NEW YORK, United States (AFP) — US stocks continued to rebound from last week’s rout on Monday, rising for the third straight session, while oil prices strengthened ahead of a closely-watched OPEC meeting.
European stocks finished modestly lower, while Tokyo and Hong Kong both gained.
Continued US economic optimism was reflected in a new survey showing executives in the manufacturing and services sector expect to see increased revenue, hiring and capital spending in 2017, according to the Institute for Supply Management.
Analysts also cited the just-completed strong corporate earnings season and solid economic data as factors that have permitted the market to look past any worries about President Donald Trump’s agenda after a series of stumbles and scandals. And with Trump out of the country on his first foreign trip, there has been little news to worry investors.
US stocks plunged on Wednesday over White House controversies, but have recovered since then.
“We rallied into Friday and it feels as if we’ve got momentum carrying us forward with the understanding that things are perhaps not as terrible as they looked on Wednesday and fundamentals are still intact,” said Art Hogan, chief market strategist at Wunderlich Securities.
Meanwhile, oil prices strengthened ahead of Thursday’s meeting of the Organization of the Petroleum Exporting Countries. Iraq endorsed a nine-month extension of a production pact.
That came after Saudi Arabia’s energy minister Khalid al-Falih on Sunday expressed confidence in the possibility of extending the agreement to limit output between OPEC and Russia.
“The big event of the week will be the OPEC meeting in Vienna, and we have seen early strength in oil prices as a result,” said Chris Beauchamp, chief market analyst at IG trading group.
“Still, there needs to be some sizeable production cuts coming down the line, both in size and length of time, to force a further rally in oil prices, which have already gained 16 percent from their low earlier this month.”
Defense shares rise
US defense shares rallied after Trump announced a $110 billion arms deal sale to Saudi Arabia during his visit to the country over the weekend. Dow member Boeing rose 1.6 percent, Lockheed Martin 1.5 percent and Raytheon 0.6 percent.
Ford advanced 2.1 percent after the company announced a management shakeup, replacing the CEO and senior executives amid declining sales in the US and Chinese markets. The move comes as Ford faced pressure from investors over its weak share price.
Meanwhile in Brazil, shares in JBS, the world’s biggest meatpacking company, plummeted 31.3 percent amid a corruption scandal involving executives and Brazilian President Michel Temer.
Temer is fighting for his political life after revelations that he met with JBS executive Joesley Batista and allegedly discussed paying hush money to a politician jailed for corruption.
Key figures around 2040 GMT
New York – Dow: UP 0.4 percent at 20,894.83 (close)
New York – S&P 500: UP 0.5 percent at 2,394.02 (close)
New York – Nasdaq: UP 0.4 percent at 6,133.62 (close)
London – FTSE 100: UP 0.3 percent at 7,496.34 points (close)
Frankfurt – DAX 30: DOWN 0.2 percent at 12,619.46 (close)
Paris – CAC 40: DOWN less than 0.1 percent at 5,322.88 (close)
EURO STOXX 50: DOWN 0.3 percent at 3,577.74
Tokyo – Nikkei 225: UP 0.5 percent at 19,678.28 (close)
Hong Kong – Hang Seng: UP 0.9 percent at 25,391.34 (close)
Shanghai – Composite: DOWN 0.5 percent at 30.75.68 (close)
Euro/dollar: UP at $1.1239 from $1.1207
Dollar/yen: UNCHANGED at 111.27 yen
Pound/dollar: DOWN at $1.2998 from $1.3038
Oil – Brent North Sea: UP 27 cents at $53.87 per barrel
Oil – West Texas Intermediate: UP 40 cents at $50.73 per barrel
© Agence France-Presse
