The collapse of oil leads to Wall Street to its biggest drop in two months

The collapse of oil prices in international markets, today ended the day at levels not seen since five years ago, led Wall Street to sign their biggest drop in two months.

A barrel of Texas, the US benchmark, closed the session with a sharp drop of 4.24% to $ 63.05, while Brent crude, the benchmark in Europe and other global markets, finished below $ 67. The price of oil has been in free fall for several weeks and triggered sharp declines on Monday was a report from JPMorgan predicts that prices will continue falling in the short term because OPEC has decided to maintain production.

At the end of the day the Dow Jones Industrial Average fell 106 points (0.59%) to close at 17,852.48 points, while the selective S & P 500 fell 0.73% to 2060.31 integers, and the Nasdaq fell 0.84% to settle at 4740.68 units.

Pessimism that was installed between stock traders in international markets by falling oil prices also contributed several worse than expected in Asia and Europe economic data.

The Japanese GDP shrank by 1.9% in the third quarter, while exports to China recorded an annual increase of 4.7%, below what analysts expected.

Furthermore, industrial production in Germany rose a slight 0.2% in October, also less than experts had estimated, which dragged the main financial centers of Europe.

Corporate news of the day came from the hand of the US pharmaceutical Merck, which announced an agreement to purchase the drug manufacturer Cubist Pharmaceuticals for about 8,400 million.

Nor were good things for McDonald’s multinational, whose actions led losses in the Dow Jones with a sharp drop of 3.84% after announcing that worldwide sales fell 2.2% last month.