Crude oil prices enjoyed a strong rally in yesterday’s trading sessions after talks of an OPEC meeting to be scheduled this month hit the newswires. Calls for production cuts have been getting stronger after the commodity suffered another selloff earlier in the week, although Arab states still seem stubborn to do so.
WTI crude oil recovered to $32.50/barrel while Brent crude oil is trading above $35/barrel again. Gold prices still advanced to $1,140/ounce while silver climbed to $14.675/ounce.
The Dow 30 index closed 183.12 points higher to 16,336.66 (+1.13%) and the S&P 500 index rose 9.50 points to 1,912.53 (+0.50%). However, the Nasdaq index ended 12.7 points lower to 4,504.2 (-0.28%) as the S&P 500 VIX indicated a return in risk appetite by dropping 0.33 points to 21.65 (-1.50%).
European markets still in the red
This risk-taking sentiment wasn’t present in the earlier London trading session, as European equities ended around 1% lower. The German DAX slid 146.22 points to 9,434.82 (-1.53%), the French CAC 40 was down 57.03 points to 4,226.96 (-1.33%), and the Euro Stoxx 50 lost 55.99 points to 2,895.86 (-1.90%) as some final services PMI readings suffered downgrades.
In the UK, the FTSE slipped 84.87 points to 5,837.14 (-1.43%) ahead of the Bank of England interest rate decision today. Along with this, the BOE Inflation Report and the MPC meeting minutes will be printed. The former is slated to contain revised growth and inflation estimates while the latter would shed more light on policymakers’ biases.
Asian stocks cheer rebound in commodities
On a more positive note, Asian market trading appears to be picking up from the earlier session’s risk-on vibes. Oil and gold continued to advance, propping shares in Australia and China up. The Nikkei, however, is down 51.46 points to 17,139.79 (-0.3%) as Japan has expressed concerns about North Korea’s missile activity.
In Australia, the S&P ASX 200 is up 98.04 points to 4,974.80 (+2.01%) upon seeing an improvement in the country’s NAB business confidence index from 1 to 4. The China A50 index is up 48.47 points to 8,828.41 (+0.55%) and the Hang Seng is up 295.41 points to 19,287.00 (+1.56%).
Up ahead, talks of a meeting between Russia and Saudi Arabia could also influence oil prices and overall market sentiment, with energy shares likely to experience strong gains if any moves to restrict supply are announced.