Oil prices jumped yesterday as government data showed US crude stocks rose slightly less than expected last week, while the US dollar advanced against the euro ahead of today’s European Central Bank meeting.
US stocks climbed following gains in energy shares and some upbeat earnings reports.
Speculation that major oil producers would meet in Russia in May for another attempt at curtailing output also boosted oil prices. Brent crude oil was up $1.55 at $45.58 a barrel, while US crude was up $1.42 at $42.50.
Oil prices had been lower earlier after Kuwaiti workers ended a three-day strike.
On Wall Street, investors are focused on the earnings season as they seek catalysts to drive stocks higher. Intuitive Surgical rose 3.5 per cent after stronger-than-expected profit, though other reports disappointed. Coca-Cola was down 4.1 per cent after reporting a drop in sales.
If earnings surprise on the upside, “you could see people ... join the rally, and that money from the sidelines will move into the market,” said Nadia Lovell, US Equity Specialist at J.P. Morgan Private Bank.
The Dow Jones industrial average was up 75.16 points, or 0.42 per cent, to 18,128.76, the S&P 500 had gained 5.16 points, or 0.25 per cent, to 2,105.96 and the Nasdaq Composite had added 14.23 points, or 0.29 per cent, to 4,954.56.
The MSCI All-Country World index was up 0.1 per cent, while the FTSEurofirst 300 index of top European shares ended up 0.5 per cent.
The US dollar rose against the euro on fears that comments from the ECB today could hurt the eurozone common currency, while some riskier commodity currencies remained near multi-month highs on relief over China’s economy.
The ECB, though, is not expected to make any policy changes at its meeting on Thursday. It is expected to reiterate its plans to support the eurozone economy, according to analysts.
The euro eased from a one-week high against the dollar of $1.1386 touched earlier in the session and was last down 0.4 per cent at $1.1313 ahead of the ECB meeting.
US Treasuries yields held in their recent tight range with no major economic releases due this week and as investors looked ahead to next week’s Federal Reserve meeting.
Benchmark 10-year note yields were last at 1.81 per cent, up from 1.78 per cent on Tuesday. Yields have held between 1.81 and 1.69 per cent since the beginning of April.