Global stock markets and oil prices rose yesterday in another volatile session on hopes oil producers would pare production to alleviate the supply excess that has punished equity prices and pushed oil values to 12-year lows.
Nervous investors put more money into the low-risk yen, Swiss franc, gold, US and German government debt as they await more clues whether the Federal Reserve and other central banks would provide support to stabilise markets that have been roiled partly due to worries about weakening economic growth in China.
Top Opec and Russian oil industry officials stepped up vague talk on Monday of possible joint action to remedy one of the worst supply gluts in decades, though there were others, including Kuwait, who say they doubt it will happen as long as others are increasing their output.
Brent crude was last up 36 cents, or 1.18 per cent, at $30.86 a barrel, and US crude was last up 21 cents, or 0.69 per cent, at $30.55 per barrel.
The oil market rebound rekindled some appetite for stocks.
In early US trading, the Dow Jones industrial average was up 235.72 points, or 1.48 per cent, to 16,120.94, the S&P 500 was 20.5 points, or 1.09 per cent, higher at 1,897.58 and the Nasdaq Composite was up 23.96 points, or 0.53 per cent, to 4,542.45.
Some nervousness ahead of Apple’s quarterly results later Tuesday, which are expected to show a sharp drop in iPhone sales, was mitigated by encouraging US data on home prices and consumer confidence.
The pan-European FTSEurofirst 300 index was up 0.5 per cent at 1,329.86.
Tokyo’s Nikkei ended 2.4-per cent weaker, part of a broad decline across Asia.
Mainland Chinese shares tumbled more than 6 per cent to a 14-month low on renewed jitters over Beijing’s ability to calm domestic markets.
The yen was initially stronger against the dollar and euro but reversed those gains with the rebound in stock and oil prices. It was last down 0.2 per cent against the greenback at 118.47 yen and down 0.1 per cent versus the euro at 128.46 yen.
The dollar was weaker against a basket of currencies, last down 0.2 per cent at 99.199.
Persistent worries about falling oil prices and the global economy supported the demand for both US and German government bonds.
Benchmark 10-year Treasury yield dipped half a basis point to 2.017 per cent, and 10-year Bund yield declined two basis points to 0.46 per cent.
Spot gold prices rose for a second day. It was last up $5.74 or 0.52 per cent, to $1,113.40 an ounce.