The Mercury

Oil gains lift stocks around the world

Dollar weak ahead of meeting

- James Regan and Kelly Gilblom

STOCKS rose around the world, buoyed by gains in commoditie­s prices, and the dollar weakened before a central bank policy meeting this week.

The Stoxx Europe 600 index gained the most in more than two weeks. Crude rebounded from a one-month low as fighting disrupted supplies from Libya, boosting the currencies of oil-exporting nations.

Yuan borrowing costs in Hong Kong soared amid speculatio­n China’s central bank was intervenin­g to fend off bearish currency bets.

Hungary’s stocks and bonds advanced after the nation was raised to investment grade by S&P Global Ratings.

Major oil producers will meet next week in Algiers to discuss co-operating to shore up prices amid a global oversupply that has hurt state budgets.

Before that, the Bank of Japan (BOJ) will undertake a review of its monetary policy and the Federal Reserve will meet to determine whether to raise rates.

Volatility has picked up in financial markets over the past two weeks amid concern central banks are becoming reluctant to loosen monetary policy.


“Sentiment is being boosted by a rebound in oil,” said Vasu Menon, the vice-president for wealth management research at Oversea-Chinese Banking Corporatio­n in Singapore.

“Investors are also hoping the BOJ will do something more dramatic, though I don’t think that’s going to make a lot of difference.”

The MSCI all-country world index climbed 0.4 percent at 7.36am in New York as US crude added 1.5 percent to $43.66 (R617.68) a barrel. The Bloomberg dollar spot index declined 0.3 percent.

The Stoxx Europe 600 index climbed 1 percent after its biggest weekly slide in three months. Rio Tinto Group and BHP Billiton rose at least

2.8% Rise in Taiwan’s Taiex index, leading emerging shares up

3.2 percent, contributi­ng the most to gains among mining companies. Total and BP were among those that led oil-related stocks higher.

HSBC Holdings was among banks that gained the most. Deutsche Bank, which sparked a sell-off on Friday after rebuffing a US Justice Department claim to settle a probe tied to mortgage-backed securities, bucked the trend yesterday, falling as much as 2.6 percent.

Emerging-market shares and currencies rallied with developed markets, led by a 2.8 percent gain in Taiwan’s Taiex index and a 0.8 percent advance in Taiwan’s dollar. HTC surged 10 percent in Taiwan, the biggest gain since May 25, on reports that the company will unveil a new cellphone handset.

The MSCI emerging markets index rose 1.3 percent, heading for the biggest one-day gain in almost two weeks.

Oil rose as renewed clashes halted what would be the first crude shipment from one of Libya’s largest export terminals since 2014.

The tanker Seadelta suspended loading after fighting started on Sunday between local Petroleum Facilities Guard units and forces loyal to eastern-based military commander Khalifa Haftar. Brent added 1.3 percent to $46.35.


Opec may call an extraordin­ary meeting if ministers reach consensus at an informal gathering next week, secretaryg­eneral Mohammed Barkindo said, according to the Algerian Press Service.

Nickel rebounded from the biggest weekly slump in ten months after the Philippine­s said more mine closures were possible. The metal used in stainless steel gained 2.1 percent to $9 930 a ton.

Copper dropped 0.8 percent, declining from a fourweek high as Anglo American restarted operations after a strike at its Los Bronces mine in central Chile, bolstering supply from the world’s largest producer. Gold climbed 0.6 percent to $1 317.80 an ounce and silver jumped 1.8 percent. – Bloomberg

 ??  ?? A zoomed image shows a screen displaying the evolution of the main Spanish market index IBEX35 at Madrid’s Stock Echange, in Madrid, Spain. The Stoxx Europe 600 index climbed 1 percent yesterday.
A zoomed image shows a screen displaying the evolution of the main Spanish market index IBEX35 at Madrid’s Stock Echange, in Madrid, Spain. The Stoxx Europe 600 index climbed 1 percent yesterday.

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