Monitoring Desk
LONDON: Global equities mostly rebounded Thursday from recent coronavirus-fuelled losses, as oil rallied on hopes of an end to a Saudi-Russia price war, and resurgent Chinese energy demand, dealers said.
Traders were on tenterhooks before US jobless claims data, which will again lay bare the impact of COVID-19 on the world’s biggest economy after dire figures last week.
In midday deals, the London stock market advanced 0.3 percent with energy majors BP and Shell winning almost ten percent on the back of soaring crude futures that lift profits.
In the eurozone, Frankfurt added 0.4 percent, Milan won 0.8 percent and Paris gained 0.7 percent.
Oil soared more than ten percent on hopes for a US intervention to end a Saudi-Russia price war, with President Donald Trump saying he expected the two to resolve the row, while dealers were also cheered by China’s decision to snap up bargain crude.
The European single currency meanwhile dipped versus the dollar.
“We do appear to be seeing some gains… on a couple of headlines that China will start topping up its state reserves, and that Saudi Arabia is supporting co-operation amongst oil producers to stabilise oil markets,” said CMC Markets analyst Michael Hewson.
“These gains are helping support rebounds in Royal Dutch Shell and BP’s share price, as well as a modest stabilisation in early trading for European markets.”
On the downside, Madrid stocks dived 1.1 percent on news that the coronavirus death toll in Spain has surged past 10,000 after a record 950 deaths in 24 hours, while the number of confirmed cases passed the 110,000 mark.
The deadly coronavirus is keeping traders on edge as it sweeps the planet, with infections approaching one million and countries forced to tighten already strict lockdown measures.
Equities were gripped Wednesday by a global rout as the human and economic toll from the coronavirus rose.
After two weeks of much-needed gains fuelled by trillions of dollars in stimulus and widespread monetary easing, focus has returned to the devastation wrought on populations and the long-term impact of the pandemic.
US President Donald Trump’s COVID-19 task force has warned America could see almost a quarter of a million deaths and the president warned of a “horrific” couple of weeks ahead. His sobering comments came as a number of countries said they would extend lockdowns, which have already gouged economies around the world.
Adding to the unease on trading floors was a report saying China had masked the true extent of the virus in the country, which is just coming out of an extended shutdown.
Later on Thursday, eyes are on the release of US jobless claims figures for last week, which some estimates have put at a mind-boggling 6.5 million. (AFP/APP)
