Wall Street pulls out of global slump as oil ral­lies

The Pak Banker - - MARKETS/SPORTS -

Wall Street stocks pulled out of a global slump amid spec­u­la­tion that China will add stim­u­lus to boost its slow­ing econ­omy and as oil prices re­bounded from steep falls. US stocks opened lower, echo­ing falls in Europe and Asia, on con­tin­ued con­cerns about global growth re­flected in de­clin­ing prices for oil and other com­modi­ties. "Stocks made a low in the first half of the day and then came back nicely. There was a lot of talk of maybe ad­di­tional China stim­u­lus. Whether the story is true or not, I don't know, but if it isn't the mar­ket will back down in a day or two," said Mace Blick­sil­ver of Mar­ble­head As­set Man­age­ment.

Oil prices sta­bi­lized, with both US and Brent clos­ing mod­estly higher fol­low­ing Tues­day's losses of more than four per­cent. A mixed US pe­tro­leum re­port showed com­mer­cial crude in­ven­to­ries climbed last week, but gaso­line stock­piles fell more than ex­pected. En­ergy-re­lated stocks turned higher. Dow oil ma­jors ExxonMo­bil and Chevron both rose 0.4 per­cent. Euro­pean mar­kets sold off, with shares in Frank­furt lead­ing the pack, drop­ping more than 2.6 per­cent, af­ter a ses­sion that also saw pe­riph­ery coun­ter­parts Madrid and Mi­lan shed more than three per­cent at one point.

Over­hang­ing eu­ro­zone mar­kets was un­cer­tainty over which way Bri­tish vot­ers will jump in a loom­ing ref­er­en­dum on Euro­pean Union mem­ber­ship weighed on mar­kets and will likely do so for some time, an­a­lysts said.

"Eu­ro­zone indices are go­ing to suf­fer un­der the same Brexit fears cur­rently plagu­ing the pound and the FTSE," said Con­nor Camp­bell, fi­nan­cial an­a­lyst at Spreadex trad­ing group, re­fer­ring to a pos­si­ble exit by Bri­tain from the EU.

The pound slumped to $1.3913 at one point -- the low­est level since March 2009 -- be­fore re­cov­er­ing a bit at $1.3926 by the end of the ses­sion. An­a­lyst John Hig­gins, of Cap­i­tal Eco­nom­ics, said un­cer­tainty was key and would con­tinue plagu­ing the Bri­tish cur­rency un­til the June 23 ref­er­en­dum.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.