The Organisation of the Petroleum Exporting Countries' (OPEC) decision to cut production in a bid to support oil prices has so far not had the desired effect.
Crude oil continues to stick around the $40 mark with traders concerned the cartel will not be able to reduce production quickly enough.
The Dow Jones closed last night down 1.12% having recapped some of its morning loses to hover flat for most of the afternoon.
The Nasdaq shed 17.38 points to 1,572.51. Apple was among the losers with shares down 6.3% after its downgrade by Oppenheimer.
In the UK, the FTSE 100 opened slightly lower this morning as a rise in defensive stocks was outweighed by a fall in British Airways, which fell 4.36% after admitting merger talks with Qantas had stalled.
Insurer Friends Provident also fell by 4.47% and London Stock Exchange was down by 2.94% in early trading.
However, pharmaceutical and other defensive stocks made gains. Shire rose 2.4%, British American Tobacco was up 2.4% and AstraZeneca was 2.02% higher.
The FTSE 250 was up over 1% by 10.20am with Sports Direct rising over 9% despite announcing it would cut dividends by up to 40% - the company is still on target to hit profit targets before tax.
However, Savills which has also announced it may cut in dividends, has seen a decline this morning of over 9%.IFAonline
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