Stocks, oil surge ahead of Opec meet
LONDON: European and US stock markets mostly pushed higher on Thursday, as growing economic optimism topped concerns over the rapidly spreading Delta Covid variant.
The price of New York crude oil spiked above $75 for the first time since late 2018, as Opec and other major producers held a key meeting at which they were expected to lit output in the face of resurgent demand.
Weekly initial US jobless benefits claims fell below 400,000 to a pandemic-era low, which helped the S&P 500 set a new record high for the sixth-straight trading session. The blue-chip Dow was up 0.3 per cent in late morning trading, while the tech-heavy Nasdaq Composite slipped 0.3 per cent.
Meanwhile in Europe, London equities gained 0.6 per cent as Japanese car maker Nissan announced a £1.0-billion ($1.4-billion, 1.2-billion-euro) investment in a new UK electric car batery factory.
Frankfurt climbed 0.5 per cent and Paris rose 0.7 per cent on upbeat unemployment and manufacturing data.
The virus is seeing sharp spikes across the world, with Australia shuting down four major cities and numerous countries imposing tough restrictions including South Africa, parts of Asia, South America and Europe. Asian indices struggled Thursday with investors keeping a close eye on the Delta variant, which has raised concerns about the strength of global economic recovery.
Upcoming US jobs data is also in view, with a forecast-beating jump on private employment liting hopes for a strong reading that will solidify optimism about growth in the world’s top economy.
Traders digested data showing private firms added 692,000 jobs in June, a big drop from the month before but well above expectations. The report added to a recent run of figures showing strong consumer confidence, rising home prices and positive corporate earnings.