Business Commodity Stock Market

Global Stocks Rise As Oil Steadies

Global Stocks Rise As Oil Steadies
AFP/File / Eric Piermont The key Paris index CAC 40 broke through the key 4,700 level in late business as European stock markets rose on steadier oil prices

New York (AFP) – Global stocks pushed higher Tuesday as a rally in oil prices lifted investor sentiment ahead of the final two trading sessions of 2015.

Gains in Paris and Frankfurt approached two percent, while the broad-based S&P 500 climbed 1.1 percent.

The moves marked a turnaround from Monday, when lower oil prices weighed on stock buying. The US rally was also propelled by data showing stronger consumer confidence and home-price gains.

“The market’s demonstrating its underlying strength,” said Michael James, managing director of equity trading at Wedbush Securities. “Investors are determined to end the year on a positive note.”

Tuesday’s gains lifted the S&P 500 back into positive territory for the year, with two final trading days yet to come.

“Thin trading volumes appear to be enhancing whatever nascent positive sentiment there is in the eurozone, allowing the DAX and CAC to stretch out their legs,” said analyst Connor Campbell at trading firm Spreadex.

London’s FTSE 100 tacked on 1.0 percent as some analysts warned of the economic drag from a wave of freak flooding across northern England.

“There’s a genuine concern that the devastating floods that have caused havoc across the North of England could have a meaningful impact on economic growth, which in turn may translate into interest rates staying lower for longer,” said Tony Cross, market analyst at Trustnet Direct.

But shares of homebuilders Persimmon and Taylor Wimpey jumped 3.4 percent and 3.6 percent on expectations the natural disaster could translate into more construction.

In Tokyo, Toshiba gained 2.7 percent as the crisis-hit firm’s chief executive told the Sankei daily that he wants to sell off its home appliances and personal computer divisions.

The stock was hammered last week as Toshiba rolled out a wide-ranging restructuring that included thousands of job cuts, and warned it would book a record $4.5 billion annual loss. The announcement came in the wake of an embarrassing profit-padding scandal.

In the US, large technology stocks led the market higher, with online retailer Amazon jumping 2.8 percent to a new all-time high after announcing record holiday subscriptions to its premium delivery and video streaming service.

Other large technology companies, including Apple and Google parent Alphabet, also posted impressive gains.

DuPont rose 1.7 percent as it announced plans to cut 1,700 jobs from its US headquarters in ahead of its planned merger with Dow Chemical. Dow rose 2.0 percent.

– Key figures around 2200 GMT –

New York – Dow: UP 1.1 percent at 17,720.98 (close)

New York – S&P 500: UP 1.1 percent at 2,078.36 (close)

New York – Nasdaq: UP 1.3 percent at 5,107.94 (close)

London – FTSE 100: UP 1.0 percent at 6,314.57 points (close)

Paris – CAC 40: UP 1.8 percent at 4,701.36 points (close)

Frankfurt – DAX 30: UP 1.9 percent at 10,860.14 (close)

EURO STOXX 50: UP 1.8 percent at 3,314.28 (close)

Tokyo – Nikkei 225: UP 0.6 percent at 18,982.23 (close)

Euro/dollar: DOWN at $1.0921 from $1.0970 late Monday

Dollar/yen: UP at 120.47 yen from 120.38 yen

Add Comment

Click here to post a comment