Global stocks rally as oil price climbs, optimism increases

AP News
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Posted: Apr 19, 2016 7:53 AM
Global stocks rally as oil price climbs, optimism increases

SEOUL, South Korea (AP) — Global stock markets rallied on Tuesday as a rebound in oil prices and upbeat economic data brightened investor sentiment.

KEEPING SCORE: Europe tracked Asia higher, with Britain's FTSE 100 up 0.3 percent to 6,371.12 and France's CAC 40 up 1.0 percent to 4,553.44. Germany's DAX was the standout performer, jumping 2.3 percent to 10,355.62, after a survey of investor confidence rose. Futures suggested Wall Street would gain on the open, too, with Dow futures up 0.3 percent and S&P futures rising 0.5 percent.

OIL: Crude oil prices advanced following a drop in the previous session due to the failure by oil-producing nations to agree on limiting output. Benchmark U.S. crude gained 70 cents to $40.48 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 58 cents, or 1.4 percent, to close at $39.78 a barrel on Monday. Brent crude, the international benchmark, rose 82 cents to $43.59 a barrel in London.

GERMAN DATA: A survey in Germany of investment analysts shows confidence is up in Europe's biggest economy, thanks mainly to better economic news out of China. The ZEW index rose more than expected to 11.2 points in April, from 4.3 in March. The indicator is based on a survey of 225 financial experts.

ANALYST TAKE: Joshua Mahony, market analyst at IG, says sentiment in markets appears to be "bullish by default" and that as a result it seems like it will "take something hugely significant to knock the indices off their strides."

ASIA'S DAY: Earlier, Japan's Nikkei rallied 3.7 percent to close at 16,874.44 after a sharp loss on Monday. 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. China's Shanghai Composite Index rose 0.3 percent to 3,042.82. Australia's S&P/ASX 200 advanced 1 percent to 5,188.80.

CURRENCIES: The yen resumed its slide with the dollar strengthening to 109.33 yen from 108.96 yen. The euro rose to $1.1338 from $1.1309.