Global Equities Attempt Rebound from Virus-fuelled Losses

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Global Equities Attempt Rebound from Virus-fuelled Losses

April 3: Global equities mostly rebounded Thursday from recent coronavirus-fuelled losses, as oil rallied on hopes of an end to a Saudi-Russia price war, and resurgent Chinese energy demand, AFP reported citing the dealers.

According to the French news agency, traders were on tenterhooks before US jobless claims data, which will again lay bare the impact of COVID-19 on the world's biggest economy after dire figures last week.

“In midday deals, the London stock market advanced 0.3 percent with energy majors BP and Shell winning almost ten percent on the back of soaring crude futures that lift profits. In the eurozone, Frankfurt added 0.4 percent, Milan won 0.8 percent and Paris gained 0.7 percent,” AFP reported.

Oil soared more than ten percent on hopes for a US intervention to end a Saudi-Russia price war, with US President Donald Trump saying he expected the two to resolve the row, while dealers were also cheered by China's decision to snap up bargain crude.

The European single currency meanwhile dipped versus the dollar.

"We do appear to be seeing some gains ... on a couple of headlines that China will start topping up its state reserves, and that Saudi Arabia is supporting co-operation amongst oil producers to stabilise oil markets," AFP quoted CMC Markets analyst Michael Hewson as saying.

"These gains are helping support rebounds in Royal Dutch Shell and BP's share price, as well as a modest stabilisation in early trading for European markets."

On the downside, Madrid stocks dived 1.1 percent on news that the coronavirus death toll in Spain has surged past 10,000.

 

After two weeks of much-needed gains fuelled by trillions of dollars in stimulus and widespread monetary easing, focus has returned to the devastation wrought on populations and the long-term impact of the pandemic.

According to AFP, US President Trump's COVID-19 task force has warned America could see almost a quarter of a million deaths and the president warned of a "horrific" couple of weeks ahead.

His comments came as a number of countries said they would extend lockdowns, which have already gouged economies around the world, the news agency further reported.

 

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