Oil prices plunged on Monday after talks in Doha, Qatar, between major producers to limit global production failed completely due to Saudi Arabia's insistence that Iran joins in, or it will not join. Iran believes it has a bigger market share after the lifting of sanctions.
Brent crude futures tumbled $1.80, or 4.22% to trade at $41.26 a barrel, while U.S. West Texas Intermediate (WTI) crude futures sank below the psychological level of $40 again, trading last at $39.80 a barrel, down $1.90 on the day, or 4.63%.
Asian shares registered wide losses after the gloomy events, with China's Shanghai index giving up 1.60%, while Australian shares fell 0.36%. Japan's Nikkei was additionally hit by worries over recent earthquakes in the country and their affect on manufacturing, with the index plummeting 3.40%.
Safe havens had a field day, feeding off investors' current anxiety, with Japan's yen surging 0.75% against the dollar to trade at 107.95, while gold futures advanced over three dollars, or 0.26% to hover around $1,237 an ounce. Silver lost ground however, dropping 0.66% to $16.20 an ounce.
Not a lot of data is awaited today, with America's NAHB Housing Market Index expected to inch up to 59 in April, compared to March's 58 reading, which would reinforce the strength of the housing sector in the world's largest economy.