MercoPress. South Atlantic News Agency

Oil glut and China's poor manufacturing data reflected in global markets

Crude prices are now on course for their weakest 3Q performance since the financial crisis in 2008. Iran's planned increased output also weighed on markets

United States stocks fell on Monday as oil prices touched a six-month low and factory data from China raised concerns about the world's second-biggest economy. Energy stocks were the biggest losers among the main S&P sectors, recording their worst three-day decline in seven months. Exxon Mobil and Chevron, which also reported poor results on Friday, led the losses.

 Oil prices fell on fresh evidence of growing oversupply and data highlighting slowing demand in China. Crude prices are now on course for their weakest third-quarter performance since the financial crisis in 2008.

The recent agreement on nuclear power reached by the five powers and Iran also anticipates that Teheran is preparing to pump and put in the market, half a million barrels per day, and a few months later, a million bpd, until it reaches its output before the sanctions.

In US data, consumer spending recorded its smallest gain in four months, while the pace of growth in the manufacturing sector slowed in July.

China's factory activity shrank more than initially estimated last month, according to a survey. Concerns about China's economy hurt US industrial stocks as well as Apple , which relies on that country for much of its iPhone sales.

A report from market research firm Canalys showed Apple lost some smartphone market share in China in the second quarter and its stock was down 2.23%, weighing most on the Nasdaq and the S&P 500.

The Dow Jones industrial average was down 0.99% at 17,514.92. The S&P 500 lost 0.69% to 2,089.29 and the Nasdaq Composite dropped 0.64% to 5,095.24.

Nine of the 10 major S&P sectors were lower, with the utilities index the lone gainer.

European shares rose, shrugging off a slump for the Greek stock market when it reopened after a five-week shutdown, as strong results from Heineken and banks supported the broader market.

The pan-European FTSEurofirst 300 index rose 0.7% to 1,583.52 points. The euro zone's blue-chip Euro STOXX 50 index gained 1%, Germany's DAX advanced 1.2% and France's CAC 0.8%.