Monday, October 23, 2017
Close  

Global stocks hit records as oil prices rally

  • share this

Global stocks hit records as oil prices rally

/ 08:53 AM May 16, 2017
An oil pump works at sunset Monday, Jan. 18, 2016, in the desert oil fields of Sakhir, Bahrain. Iran is aiming to increase its oil production by 500,000 barrels per day now that sanctions have been lifted under a landmark nuclear deal with world powers, a top official said. (AP Photo/Hasan Jamali)

An oil pump works at sunset Monday, Jan. 18, 2016, in the desert oil fields of Sakhir, Bahrain. AP

NEW YORK, United States — Equity markets in Frankfurt, London and New York ended at fresh records Monday, lifted by a rally in oil prices that boosted energy shares and by upbeat German election news.

World oil prices leapt after oil ministers from Saudi Arabia and Russia — the world’s two biggest oil producing nations — declared Sunday that they would consider extending an output cut into 2018.

That gave a boost to petroleum producers such as Royal Dutch Shell and Chevron. Mining stocks, which have heavy representation in the FTSE 100, also rose.

ADVERTISEMENT

“We are seeing finally some rebound in the oil prices and that is definitely helping the energy sector,” said Nicholas Colas, chief market strategist at Convergex, a brokerage firm.

“There has been a lot of worry about energy and how oil prices do not seem to have found a bottom, but this news from Saudi Arabia and Russia that seems to be helping.”

The strong gain in oil prices let investors overlook other worries, including “heightened geopolitical concerns toward North Korea, a global cyberattack over the weekend, and more disappointing Chinese economic data,” said a market note from Charles Schwab.

In morning trade, the British capital’s benchmark FTSE 100 index hit an all-time peak at 7,460.20 points. It ended the day at a record closing level of 7,454.37.

Both the S&P 500 and Nasdaq jumped 0.5 percent to fresh all-time highs, with the S&P 500 ending at 2,402.32, and the Nasdaq 6,149.67.

Frankfurt’s DAX 30 was catapulted to a new pinnacle at 12,832.29 points, partly on relief over Chancellor Angela Merkel strong win in a regional vote in Germany’s biggest state. It finished the day with a record close at 12,807.04.

China investment

China hosted Sunday an international summit showcasing its Silk Road infrastructure project that it hopes will revive ancient trading routes and breathe life into the world’s number two economy, which grew last year at its slowest pace in a quarter of a century.

Chinese President Xi Jinping pledged to pump an extra $124 billion (114 billion euros) into the China-bankrolled project, which involves a huge network of ports, railways, roads and industrial parks.

ADVERTISEMENT

Most Asian markets rose Monday, with Hong Kong achieving a sixth successive gain.

Hong Kong closed up 0.9 percent at levels not seen since mid-2015, while Shanghai edged up 0.2 percent — a third straight win.

Seoul added 0.2 percent as investors ignored another missile test by North Korea.

However, Tokyo ended 0.1 percent lower on the back of a stronger yen, which hurts Japanese exporters.

Back in China, official data showed output from the country’s factories and workshops slowed more sharply than expected in April, while retail sales were below par. CBB

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, oil, oil cuts, oil prices, Russia, Saudi Arabia, stocks
For feedback, complaints, or inquiries, contact us.




© Copyright 1997-2016 INQUIRER.net | All Rights Reserved