While you were sleeping: Higher oil prices fuel rally on Wall Street
US crude rose to $US57 a barrel a wave of arrests in Saudi Arabia raised concerns of a possible disruption to oil flows.
Hot Topic
Hawke’s Bay
Higher oil prices triggered a rally in energy shares, pushing US stock indexes toward fresh highs.
US crude added 2.6% to $US57.07 a barrel, with several analysts attributing the move to a wave of arrests in Saudi Arabia that raised concerns of a possible disruption to oil flows.
Brent, the global benchmark is up 3.3% to more that $64 a barrel on ICE Futures Europe.
A wider recovery in commodity prices, the pickup in growth in economies around the world, and a weaker US dollar have all helped major indexes climb this year.
At the close, the Dow Jones Industrial Average was up 9.23 points, or 0.4%, to 23,548.42. The S&P 500 added 0.13% to 2591.13 while the Nasdaq Composite added 0.3% to 6786.44.
“The question is whether valuations are already reflecting all of the good news – whether it’s economic growth or tax reform – and then trying to determine where that leaves us with stocks,” says Dan Miller, director of equities at GW&K Investment Management.
Meanwhile, corporate news drove swings in other sectors.
Qualcomm shares rose 0.9% after Broadcom launched a takeover bid for the chip maker in a deal valued at $US100 billion. Broadcom shares edged down 0.3%.
Sprint shed 10% and T-Mobile fell 5.6% after the two companies officially called off their merger, putting an end to a deal that would have combined the third and fourth-placed wireless carriers in the US.
Government bond prices rose as the yield on the benchmark 10-year U.S. Treasury note dropped to 2.322% from 2.334% on Friday.
The Stoxx Europe 600 index edged up 0.1%, buoyed by gains in shares of basic resources companies.
The UK’s FTSE 100 rose 0.03%, France’s CAC 40 fell 0.2% and Germany’s DAX fell 0.07%.
Nevil Gibson
Tue, 07 Nov 2017
Tue, 07 Nov 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
While you were sleeping: Higher oil prices fuel rally on Wall Street
71389