US markets recovered from earlier losses and closed higher on Thursday as stocks were boosted by a strong rally in oil prices. The Dow Jones Industrial Average gained 469.93 points, or 2.2 percent, to 21,413.44 while the S&P 500 added 56.40 points, or 2.28 percent, to 2,526.90. The Nasdaq Composite Index advanced 126.73 points, or 1.72 percent, to end the session at 7,487.31.
European markets also edged higher on the back of energy stocks, helping the region’s bourses recover lost ground at the start of the second quarter. The pan-European Stoxx 600 index closed up 0.4 percent, however gains were held back by travel and leisure stocks with cruise operator Carnival PLC plunging more than 20% as it seeks to raise new capital.
Maltese markets also edged higher, with the MSE Equity Total Return Index closing up 0.132 percent at 7,897.993. BMIT Technologies Plc posted the largest gain, up 3.35 percent at €0.494, while PG Plc led the losses with shares down 4.12 percent at €1.63. Out of the ten companies that traded during the session, only six ended the day with a change in price.
Oil surges on Trump intervention
Oil prices surged on Thursday after U.S. President Donald Trump said he had brokered a deal that could result in Russia and Saudi Arabia cutting output by 10 million to 15 million bpd, representing 10-15% of global supply. The OPEC+ crude oil exporter group is debating cutting global supply by 10 million barrels per day, an OPEC source said on Friday, adding that any further cuts must include producers from outside the alliance.
The group is watching the outcome of a meeting between Trump and the oil companies later on Friday and that a final figure on cuts depends on participation by all oil producers. Trump has so far made no offer to cut U.S. output.
Global oil demand is expected to fall by about 30 million barrels per day in April, or about one-third of daily consumption as nearly 3 billion people around the world have been put on lockdown to slow the spread of coronavirus. Close to $20 per barrel, the immense decline in demand has sent oil prices to their lowest levels since 2002.
This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.