A roundup of trading on major world markets:
NEW YORK – Wall Street is higher, as investors go bargain hunting among beaten-down consumer discretionary, industrial and financial stocks.
Even a drop in crude oil prices, which has dictated the stock market’s move recently, failed to derail stocks. The energy sector was the lone laggard among the 10 major S&P sectors, as oil prices fell.
The consumer discretionary index’s 1.93 per cent rise led the advancers. The industrials, financials, technology and health sectors were also up more than one per cent.
“We are seeing some bargain hunting but it isn’t enough as yet to reverse the negative sentiment,” said Art Hogan, chief market strategist at Wunderlich Securities in New York.
Investors are holding the most cash since November 2001, which should be interpreted as an “unambiguous buy” signal, according to Bank of America Merrill Lynch in its February global fund managers survey.
At 12:38 p.m. ET (1738 GMT) the Dow Jones industrial average was up 168.81 points, or 1.06 percent, at 16,142.65.
The S&P 500 was up 23.53 points, or 1.26 percent, at 1,888.31 and the Nasdaq Composite was up 76.26 points, or 1.76 percent, at 4,413.77.
LONDON – Britain’s top share index has risen in choppy trade, with oil shares holding on to gains after news that some oil producing countries were co-operating to tackle a supply glut.
The energy sector contributed over 10 points to the FTSE 100, which was up 0.7 per cent at 5,862.17 points at the close on Tuesday.
But oil shares, as well as the index as a whole, gave up some gains along with the price of Brent crude after a meeting of oil ministers from Saudi Arabia, Russia, Qatar and Venezuela produced only the promise of a freeze, not a cut, in supply.
The deal was also contingent on other producers joining in.
“All they’ve agreed to is not increasing output, and that doesn’t include Iran,” said Alastair McCaig, market analyst at IG.
Azerbaijan has also said it has no plans to freeze production.
“People are hopeful when they hear this talk of output freezes, but it’s already now looking as if that’s not going to happen,” said Augustin Eden, research analyst at Accendo Markets.
HONG KONG – Asian shares extended gain as a combination of stabilising Chinese markets, rebounding oil prices and solid US consumption data prompted investors to look for bargains after last week’s rout.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.1 per cent, with mainland China shares advancing 2.7 per cent to three-week highs, helped by a surge in China’s bank lending to a record high.
“Before the start of the Lunar New Year, there were worries about Chinese shares and a possible further fall in the yuan.
“But since the resumption of trading on Monday, Chinese markets have been surprisingly steady,” said Koichi Yoshikawa, executive director of financial markets at Standard Chartered Bank.
Japan’s Nikkei rose 0.2 per cent after a 7.2 per cent climb on Monday, recovering a sizable part of its 11 per cent slump last week – its biggest since 2008.
“It is partly a reaction after such big falls last week.
Solid US data is also improving investor sentiment given that they are counting on US growth to lead the global economy,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
WELLINGTON – The S&P/NZX 50 Index rose 41.09 points, or 0.7 per cent, to 6,075.37.
