Rebound in Oil Prices Lifts European and Asian Markets
There’s a general expectation that most markets in Europe will open higher on Monday as investor sentiment gets a lift following a slight recovery in the price of oil, coupled with an overnight Asian stocks rally. The Higher open is on the back of an oil price bounce back following the scramble by traders to exit their short positions.
A massive blizzard on the U.S. East Coast resulted into a spike in demand for oil for heating and offered some support for commodity prices.
The European Central Bank President, Mario Draghi’s comment last week also added some support to European stocks. Draghi noted that the governing council is open to using other monetary policy tools that it has in its arsenal.
Starting the session 38pts higher at 5,938 is the London’s FTSE 100, also opening 73pts higher at 9,838 is the German DAX, while the French CAC 40 is trading 29pts higher at 4,366.
Away from Europe, the Asian markets kicked-off the week on a confident note, as it keeps pace with its recovery theme, after the global crisis that hit stocks in the early part of 2016.
We saw some gains in the Japanese Nikkei 225 of 0.9% to close at 17,110.91. This was in line with an almost 6% spike during the session on Friday. The Kospi, on the other side of the Korean Strait in Seoul closed 0.74% higher at 1893.43.
Also trading higher is the Chinese markets, with the main index i.e. the Shanghai Composite closing 0.78% higher and the Shenzhen composite added 1.01%. In Hong Kong, the Hang Send index appreciated 1.37%.
The ASX 200 in Australia traded to the upside to close at 5006.60 following a 1.84% appreciation, as leading gainers were seen to come from the energy sector, following a 3.50% rally.