Europe stocks erase gains af­ter oil talks, yen re­bounds

The Pak Banker - - MARKETS/SPORTS -

Euro­pean stocks erased gains and oil trimmed its ad­vance as en­ergy min­is­ters from Saudi Ara­bia and Rus­sia ended talks on crude out­put. The yen re­bounded.

Shares in Europe were lit­tle changed af­ter Qatar En­ergy Min­is­ter Mo­ham­mad bin Saleh al-Sada said the min­is­ters agreed to freeze pro­duc­tion. Chi­nese shares ral­lied the most in three months as data showed new credit surged to a record in Jan­uary. Stan­dard & Poor's 500 In­dex fu­tures climbed 1.6 per­cent, while U.S. Trea­suries led de­clines in govern­ment bonds as trad­ing re­sumed af­ter a hol­i­day on Mon­day. The yen and euro strength­ened.

Crude'smore than 40 per­cent slide over the past year has re­strained growth in oil-rich emerg­ing coun­tries and height­ened sen­si­tiv­ity to any sign of will­ing­ness by Saudi Ara­bia, the de facto OPEC leader, to dis­cuss co­or­di­nated pro­duc­tion cuts. China's lend­ing data fol­lowed an ex­pres­sion of con­fi­dence in the econ­omy from cen­tral bank Gov­er­nor Zhou Xiaochuan over the week­end and re­as­sur­ances from Euro­pean Cen­tral Bank Pres­i­dent Mario Draghi on Mon­day that pol­icy mak­ers will act if fi­nan­cial tur­moil threat­ens price sta­bil­ity.

"Mar­kets need more than just a freeze in oil pro­duc­tion, they need a cut," said Ralf Zim­mer­mann, a strate­gist at Bankhaus Lampe in Dus­sel­dorf. "We've en­joyed a tac­ti­cal re­bound but most of the risk is still on the down­side. Peo­ple are look­ing at pol­icy mak­ers, be it cen­tral banks or OPEC, for more re­as­sur­ance be­cause ev­ery­thing boils down to what will hap­pen to global growth."

The Stoxx Europe 600 In­dex slipped 0.2 per­cent at 9:52 a.m. in Lon­don, af­ter climb­ing as much as 0.8 per­cent. The Shang­hai Com­pos­ite In­dex ad­vanced 3.3 per­cent. Brent for April set­tle­ment ad­vanced 1.7 per­cent to $33.94 a bar­rel, par­ing a 6.5 per­cent gain.

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