Europe stocks expected to plunge on oil turmoil

European equities are expected to fall at the open on Wednesday as the turmoil in global oil markets continues.

Falling oil prices continue to weigh on global equity markets. On Tuesday, the commodity hit a near six-year low, extending losses after trading lower for seven straight weeks.

U.S. crude settled down 18 cents at $45.89 a barrel, its lowest level since April 2009, while Brent crude was down $1 at $46 a barrel. So far this week Brent is down 8 percent and U.S. crude down about 5 percent. Copper prices have also hit an over five-year low as the investment in commodities falls.

An oil minister from the Organization of Petroleum-Exporting Countries (OPEC) reiterated on Tuesday that the group would not be changing its production strategy.

In other news, the World Bank on Tuesday lowered its global growth forecasts for 2015 and 2016 due to disappointing economic prospects in the euro zone, Japan and some major emerging economies that offset the benefit of lower oil prices.

 Varchev Traders

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