Global Stocks Fall as Oil Trades Near Four-Year Low BOUNCE UP GOLD

Shares of energy producers led global equities lower after oil tumbled to a four-year low on OPEC’s refusal to ease a supply glut. Bonds advanced, setting record-low yields from Japan toGermany, and the dollar gained.

The MSCI All-Country World Index fell 0.2 percent at 8:06 a.m. in New York as the Stoxx Europe 600 Index lost 0.4 percent. Total SA and Royal Dutch Shell Plc lost more than 2 percent as Brent crude headed for its biggest weekly decline since 2011. Standard & Poor’s 500 Index futures dropped 0.1 percent as U.S. markets reopen after the Thanksgiving holiday. Treasuries rose, Japan’s two-year rates turned negative for the first time and Germany’s 10-year yield declined to 0.694 percent. The Bloomberg Dollar Spot Index climbed to a five-year high, while gold and silver slid for a third day.

The Organization of Petroleum Exporting Countries kept its production ceiling unchanged, underscoring the price war in the crude market and challenge to U.S. shale drillers. The rout in oil is damping inflation, with price growth slowing in Japan and Germany and already negative in Spain. A report today showed euro-areaconsumer prices were at a five-year low. European Central Bank President Mario Draghi signaled yesterday he is open to expanding asset purchases to stave off deflation.

“OPEC’s decision yesterday came as a surprise when looking at the market reaction and made investors more cautious,” said Tobias Britsch who helps oversee about $30 billion at Meriten Investment Management GmbH, in Dusseldorf, Germany. “This could hurt a year-end rally. I would not touch oil and gas stocks as it’s far too risky now. Lower energy prices could put some pressure on euro-area inflation, and the ECB might need to go for full QE.”