European indices extend their decline for the second consecutive day together with falling Oil prices and weak earning data from British Petroleum (BP), the U.K.’s biggest Oil producer.

BP’s shares plunged by almost 8% as the company has reported a yearly loss of $6.5B in 2015, which is the worst performance in almost 20 years. BP is being heavily affected by a collapse in the Oil market as the company was carrying out an aggressive expansion strategy in the pre-crisis period, hoping for a further increase of Oil prices.

FTSE100 index has dropped by 1.8%, BP and Anglo American are among the worst performers as well as other commodity producers.

Chinese stocks traded in green today as gains of small cap firms compensated for the poor performance of the large ones. CSI rose by 2.1% to 2,961.33, Shanghai Composite grew by 2.3% to 2,749.57 points, Hang Seng dismissed a surge of mainland indices and fell by 0.76%.

WTI futures dropped by 3.29% on fears of increasing global surplus. The pumping levels are at their all–time highs both in OPEC and non-OPEC countries. Meanwhile China’s demand continues to shrink.

Brent prices depreciated by 3.12%.

Reserve Bank of Australia decided to team up with the QE pursuers and left interest rates untouched at 2%, stating that further easing is possible. AUD responded with a drop against the majors, AUD/USD is down by 0.90%, NZD/USD dropped by 0.93%.

“Over the period ahead, new information should allow the board to judge whether the recent improvement in labor market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand,” the RBA stated in the commentary.

USD/RUB couldn’t resist the heavy sell-off caused by a drop in Oil prices and broke the 79 level.

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