Saudi Oil Minister Ali Al-Naimi said at a conference in Abu Dhabi at the weekend that... Read More
The MSCI All-Country World Index rose 0.3 percent at 10:56 a.m. in London, and the Stoxx Europe 600 Index added 0.6 percent. Standard & Poor’s 500 Index futures climbed 0.2 percent. The ruble surged 3.4 percent in Moscow as crude rose for a second day, while the cost of credit-default swaps insuring Russian sovereign debt fell for a fourth day. The yen slid 0.3 percent and the rate on German two-year notes fell to minus 0.096 percent. Natural gas retreated to a 16-month low.
Saudi Oil Minister Ali Al-Naimi told a conference in Abu Dhabi over the weekend he is confident crude prices will rebound as demand recovers. The U.A.E’s energy minister called on producers outside OPEC to cut their “irresponsible” output. Data today may show a pullback in U.S. home sales while figures tomorrow may indicate U.S. economic growth was faster than initially estimated last quarter.
“The fact that oil has stabilized is giving stocks a little room to move higher,” Jasper Lawler, a market analyst at CMC Markets Plc in London, said by telephone. “Even though
many people viewed lower oil prices as a net positive for the economy, there were certain areas of the economy that were over-leveraged and that raised some concerns. In Europe, stocks haven’t regained what they lost.”
The MSCI All-Country World Index rallied, with energy companies heading for their biggest five-day gain in six years. The gauge of global shares has regained more than half its recent losses.
Stoxx Gains
The Stoxx 600 rose for a fifth day, heading for its biggest rebound in more than two years. Total SA (FP) added 2.6 percent and Royal Dutch Shell Plc (RDSA) gained 1.4 percent.Afren Plc (AFR) jumped 8 percent after confirming it received an early approach from Seplat Petroleum Development Co. Roche Holding AG (ROG) added 1.2 percent after one of its drugs was approved in Switzerland to treat cervical cancer.
Futures on the S&P 500 expiring in March rose, indicating the index will climb for a fourth day after closing 0.2 percent away from a record.
Brent oil added 1.2 percent to $62.13 a barrel, extending Dec. 19’s 3.6 percent surge, the most since October 2012. The grade settled at $59.27 on Dec. 18, the lowest close since May 2009. West Texas Intermediate, the U.S. benchmark, gained 0.9 percent to $57.65 a barrel.
Crude is still in a bear market as the largest U.S. oil output in 30 years collides with slowing global demand growth. The Organization of Petroleum Exporting Countries last month refrained from reducing its production target of 30 million barrels a day.
Gas Falls
U.S. natural gas futures (SPX) fell 5.3 percent to $3.280 per million British thermal units on the New York Mercantile Exchange, the lowest since Aug. 13, 2013.The dollar weakened 0.3 percent to $1.2260 per euro after appreciating to $1.2220, matching the strongest level since August 2012. The euro advanced 0.5 percent to 146.91 yen.
The yield on German 10-year (GDBR10) bonds was little changed at 0.60 percent, while that on similar-maturity U.S. Treasuries was at 2.17 percent. The rates on Spanish (GSPG10YR) and Portuguese (GSPT10YR) 10-year bonds fell to record lows today.
Emerging-market stocks headed for the steepest four-day gain in 15 months, with the MSCI Emerging Markets Index rising 1.1 percent, as the rally in crude boosted energy companies.
The Shanghai Composite Index advanced 0.6 percent to the highest level since November 2010 as investors piled into the largest companies amid a surge in trading. Industrial & Commercial Bank of China Ltd. led a 3 percent increase in a gauge of mainland shares in Hong Kong.
Stronger Ruble
Russia’s ruble strengthened 3.5 percent versus the dollar, taking a two-day appreciation to 8.6 percent. The Micex Index retreated 0.1 percent today in the second day of declines.OAO Rosneft rallied 2.4 percent after it repaid $7 billion in debt and said it’s generating enough dollars to meet the obligations taken on to buy TNK-BP last year and become the world’s largest traded oil producer. Equity gauges in the Czech Republic, Hungary, Poland and Turkey climbed.
Dubai’s DFM General Index added 2.3 percent, trimming a plunge this quarter to 24 percent.
The U.S. updates third-quarter gross domestic product tomorrow, with economists surveyed by Bloomberg predicting annualized growth will be revised up to 4.3 percent for the three-month period, from a previous estimate of 3.9 percent. Data on goods orders and personal consumption in the world’s largest economy are also due this week.
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