<div>Oil prices fell to fresh five-year lows on Tuesday (9 December), prompting investors rattled by worries over global growth and renewed political uncertainty in Greece to dump shares.<br /><br />European shares hit a two-week low on Tuesday, with a further slide in crude oil prices hitting energy stocks. Greek stocks sank 6.6 percent, a day after the government announced it would bring forward a presidential vote by two months. Greek banks fell sharply, with National Bank of Greece down 8.8 percent and Alpha Bank dropping 7.9 percent. Greek government bond yields soared.<br /><br />Globally, Chinese shares were standout losers, notching up their biggest daily percentage loss in more than five years and reversing a two-week rally.<br /><br />In India, the benchmark Bombay Stock Exchange (BSE) Sensex slipped below the 28,000 level and the National Stock Exchange (NSE) Nifty dropped below the 28,000 mark at midsession as funds and retail investors indulged in selling activity amid weak global cues after crude oil dipped to fresh five-year lows.<br /><br />After opening in negative terrain on continued selling activity by participants, the Sensex dipped below the psychological 28,000-mark to touch a low of 27,869.92. It, however, recovered marginally to 27,911.35, down by 208.05 points, or 0.74 per cent at 1330 hours.<br /><br />Major losers that pulled down the Sensex and Nifty from crucial levels were Sesa Sterlite, Tata Power, NTPC, Hindalco, Bhyarti Airtel, ONGC, Tata Steel, BHEL, SBI, Axis Bank, L&T, Tata Motors, Maruti Suzuki, Coal India, RIL and Cipla.<br /><br /><strong>Swelling Supply Glut Pulls Down Oil</strong><br />But the key action was in oil. Brent crude fell as low as $65.29 a barrel in Asian trade, its lowest since September 2009, on concern over a swelling supply glut.<br /><br />Brent, which has fallen some 40 per cent in the last six months, was last trading at $66.29 per barrel.<br /><br />European shares opened lower, following falls in stocks in Asia and on Wall Street on Monday.<br /><br />The pan-European Eurofirst 300 was down 1.3 per cent, hit by energy shares and after British grocer Tesco cut full-year profit expectations by almost a third.<br /><br />"European markets are trading lower and following the sell off on Wall Street, as oil prices continue to stay under pressure. Investors are worried that there is no floor in sight for the crushing oil prices." Naeem Aslam, analyst at Avatrade, said in a note.<br /><br />Tokyo's Nikkei stock index close down 0.7 per cent, pulling away from 7 1/2-year highs as the stronger yen prompted investors to take profits on exporters.<br /><br />In the United States, the S&P 500 suffered its worst day since Oct. 22 as the falling oil price hit energy stocks.<br /><br />Shanghai shares dropped more than 5 per cent, dragged down by the financial and property sectors, for their biggest one-day percentage fall since August 2009.<br /><br /><strong>Dollar Pullback</strong><br />The dollar fell 0.9 per cent to 119.62 yen, pulling away from a seven-year high of 121.86. The yen was up 1.1 percent against the commodity-linked Australian dollar, which earlier set a four-year low against the U.S. currency.<br /><br />"People are cutting the higher-yielding currencies which they've been funding through being short yen and that position is being reversed somewhat, which is manifesting itself in a much lower dollar/yen," said Neil Jones, head of FX hedge fund sales at Mizuho bank in London.<br /><br />The dollar had earlier gained on a Wall Street Journal report that Federal Reserve officials were considering dropping an assurance that short-term interest rates would remain near zero for "a considerable time" at its policy meeting on Dec. 16-17.<br /><br />The euro strengthened 0.3 percent to $1.2354 as the greenback dropped a similar amount against a basket of currencies.<br /><br />German 10-year government bond yields, the euro zone benchmark, fell 2.4 basis points to 0.70 percent, just above a record low.<br /><br />The weaker dollar pushed gold above $1,200 an ounce. It was last up 0.3 percent at $1,206.10.<br /><br />(Agencies)<br /> </div>
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