June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

GLOBAL MARKETS-U.S., Europe shares gain; oil prices surge 3 pct

Published 12/08/2016, 01:55 am
Updated 12/08/2016, 02:00 am
© Reuters.  GLOBAL MARKETS-U.S., Europe shares gain; oil prices surge 3 pct
NZD/USD
-
US500
-
DJI
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
FTEU3
-
MIWD00000PUS
-
SPNY
-

* Key index of world stock markets up near one-year high

* Wall Street gains, heads back toward record highs

* Oil up as Saudi mulls meeting, IEA sees market tighten

* NZ dollar jumps as rate cut disappoints (Updates with open of U.S. markets; changes byline, changes dateline, previous London;)

By Lewis Krauskopf

NEW YORK, Aug 11 (Reuters) - Stocks on major world markets gained on Thursday, while oil prices surged more than 3 percent on buying triggered by comments from an Saudi oil minister and a forecast that crude markets are set to tighten.

Major U.S. stock indexes gained, climbing back near their all-time records. The pan-European FTSEurofirst 300 stock index .FTEU3 climbed 0.5 percent, its sixth day of gains in the past seven.

With bond yields low in developed economies as central banks maintain accommodative monetary policies, investors have sought out equities for yield.

U.S. equity investors on Thursday seized on labor data showing a drop in jobless claims and corporate updates from department store operators Macy's M.N and Kohls KSS.N . seems to be little risk that central banks, either domestically or internationally, are going to do anything to disrupt what has been a fragile global recovery," said Alan Gayle, director of asset allocation at RidgeWorth Investments in Atlanta, Georgia.

"That stance reassures investors that potential downside risk is likely to be limited, and so it's more likely to respond positively to any good news."

The Dow Jones industrial average .DJI rose 106.59 points, or 0.58 percent, to 18,602.25, the S&P 500 .SPX gained 8.8 points, or 0.4 percent, to 2,184.29 and the Nasdaq Composite .IXIC added 16.70 points, or 0.32 percent, to 5,221.29.

The energy sector .SPNY was the best-performing major S&P group, buoyed by the rise in oil prices.

MSCI's all-world index .MIWD00000PUS rose 0.4 percent to nearly a year high, for a fifth session of gains out of the past six.

Oil prices rose after comments from the Saudi oil minister about possible action to stabilize prices triggered a round of buying and the International Energy Agency forecast crude markets would tighten in the second half of 2016. drop ... has put the 'glut' back into the headlines even though our balances show essentially no oversupply during the second half of the year," the Paris-based IEA said in its monthly report.

Brent futures LCOc1 rose $1.49 to $45.54 a barrel, a 3.4 percent gain. U.S. crude CLc1 rose $1.39 to $43.10.

The New Zealand dollar rallied to its highest in more than a year after the country's central bank cut rates by 25 basis points to 2.0 percent, less than some investors had expected.

The New Zealand dollar, or kiwi, NZD= was up nearly 1 percent against the U.S. dollar, after rising to its highest point since May 2015. U.S. dollar was little changed against a basket of six currencies.

U.S. Treasury prices fell as investors reduced their bond holdings in advance of a $15 billion sale of 30-year bonds. 10-year Treasury notes US10YT=RR were down 6/32 in price for a yield of 1.522 percent.

(additional reporting by Karen Brettell, Richard Leong and Devika Krishna Kumar and Marc Jones in London; Editing by Bernadette Baum)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.