US open: Markets in decline with sliding oil following Saudi minister remarks

Markets were falling on Friday as oil continued to slide on a quiet day for economic data.

Early in the day the Dow Jones Industrial Average decreased 0.95% to 17,737.37, the S&P 500 dropped 0.84% and Nasdaq descended 0.64%.

Analyst Jasper Lawler from CMC Markets said equities are now in negative territory over the year-to-date: “US stocks plummeted back into the red for 2015 after the US unemployment report on Friday showed the number of jobs created exceeded expectations but wages declined in December.

“There had been some concern going into the [data] over the declines seen after the previous month’s report. The fall in wages proved the catalyst needed to sell the initial strength after the data came out.”

Meanwhile, crude futures continued to fall with WTI figures down 3.7% at $46.64 a barrel and Brent about 3.7% lower at $48.30 a barrel.

Alastair McCaig from IG noted: “Oil prices have taken another step towards the Saudi oil minister’s prophetic statement about the $40 level, as Brent crude has now moved below $49 a barrel.

"With every panicked reaction to these oil prices moving lower, we are seeing a little life being breathed back into the gold price as it explores the ground above $1,230 and even threatens to move into short-term overbought territory.”

Over on COMEX, gold futures were advancing 0.48% to $1,221.90 while the dollar was prevailing against the pound, but receding against the yen and the euro.

The yield on a benchmark US 10-year Treasury opened flat at 1.94%.

Meanwhile, in the corporate world NPS Pharmaceuticals surged over 8% after the news that it will be acquired by Shire for $5.2bn.

SanDisk plummeting over 11% after revealing lower fourth-quarter revenue estimates.