Global Stocks Buoyed by Gains in Energy, Tech
December 12 2017 - 09:17AM
Dow Jones News
By David Hodari
-- Brent crude hits 2 1/2 -year high
-- Energy, tech upbeat in Europe, U.S.
-- Investors look to central banks
U.S. energy stocks were on course to replicate the gains made by
the sector in European indexes Tuesday amid rising oil prices.
S&P 500 futures were up 0.1% in premarket trade, as the
Stoxx Europe 600 gained 0.3%, shrugging off broadly downbeat
trading in Asia.
In the U.S., TechnipFMC was on course for a 2.1% increase and
Marathon Oil was set to open 1.7% higher. The Stoxx Europe 600's
oil-and-gas sector rose 1.4%, with Statoil up 3.4% and Tullow Oil
up 2.9%.
Brent crude, the global benchmark, gained 1.6% to $65.74 a
barrel after surpassing $65 a barrel Monday for the first time
since June 2015. That followed the news that the major Forties
North Sea pipeline will temporarily close after a fracture was
found.
The European tech sector received a boost, with shares in French
IT firm Atos up 5% on its bid for Dutch software firm Gemalto,
which itself leapt 33%. The Stoxx Europe 600 technology sector rose
1%.
U.S. tech firms also looked likely to lead early gains. Gaming
company Activision Blizzard was set to gain 2.5%, and data storage
company Seagate Technology was heading for a 1.7% increase.
Otherwise, trading was mild as investors awaited cues from
global central banks. The U.S., European, and U.K. central banks,
among others, are scheduled to meet this week, with European
Central Bank President Mario Draghi due to give a speech
Tuesday.
"The main focus from Draghi is that we'll get new economic
forecasts and we'll get 2020 [forecasts] for the first time. he may
also give more detail on how [the ECB] plans to scale back
purchases to EUR30 billion [$35 billion] from EUR60 billion. Will
they halve all purchases or take a more nuanced approach?" said
James Knightley, chief international economist at ING.
Also scheduled for Tuesday was the start of the Federal Open
Market Committee's two-day meeting, with the body's interest rate
decision due Wednesday. Data from CME Group showed investors were
betting on a 100% probability that the Fed will announce a rate
increase.
Fed observers should not expect many surprises in the months
ahead either, said Mark Richards, a global multiasset strategist at
J.P. Morgan Asset & Wealth Management. December's meeting will
be the last for multiple FOMC members, and given an impending
change in chairperson in January, "it doesn't feel like a new Fed
chair will seek to alter the policy path materially, so we expect
[the current guidance of three hikes] to be maintained for a good
few months."
U.S. 10-year Treasury yields ticked up to 2.393% from 2.387%
late Monday, while German 10-year bond yields moved up to 0.306%
from 0.288%. Yields move inversely to prices.
Rising oil prices helped Australia's commodities-heavy
S&P/ASX 200 index buck the negativity of the broader
Asia-Pacific region and finish 0.2% higher.
Asian tech stocks drove a reversal of early-week gains. Hong
Kong's Hang Seng Index fell 0.6%, dragged lower by heavyweight
Tencent Holdings. The tech giant fell 3% after disclosing that one
of its units is in talks to acquire a minority stake in supermarket
operator Yonghui.
Taiwan's tech-heavy Taiex fell 0.3% and Korea's Kospi slipped
0.4%, despite a 0.6% gain for index heavyweight Samsung
Electronics. Japan's Nikkei closed 0.3% lower partly thanks to a
slight drop in the yen against the dollar.
Regional selling also dragged on Chinese stocks, with the
Shanghai Composite down 1.3% and the Shenzhen Composite down 1%.
That came despite credit data released late Monday showing
resilient bank lending in November.
Bitcoin prices slipped after Securities and Exchange Commission
Chairman Jay Clayton warned about the risks to retail investors in
the red-hot cryptocurrency. Coindesk's Bitcoin USD Price Index was
recently up 0.6% at around $16,795.23 after nearing $17,400 in late
New York trading.
Gregor Stuart Hunter contributed to this article.
Write to David Hodari at David.Hodari@dowjones.com
(END) Dow Jones Newswires
December 12, 2017 09:02 ET (14:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Tullow Oil (LSE:TLW)
Historical Stock Chart
From Feb 2024 to Mar 2024
Tullow Oil (LSE:TLW)
Historical Stock Chart
From Mar 2023 to Mar 2024