SPDR S&P Retail (XRT) is down 41.6% year-to-date.
The Bank of England is warning about the risk of deflation because of the stunted global growth, and oil responded by dropping to $57 per barrel. Oil prices have plunged more than 60% in four months, falling from a record $147.27 in July, reports Dirk Lammers for Associated Press.
Since crude is bought and sold in dollars, when the dollar rises against foreign currencies, investors often buy the greenback and sell oil.
One analyst reports that investors are adjusting to a new reality that involves a slowing global economy with a strong dollar, weak commodities and a fear of deflation, or a general decline in prices. If global growth wanes, the demand for gas and other crude products will, too. The commodities are experiencing the boom-bust cycle right now, so insiders are trying to keep consumers from panicking.
United States Oil (USO) is down 36.5% year-to-date and is 59% off its July 14 high.
