Global stocks hit records as oil prices rally

  • Posted at: 17 May, 2017, in Business

NEW YORK: Equity markets in Frankfurt, London and New York ended at fresh records Monday, lifted by a rally in oil prices that boosted energy shares and by upbeat German election news.World oil prices leapt after oil ministers from Saudi Arabia and Russia — the world’s two biggest oil producing nations — declared Sunday that they would consider extending an output cut into 2018.That gave a boost to petroleum producers such as Royal Dutch Shell and Chevron. Mining stocks, which have heavy representation in the FTSE 100, also rose.“We are seeing finally some rebound in the oil prices and that is definitely helping the energy sector,” said Nicholas Colas, chief market strategist at Convergex, a brokerage firm.“There has been a lot of worry about energy and how oil prices do not seem to have found a bottom, but this news from Saudi Arabia and Russia that seems to be helping.”The strong gain in oil prices let investors overlook other worries, including “heightened geopolitical concerns toward North Korea, a global cyberattack over the weekend, and more disappointing Chinese economic data,” said a market note from Charles Schwab.In morning trade, the British capital’s benchmark FTSE 100 index hit an all-time peak at 7,460.20 points. It ended the day at a record closing level of 7,454.37.Both the S&P 500 and Nasdaq jumped 0.5 percent to fresh all-time highs, with the S&P 500 ending at 2,402.32, and the Nasdaq 6,149.67.Frankfurt’s DAX 30 was catapulted to a new pinnacle at 12,832.29 points, partly on relief over Chancellor Angela Merkel strong win in a regional vote in Germany’s biggest state. It finished the day with a record close at 12,807.04.– China investment –China hosted Sunday an international summit showcasing its Silk Road infrastructure project that it hopes will revive ancient trading routes and breathe life into the world’s number two economy, which grew last year at its slowest pace in a quarter of a century.Chinese President Xi Jinping pledged to pump an extra $124 billion (114 billion euros) into the China-bankrolled project, which involves a huge network of ports, railways, roads and industrial parks.Most Asian markets rose Monday, with Hong Kong achieving a sixth successive gain.Hong Kong closed up 0.9 percent at levels not seen since mid-2015, while Shanghai edged up 0.2 percent — a third straight win.Seoul added 0.2 percent as investors ignored another missile test by North Korea.However, Tokyo ended 0.1 percent lower on the back of a stronger yen, which hurts Japanese exporters.Back in China, official data showed output from the country’s factories and workshops slowed more sharply than expected in April, while retail sales were below par.– Key figures around 2100 GMT –

New York – Dow: UP 0.4 percent at 20,981.94 (close)New York – S&P 500: UP 0.5 percent at 2,402.32 (close)New York – Nasdaq: UP 0.5 percent at 6,149.67 (close)London – FTSE 100: UP 0.3 percent at 7,454.37 points (close)Frankfurt – DAX 30: UP 0.3 percent at 12,807.04 (close)Paris – CAC 40: UP 0.2 percent at 5,417.40 (close)EURO STOXX 50: FLAT at 3,637.56Tokyo – Nikkei 225: DOWN 0.1 percent at 19,869.85 (close)Hong Kong – Hang Seng: UP 0.9 percent at 25,371.59 (close)Shanghai – Composite: UP 0.2 percent at 3,090.23 (close)Euro/dollar: UP at $1.0977 from $1.0931 at 2100 GMTDollar/yen: UP at 113.75 yen from 113.33 yenPound/dollar: UP at $1.2897 from $1.2884Oil – Brent North Sea: UP 98 cents at $51.82 per barrelOil – West Texas Intermediate: UP $1.01 at $48.85 per barrel – AFP