Asian markets traded broadly positive today as the oil prices climb north. A brief rally in equities last week also helped to calm the sentiment, yet there remains doubt on future trajectory, said an analyst at Citigroup.
Output freeze impact
In connection with the oil price rise, Macquarie Group analysts commented that the output freeze might not fix the oversupply situation in the short-term, but the development has its positives over the medium term.
In today’s momentum, China took the lead as Shanghai SE Composite finished the day 2.35% higher at 2,927.18. Australia ASX followed, closing 0.96% higher at 5,056.60 while Hang Seng settled 184.02 points up at 19,469.52. Japan’s Nikkei 225 added up 143.88 points too 16,111.05 and Taiwan TSEC 50 traded flat, reporting a marginal gain of 0.02% to 8,326.68.
Euro gains on commodity rebound
Meanwhile, the European Markets opened on the right foot, taking cues from Asian markets. The rebound in oil prices, as well as other commodities, has played a role in the market’s upbeat momentum. Mining stocks became the top sectoral gainers and majorly pushed the indices up. Germany’s Dax added the most, registering 1.68% gain to 9,545.56. France’s CAC 40 surged 1.60% to 4,290.55 and Euronext 100 posted a gain of 1.53% to 842.18. Both FTSE 100 and Swiss Market Index inched up by 1.21% and 1.45% respectively.
It appears that London Mayor, Boris Johnson’s Brexit declaration will weigh over the markets and Pound throughout the day. It should be noted that Sterling has already touched 2010 lows thus far.
Back in the U.S., the stock markets closed on a mixed note as participants tried to move past the decline in oil prices. Market experts appeared contended with the direction of the markets, which limited its downside against the degree in oil price fall. The analysts see it as an encouraging sign that the markets are distancing itself from oil trading, which is crucial to maintaining sustainable rally.
Dow Jones Industrial Average closed the last session 0.13% lower at 16,391.99. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) traded flat to 1,917.78 during the previous day.