost 2.6pc and the CAC in Paris finished the day 2pc in the red. 

The US service sector business activity declined this month for the first time since October 2013. 

At 49.8, the seasonally adjusted Markit Flash US Services PMI Business Activity Index was down sharply from 53.2 in January. 

The latest figures add to already fragile sentiment and concerns about growth in the US economy. 

Commenting on thedata, Chris Williamson, chief economist at Markit said: “The PMI survey data show a significant risk of the US economy falling into contraction in the first quarter. The flash PMI for February shows business activity stagnating as growth slowed for a third successive month. Slumping business confidence and an increased downturn in order book backlogs suggest there’s worse to come.

“With the exception of the government shutdown of October 2013, February has been the worst month for business since the recession. Business activity in services fell for the first time since the shutdown, accompanying a marked slowdown to near stagnation in manufacturing."

Paddy Power Betfair, DCC and Grafton are just some of the Irish companies that could emerge the victors from a Brexit. 

In a note published today, Investec said if sterling weakens further, the most obvious winners are Irish companies reporting in sterling but with significant earnings in euro. 

Gerard Moore, of Investec, said if a Brexit actually were to occur and Duty Free, for example, was reintroduced between the UK and Ireland, then ferry operator ICG would be a stand out winner. 

"In the late 90s when Duty Free was last in existence, ICG generated roughly half of its pre-tax profits from Duty Free-related activities." 

On the downside, Ryanair, C&C and Origin Enterprises would lose out as the main FX risk would be "translational more so than transactional". 

Mr Moore said: "For Ryanair, we believe any impediment to the free movement of passengers would likely add costs, albeit for the whole industry and therefore be likely passed on to customers." 

South Africa's rand fell sharply against the dollar after finance minister Pravin Gordhan slashed the 2016 growth forecast to 0.9pc from a previous forecast of 1.7pc, as part of the country's budget. 

"South Africa faces exceptionally difficult global and domestic economic conditions over the next several years," Mr Gordhan said. 

 

The renewed pressure on crude weighed heavily on the opening bell at Wall Street this afternoon. 

US stocks sank and quickly extended their losses, eight minutes into trading. 

The Dow Jones industrial average lost 1.1pc, while the Nasdaq fell 1.23pc. 

Shares in BHP Billiton have plunged by more than 8pc today to 683.3p  after six Samarco executives were charged with manslaughter following the dam burst at the mine late last year. 

Samarco is a joint venture of Vale SA and BHP Billiton.  The news comes a day after BHP scrapped its progressive dividend. 

Jillian Ambrose writes: 

Top executives at miner Samarco have been charged with manslaughter after a dam burst on its site in November last year, flooding local villages and leaving 19 people dead.

The Brazilian authorities charged six executives of the firm – owned by Anglo-Australian firm BHP Billiton and Brazilian miner Vale – with “qualified homicide”, the equivalent of  involuntary manslaughter in UK law.

Those accused include Samarco boss Ricardo Vescovi and an independent consultant working on the project.

The arrest warrants were issued after the first official incident report ruled out the possibility that a minor earthquake may have contributed to the burst, which flooded the River Doce valley.

Instead the investigators claim that a string of failures surrounding the dam’s maintenance caused the burst, and that the project’s emergency plans did not provide local people with sufficient warning.

According to Brazilian authorities the accident was caused by a lack of proper monitoring. This caused the resevoir behind the dam to overfill. It added that faulty equipment and a failure in the drainage system also played a role.

Full report here

US stocks are set to open by more than 1pc in the red as oil falls sharply after Saudi Arabia ruled out any oil production cuts. 

Yesterday, the Dow Jones closed down 1.1pc and the S&P 500 made losses of 1.3pc. 

Connor Campbell, of SpreadEx, said: "Sadly for the markets things look unlikely to improve this afternoon, the Dow Jones set for a 120 point drop at the open.

"Given the uniform negativity currently coating the markets it seems that the flash services PMI (expected at 53.4 against last month’s downward revised 53.2) and new home sales (forecast at 522k against 544k last month) will be released without much fanfare once the American session gets underway."

Ryanair has become the latest company to support the campaign for Britain to remain in the European Union. 

In a statement, the low-cost carrier said it remained "a committed supporter"of the UK remaining in the EU for the following reasons: 

• this will lead to more UK jobs & better economic growth
• EU open skies has transformed UK tourism & job creation prospects
• the free movement of goods & services has made the UK one of Europe's most competitive & best performing economies
• David Cameron's negotiated reforms protect Sterling, limits immigration and closer Union, while reducing bureaucracy
•  foreign inward investment in the UK will be lost to Ireland & Germany if the UK leaves Europe

While it agrees the EU needs reform, it said the best way to achieve this is for the "UK to lead from within the EU" and not from outside. 

