“The increasing intensity in supply-side disruptions in the oil market should see prices well supported in the short term”, ANZ said in a morning note Tuesday, adding that the rise in crude prices helped to boost commodities and commodity currencies overnight.
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“With oil prices being back up into that $US40 range, some of the downside that was associated with the energy market.is more subdued at these current prices, or at least held at bay, and the ripple effects from that are also held at bay”, said Jason Pride, director of investment strategy at Glenmede Investment and Wealth Management in Philadelphia. The benchmark Kospi average inched up 0.15 point or 0.01 percent to finish at 1,968.06 amid selling by foreign investors.
TECH GAIN: Agilent Technologies rose $1.40, or 3 percent, to $44.34 after the maker of scientific instruments reported second-quarter results that were better than expected.
The benchmark U.S. Treasury yield rose after matching a one-month low hit Friday and the dollar ticked lower, caught between a weaker yen and a stronger euro.
USA stock index futures were fell slightly on Tuesday, as oil prices gave back initial gains, while investors digested a rebound in Asian and European stock markets as well as Home Depot (HD)’s better-than-expected earnings. Marathon Oil climbed almost 5 percent and offshore driller Transocean rose 3.6 percent.
Oil prices hit six-month highs on Monday on global supply outages and long-time bear Goldman Sachs taking a more positive view on the market, although a stockpile build at the US storage hub for crude futures limited gains.
Image:A pedestrian holding her mobile phone walks past electronic boards showing the Japan’s Nikkei average (top L) and the Japanese yen’s exchange rate against the euro (top R) outside a brokerage in Tokyo, Japan, February 9, 2016.
China’s investment, factory output and retail sales all grew more slowly than expected in April, adding to doubts about whether the world’s second-largest economy is stabilizing, data released on Saturday showed. Sydney’s S&P-ASX 200 rose 0.6 percent to 5,358.90 and Tokyo’s Nikkei 225 added 0.3 percent to 16,466.40. The Dow is up 103.72 points or 0.6% at 17,639.04, the Nasdaq is up 34.72 points or 0.7% at 4,752.39 and the S&P 500 is up 11.78 points or 0.6% at 2,058.39. The Nasdaq composite gained 71 points, or 1.5 percent, to 4,789.
USA crude’s West Texas Intermediate (WTI) futures went up 1.1 percent to US$48.24, having risen 3.3 percent on Monday. Yahoo gained 2.7 per cent as people familiar with the matter said Berkshire chairman Warren Buffett is backing a group bidding for Yahoo’s internet assets. Industrial output, which includes output at factories, mines and utilities, rose 0.7 percent from March. Seven of the 10 sectors of the Standard and Poor’s 500 index are lower. The Nasdaq composite index lost 0.4 percent. Britain’s FTSE 100 gained 0.5 percent to 6,181. Germany’s market remained closed for the Whit Monday holiday.
USA stocks were poised for a subdued open, with Dow and S&P 500 futures both flat. Brent crude, which is used to price worldwide oils, slipped 1 cent to $48.96 per barrel in London.
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In other energy markets, Brent crude, used to price global oils, slipped rose $1.14, or 2.4 percent, to $48.97 a barrel in London.
