While you were sleeping: Oil continues to push stocks up
Oil rises to highest level since October last year.
Stocks in the US and Europe rose for the second consecutive session, boosted by energy and financial shares.
On Wall Street, the Dow industrials and S&P 500 have risen more than 2% since last Thursday as oil prices approach $US50 a barrel.
At the close, the Dow Jones Industrial Average gained 145.46 points, or 0.8%, to 17,851.51. The S&P 500 and the Nasdaq Composite both rose 0.7% to 4894.89 and 2090.54 respectively.
Energy stocks notched some of the biggest gains in the S&P 500 as US crude oil rose 1.9% to $US49.56 a barrel, the highest settlement since October 9.
Shares in Transocean, which provides offshore contract drilling services for energy companies, rose 9.7%. Chesapeake Energy shares rose 7.4%.
Shares of banks and other financial firms continued to rally, reflecting investors’ heightened expectations for interest-rate increases this year.
The S&P 500’s financial sector rose 1% to reach its highest level this year,
Gold for May delivery slipped 0.4% to $US1223.50 an ounce.
European markets rise
The Stoxx Europe 600 climbed 1.3% to its highest close since April 28.
Eurozone finance ministers and the International Monetary Fund reached a deal that clears the way for fresh loans for Greece and prevents the country from defaulting on big debt redemptions in July.
In Asia, Japan’s Nikkei Stock Average added 1.6% and Hong Kong’s Hang Seng Index gained 2.7%, bolstered by the rise in oil prices and strong finish on Wall Street.
Shares in Shanghai ended slightly lower, however, after China guided the yuan to its weakest level against the dollar in more than five years.
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Nevil Gibson
Thu, 26 May 2016
Thu, 26 May 2016
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While you were sleeping: Oil continues to push stocks up
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