Boss Michael O'Leary said: "Leaving Europe won't save the UK money or red tape because like Norway the UK will still have to contribute to Europe, and obey its rules if it wants to continue to trade freely with Europe, so it's clear that UK voters should vote Yes to Europe and Yes to the reformed Europe, that David Cameron has delivered. Ryanair, our people and I hope the vast majority of our customers, will all work together over the coming months to help deliver a resounding Yes vote on June 23rd."

Shares in Panmure Gordon have ticked up 1.7pc to 58p after its boss Phillip Wale resigned. 

Financial services editor Marion Dakers writes: 

The boss of the City stockbroker Panmure Gordon has left the firm just a week after its chairman announced his departure.

Phillip Wale, a former Goldman Sachs and Commerzbank trader who joined Panmure in 2012, has stepped down with immediate effect after what one executive described as a "strategic misalignment" with the board. 

He follows Ed Warner, who said he was vacating the chairmanship in May to spend time on other ventures including UK Athletics and his board seat at Grant Thornton. 

Panmure said its deputy chief executive Patric Johnson would now take the reins, with the backing of the outfit’s Qatari backers QInvest, which rescued the firm in 2009.

QInvest has also agreed to lend Panmure £5m. “We look forward to deepening our relationship with Panmure Gordon as it enters a new phase to ensure value creation for all stakeholders,” said Tamim Al-Kawari, non-executive director at Panmure.

Full report here

As fears of a Brexit weigh heavily on the pound, economics correspondent Peter Spence writes: 

The pound has dropped below $1.39 for the first time in nearly seven years, with economists warning that a British exit from the European Union could leave households squeezed by a brutal combination of soaring inflation and weak economic growth.

Sterling fell as low as $1.388 this morning, as anxiety over the forthcoming EU referendum continued to hit the currency. Analysts at HSBC have warned that the pound could drop at a “fast and furious” pace if the UK voted to leave the EU.

Economists at the bank said that leaving the EU could cause the pound to fall by as much as 20pc against the US dollar, taking it “down to levels not witnessed since the early 1980s”. Sterling would slip towards the value of a euro, the bank’s analysts added.

Such a depreciation could see inflation jump above 5pc for the first in nearly five years, according to HSBC, potentially exceeding its September 2011 record of 5.2pc, as the goods and services imported by UK households would suddenly become far more expensive priced in pounds.

Simon Wells, HSBC’s chief UK economist, said: “Higher inflation would erode real incomes, leaving households with less to spend.”

Full report here

European bourses have extended their losses this afternoon as commodity-related stocks come under further pressure. 

Frankfurt's DAX is down 2.3pc, while the CAC in Paris is off by 2pc and the FTSE 100 has fallen 1.4pc. 

 

Here's a graph of how the DAX has performed so far today: 

Man Group is on track for its sharpest daily fall in six months after it reported higher-than-expected staff costs. The FTSE 250 stock plunged 5.6pc to 152.5p .

Financial services editor Marion Dakers writes: 

The London-listed hedge fund manager Man Group has joined the ranks of large companies warning about the possible cost of a British departure from the EU.

The FTSE 250 group, which invests in markets around the world from its headquarters in London, has spoken out about the uncertainty within Brexit.

“While it is hard to say exactly what the impact would be, the uncertainty and potential negative consequences of Brexit for the UK’s economy should not be underestimated,” said chief executive Manny Roman.

The hedge fund industry is divided about the wisdom of EU membership, with some including Crispin Odey supporting the Vote Leave campaign, while others including Winton founder David Harding backing the case to stay. 

Mr Roman's comments came as Man reported growing assets under management while higher staff pay and other costs sent the firm’s profits down by almost half.

Shares in Petrofac leapt towards the top of the mid-cap index - up 4.5pc to 775.1p - after it said its order book stood at a record level. 

Jillian Ambrose writes: 

Oilfield services giant Petrofac has reported a dramatic plunge in profits for 2015. The slump was attributed to spiralling costs at the company's Shetland Island gas project against a backdrop of falling global commodities prices.

Full-year net profits fell from $581m in 2014 to just $9m last year when taking the beleaguered Laggan-Tormore scheme into account. Without the high costs of the project, full-year profits would be $440m, still 24pc lower year or year due to weaker oil and gas prices.

Petrofac boss Ayman Asfari said: "Our results for 2015 were adversely affected by the Laggan-Tormore project on Shetland. However, we faced up to the exceptional challenges we encountered and honoured our commitment to our client.

"With the plant now successfully operational, these issues are finally behind us. We enter 2016 with a renewed focus on our core strengths.”

Full report here

Since hitting a high of $35.61 a barrel last Thursday, Brent crude has slumped by 8.51pc to $32.56. 

