Chevron and Exxon Mobil each jumped 5 percent, by far the biggest gains in the Dow Jones industrial average.
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U.S. stocks have been retreating in the first two weeks of 2016, now averaging at 12% (S&P 500) below their May records highs (posting a massive 8% slide in just past two weeks). But this is the second time in only a matter of months that America’s major market indexes like the Dow and S&P 500 have been plunged into correction.
European stocks fell, snapping a two-day rebound, amid renewed concern about global-growth prospects. Energy firms are laying off workers and currency markets from commodity- producing countries are in turmoil. The slump is also denting the outlook for inflation around the world, causing traders to curb bets on how far the Federal Reserve will raise interest rates this year. ASX futures were 87 points or 1.8 per cent lower at the closing bell in NY. The price of oil fell again, hovering slightly above $30 per barrel. “Now we’re probably going to see the market go the other way”.
“The market is still weighed down by the weak economy and yuan depreciation”.
The Nikkei 225 in Japan was down about 2.7 percent and Hong Kong’s Hang Sang was lower by 0.5 percent in midday trade.
BlackRock CEO and Chairman Laurence Fink in a Friday appearance on CNBC’s “Squawk Box” characterized the current financial conditions as “a real market decline, bordering on a bear market”.
Burberry also gained after its quarterly comparable revenue beat estimates. Antonin Jullier, Citigroup Inc.’s global head of equity trading strategy, recommends buying the region’s equities after recent lows and riding the rebound before cashing in.
Shares of Apple rose 1.5 percent on a broker upgrade, underpinning the broader market. US crude has fallen 17 percent in just seven sessions, a gift to consumers across the globe but also a strong force for disinflation.
New Zealand shares followed Wall Street higher, with the benchmark climbing 59.80 points or 0.98 percent to close at 6,169.09, led by gains in Spark New Zealand, which soared 2.9 percent to hit a six-week high. Yields on 10-year paper fell 6 basis points to 2.10 percent having touched a 10-week low. U.S.-produced crude was trading down $1.71, or 5.5%, to $29.49.
Looking ahead, an analyst said Asian markets will soon recover from the shock of the Jakarta attacks, but low oil prices will continue to be a drag on sentiment.
While data showed US crude inventories rose 234,000 barrels last week, less than expected, it was overshadowed by a reportedly massive build-up in gasoline at 8.4 million barrels and over 6 million in distillates, which includes diesel and heating oil.
The Bloomberg Commodity Index, which measures returns on 22 raw materials, dropped 1.2 percent. China’s Shanghai Composite Index started the trading session in the green as the yuan stabilised for the third straight day.
The Shanghai Composite index sank 3.6 percent on Friday, extending losses after a report that some banks in Shanghai have halted accepting shares of smaller listed companies as collateral for loans. Brazil’s Ibovespa slid 2 percent.
In South Korea, the benchmark Kospi index was up 0.1% to 1,902.39 points.
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Shares Daimler were down around 1.9 percent, BMW 2.6 percent and Volksagen 3.5 percent in Frankfurt. Core machinery orders are an indicator of capital spending in the country and fell by 7.9% which is more than the expected drop.
