United States stocks have closed mostly higher, led by gains in energy, mining and financial companies. Earlier, both prices had been even lower, with US crude down 7% at one point.
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NICE DRIVE: General Motors rose 1.6 percent after the automaker said its profit more than doubled, thanks partly to strong demand in North America.
MSCI’s All Countries World Index, which tracks shares in 45 countries, was up 0.9 percent by midday in NY and hit its highest level since December, while European stocks closed up 1.5 percent.
The Dow Jones Industrial Average (NYSEARCA:DIA) climbed 0.3% to reach its highest level since July. South Korea’s Kospi finished at 2,011.36, up 0.1 percent, while Hong Kong’s Hang Seng index gained 1.3 percent to 21,436.21.
The pan-European FTSEurofirst 300 index rose 1.5 per cent to its highest closing level since January 6.
The S&P 500 and the Dow gave up early gains on Tuesday, but were still within shouting distance of their record highs, as investors assessed weak earnings reports by IBM and Netflix.
Oil prices had rallied in recent weeks on speculation that a deal might be struck among large producing nations including Saudi Arabia and Russian Federation.
Beleaguered crude oil futures found a bottom after plunging as talks broke down in Doha over the weekend, where producers had hoped to curb a supply glut. Mining and energy stocks were among the biggest gainers as the price of oil rebounded. Brent crude, the worldwide benchmark, slipped 60 cents to $43.43 a barrel in London.
Hess rose 2.67 dollars, or 4.7% to 59.84 dollars, while Marathon Oil added 35 cents, or 2.7%, to 13.36 dollars. Consumer Discretionary was the strongest of the 10 S&P 500 sectors followed by healthcare.
United Continental (UAL) is leading the sector lower after reporting better than expected first quarter earnings but forecasting a drop in passenger revenue per available seat mile in the second quarter.
The major USA indices have soared since the February 11 low and are now just trading below resistance, in other words, all-time highs.
OVERSEAS: Germany’s DAX rose 0.3 per cent, while the CAC-40 in France edged up 0.4 per cent. Britain’s FTSE 100 index was up 0.1 per cent. The index was up 0.41% to 2,109.39 points at the time of this writing around 3:09 in the afternoon in NY.
Japan’s Nikkei 225 rose 0.2 percent to 16,906.54 and the Australian S&P/ASX 200 added 0.5 percent to 5,281.20. But the subsequent rise in oil prices following USA inventory data saw European stocks push ahead. Dow components Chevron Corp (CVX) and Exxon Mobil Corp (XOM) rose 1.5% and 1%, respectively. Energy was up 1.30 percent.
Precious and industrial metals futures ended narrowly mixed. The oil prices increase amid the reduction of output in the USA and speculations that OPEC producers will meet next month.
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The dollar has declined by almost 10% against the yen this year, weighing on Japanese exporters and causing Bank of Japan Governor Haruhiko Kuroda to hint at the possibility of further stimulus measures in a recent Wall Street Journal interview.