Last week, Saudi-Russia's deal to freeze production at January levels sent the oil price soaring. But yesterday's comments by Saudi's oil minister, when he ruled out a production cut, sent the black stuff tumbling. 

It was also little helped by reports Iran described the production freeze agreement as "ridiculous". 

Risk aversion across global equities has triggered another gold rush. 

Investors are once again piling into the precious metal as oil drags global stock markets into the red. 

The safe haven asset has risen 1pc today to $1,235.50.

David Madden, an IG analyst, said: "The metal has been in an upward trend since the turn of the year, and while it holds above $1217 additional gains are a possibility. The next big resistance level in sight is $1234 and any pullbacks may entice more buying."

This morning HSBC warned if the UK votes for a Brexit it could wipe as much as 20pc of the value of the pound. 

Here's what a fallout from a Brexit looks like according to HSBC: 

Shares in Barratt Development ticked 5.5p higher to 567.5p after its pre-tax profit rose 40.3pc to £295m in the six months to December 31.

Rhiannon Bury writes:

Residential property developer Barratt has become the latest housebuilder to report increased profits, as government initiatives to help first-time buyers continue to push up demand for new homes.

Pre-tax profits soared 40pc in the six months to December, helped by improved mortgage availability and schemes to get first-time buyers onto the property ladder.

Barratt sold 9.4pc more homes in the half-year period, compared with a year earlier, at a rate of 260 a week.

The company trades under three brands - Barratt Homes, David Wilson Homes and Barratt London – all of which benefited from a 0.5pc increase in the number of transactions completed in the wider UK property market last year.

David Thomas, chief executive of Barratt Developments, said: “In line with our strategy, we have stepped up the number of completions in the first half and we did this in a disciplined way, both financially and operationally, without compromising on the quality of the homes we’re building.

Full report here

And so the sterling slide continues.

The pound has now fallen 0.97pc against the dollar today and is currently at $1.391 - another fresh seven year low.

Jasper Lawler, of CMC Markets, said: "The Brexit threat is plain to see in the British pound which has dropped off a cliff to reach its lowest in seven years. A drop in the pound is in general a good thing for UK exports but that’s only insofar as it boosts competiveness abroad. That isn’t so much the case if it’s dropping over fears Britain could sever trade ties by leaving Europe.

"A strong pound has long since been a drag on UK prices as we import low inflation from the Eurozone. Should the UK vote to remain in Europe, the inflationary pressures from a weaker pound could prompt a rate hike from the Bank of England a lot sooner than currently priced by markets."

Industry editor Alan Tovey writes: 

Airbus has reversed plans to cut production of its A330 airliner in a move that could deliver a lift to troubled engineer Rolls-Royce.

Tom Enders, chief executive of the pan-European aerospace business,revealed the news as he reported what he described as “solid” annual results, with revenue climbing 6pc to $64.5bn and profits rising 2pc to €4.1bn when exceptional items are stripped out.

Airbus had planned to reduce the rate at which produced its A330 airlinerto seven aircraft a month from next year, with the aim of taking it even lower.

Until recently, 10 of the twin-engine wide-body jets rolled off Airbus’s production line each month, but the company cut this to nine as customers pared back orders ahead of the introduction of a modified version of the jet.

Read more here

Britain's benchmark index has dropped to a one-week low this morning. 

It fell by as much as 1.48pc to 5,874 - its lowest level since last Wednesday when it hit 5,862.

The FTSE 100 suffered another leg down today after miners and oil majors tumbled following another slump in oil, after Saudi Arabia ruled out any oil production cuts. 

 Lukman Otunuga, of ForexTime, said:  "It is becoming increasingly clear that the elevated concerns over the state of the global economy have manufactured a highly sensitive trading environment which continues to be dictated by violent swings in the oil markets.

"With anxieties towards the ongoing global turmoil still heightened and further declines in oil prices expected, stock markets may be left vulnerable and set for more pain as jittery investors systematically scatter away from riskier assets."

The pound has hit another new low this morning. It hit a fresh seven year low of 1.3925 against the dollar as Brexit fears heighten. 

In a note published this morning, HSBC has warned a vote for Brexit could trigger a 15-20pc fall in sterling against the dollar, pushing it back to levels last seen in the 1980s. 

The bank also believes economic growth in the UK could be between one and 1.5 percetnage points lower if  it voted to leave the EU. 

HSBC analysts said: 

"The asset class that would be likely to bear the brunt of this uncertainty is FX. A Brexit vote could lead investors to worry about the UK’s ‘twin deficits’. To date, these have largely been ignored by the FX market. Brexit could raise concerns and Mark Carney, the BoE Governor, recently warned that Brexit could leave the UK reliant on “the kindness of strangers” in an environment of global economic volatility.

