Global stocks recover as crude oil prices bounce back

PAMELA NEWENHAM

Global markets pulled out of their nosedive after oil prices rebounded on hopes of a cut in production.

Heavy falls overnight in Asia sparked declines across Europe, with China’s benchmark Shanghai Composite dropping 6.4 per cent to its lowest close since December 2014.

Dublin

The Dublin market performed better today, helped by a rebound in oil. The ISEQ index closed up 0.7 per cent or 50.17 points at 6,377.23.

Ryanair, which has results due next week, outperformed its peers. It finished up 1.4 per cent at €14.29, with four million shares traded.

Bank of Ireland shares rallied towards the end of the day, closing up 4.7 per cent at 31 cent.

Paddy Power which is trading at all time highs above €130 also performed well. It finished the day up 2.7 per cent at €131.50. One stockbroker, said people are expecting good moves with the Betfair merger next week.

There was reasonable volume in Independent News & Media, with 12 million shares traded. The stock fell 3.1 per cent to 15 cent.

Smurfit Kappa shares were quite weak, following news that the Packaging Corporation of America had reduced its guidance. The stock fell 3.9 per cent to €20.89.

Tullow Oil jumped 9.8 per cent to €2.05, as crude oil prices bounced back.

London

Britain’s leading share index ended higher, lifted by an oil-price rise a knock-on rally in battered mining stocks.

The blue-chip FTSE 100 recovered from an early decline to finish 0.6 per cent up at 5,911.46 points, although the index remains down 5 per cent since the start of 2016.

Mining stocks also surged, with Anglo American rising 11.8 per cent on the back of higher diamond sales at its De Beers division, and firmer copper prices also lent support.

MB Capital director Marcus Bullus said his outlook was positive because outside the volatile commodities sector there were solid results, such as higher profits at housebuilder Crest Nicholson.

Lloyds Banking Group and Royal Bank of Scotland added 2.5 per cent or more, rebounding from Monday’s drop.

EasyJet fell 3.2 per cent after posting revenue that missed estimates.

Europe

European stocks gained after early losses, with commodities stocks rebounding after oil rose towards $31 on hopes of an agreement to deal with supply glut and metals prices gaining ground on speculative buying.

Among other movers, Siemens rose 8.6 per cent after Europe’s biggest industrial group raised its full-year earnings forecast on strong first-quarter results.

Philips jumped 6.1 per cent after reporting that quarterly earnings rose more than estimated on growth in medical equipment

Deutsche Post lost 2.7 per cent after Credit Suisse cut its recommendation on the stock to the equivalent of a sell from a buy, citing threats from Amazon. com Inc.'s expansion in Germany and currency headwinds.

The Stoxx Europe 600 Index climbed 0.9 per cent at the close of trading.

US

Wall Street rebounded sharply today, driven by a set of strong corporate results and recovering crude oil prices, ahead of the Federal Reserve’s policy meeting and Apple’s results.

3M was up 4.9 per cent at $144.28, giving the biggest boost to the Dow, while Johnson & Johnson’s 2.9 percent rise to $99.20 boosted the S&P 500. Both companies reported better-than-expected quarterly profits.

Procter & Gamble was up 3 per cent at $79.15 after its profit beat estimates, while Coach jumped 7.9 per cent to $32.75 after it reported its first increase in sales in 10 quarters.

At 16.01 GMT, the Dow Jones industrial average was up 249.76 points, or 1.57 per cent, at 16,134.98, the S&P 500 was up 20.45 points, or 1.09 per cent, at 1,897.53 and the Nasdaq Composite index was up 24.36 points, or 0.54 per cent, at 4,542.85.

Additional reporting: Bloomberg, Reuters