" If the currency market is pricing in around a 33pc probability of a Brexit vote, GBP-USD could fall by around another 15-20pc should a Brexit vote occur (i.e. if the probability shifted from 33pc  to 100pc)."

 

On GDP growth, the bank said: 

"Brexit-induced slower GDP growth would mean a near-term negative impact for UK corporates and non-UK corporates with large UK revenue exposure. We would be concerned about UK corporates with a large share of revenue from Europe (ex UK) and non-UK corporates with a large share of revenue from the UK.

"Businesses with lengthy supply chains that straddle the UK and EU would, in a worst case scenario, be at risk of customs or regulatory barriers between the two, with sectors such as aerospace and defence most affected. We would also see UK bank credit as a key sector underweight immediately following a vote to leave."

The persistent oil price volatility continues to wreak havoc on global equities this morning, after a mixed session in Asia. This morning European stock markets opened in the red, and already they have extended their losses. 

The FTSE 100 is now down by 1.15pc at 5,894.32.

David Buik, of Panmure Gordon, comments: "It would appear that the price of oil is becoming the unhealthy barometer of global equity markets. It is all but omnipotent. It was the catalyst in Europe yesterday, which saw the FTSE 100 yield 75 points to 5962.  

"I think it is worth pointing out in what was a fairly nondescript session that JP Morgan Chase has set aside a further $500m impairment contingency for loans to energy companies.  JPM'S shares fell by 4.2pc.  Don't tell me that JPM is the only bank exposed to his sector!"

 

As the pound crashes to seven year lows amid fears of a Brexit, Michael Hewson, of CMC Markets, believes it is "not a zero sum game" if Britain left the European Union.

"The belief that the Euro area can carry on regardless is to coin a phrase used by the Prime Minister recently “for the birds”. The effect on confidence in Europe could shatter as well, if the continents second largest economy concludes the current arrangement is unworkable, and votes to leave.

"This ought to be something European politicians should consider when they talk about the consequences of a UK exit, as there will be consequences for European cohesion as well. If the current agreement is the best they can come up with then even if the UK votes to stay, the current problems are only likely to be deferred.

"We now look to be on course for cable to post its lowest monthly close since early 2002. Even in the midst of the financial crisis in early 2009, despite hitting lows of 1.3500 it still managed to close the month well above the 1.4200 level, yet due to receding expectations of a rise in interest rates here in the UK it has slid over 8pc since the beginning of November.

"In fact in the last 30 years the last time the pound managed to close on a monthly basis below the 1.4100 level was way back in 1985, when it was on the way from recovering from its all-time low against the US dollar at 1.0520 in March of that year."

 

Sterling has fallen by as much as 0.45pc this morning to 1.3965 against the US dollar as fears of a Brexit continue to bite. 

Rebecca O'Keeffe, of Interactive Investor, said: "Sterling remains under significant pressure, hitting lows not seen since 2009, as EU referendum concerns increase and the uncertainty surrounding a possible exit dominates sentiment.

"With opinion split on what the impact would be for markets, investors are starting to look at which companies could benefit from further currency devaluation and which are most exposed to weaker sterling or a potential UK exit."

European bourses opened for a second consecutive trading session in the red after another savage sell-off in oil-related stocks. 

Frankfurt's DAX lost 0.9pc, while the CAC in Paris was off by 1pc and the Spanish IBEX lost 1.4pc. 

In London, the FTSE 100 dropped 0.45pc to 5,935.26.

Mike van Dulken, of Accendo Markets, said: "The flat opening call comes after a mixed Asian session and following a weak US close as global risk appetite slumped further following yet another decline in the price of oil to break below recent rising support as markets price in a host of negatives regarding OPEC disagreement, no production cuts and the likelihood that US Shale producers have become the de-facto swing producers, ready to rush back as soon as the price of a barrel recovers to $40 and above."

Here's a chart of how the FTSE 100 has performed so far this week: 

 

Good morning and welcome to our live markets blog. 

The price of oil continued to tumble overnight after Saudi Arabia ruled out production cuts. 

In Japan, the Nikkei lost 0.9pc, while the Hang Send in Hong Kong lost 1.2pc, as energy companies were hurt by latest drop in oil. 

Meanwhile, in China, stock markets reversed early losses and managed to claw their way back into positive territory by close of trading. 

The CSI300 and the Shanghai Composite index recorded gains of 0.7pc and 0.9pc, respectively, thanks to a jump in infrastructure shares. 

Last night, Wall Street also suffered losses, with the Dow Jones closing down 1.4pc and the S&P 500 1.3pc lower. 

Here's a graph of the Nikkei's performance overnight: