Global stocks edge up on higher oil prices, U.S. GDP revision
Equities in key world markets edged higher on Thursday, supported by an advance in U.S. crude to trade above $50 per barrel for the first time in three weeks, while stocks on Wall Street also got a lift from growth data.
The euro slipped after data showed easing inflation in Spain and Germany, paring back bets on tighter policy from the European Central Bank.
Oil prices rose after Kuwait gave its backing for an extension of OPEC production cuts in an attempt to reduce global oversupply.
“There is a significant chance that a short-to-medium-term bottom has been found,” said Tamas Varga, analyst at London brokerage PVM Oil Associates.
U.S. crude CLc1 last rose 1.6 percent to $50.30 a barrel and Brent LCOc1 traded at $52.92, up 1.0 percent on the day.
Banks and energy led U.S. stocks higher as oil prices rose and gross domestic product increased at a 2.1 percent annualized rate instead of the previously reported 1.9 percent pace. Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised up.
Much of the move in U.S. stocks, which drove them to record highs earlier this month, is predicated on the Trump administration’s commitment to return to a 4 percent economic growth.
Failure last week to pass a major campaign promise to revamp U.S. healthcare called into question Trump’s ability to deliver a tax reform even if his party controls the two chambers of Congress.
The Dow Jones Industrial Average .DJI rose 56.07 points, or 0.27 percent, to 20,715.39, the S&P 500 .SPX gained 5.4 points, or 0.23 percent, to 2,366.53 and the Nasdaq Composite .IXIC added 6.08 points, or 0.1 percent, to 5,903.63.
The benchmark S&P 500 index was at its highest in seven sessions.
The pan-European FTSEurofirst 300 index .FTEU3 rose 0.47 percent, underpinned by a rise in oil stocks. MSCI’s gauge of stocks across the globe .MIWD00000PUS rose 0.08 percent.
Emerging market stocks fell 0.21 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed less than 0.1 percent lower while Japan’s Nikkei .N225 dropped 0.8 percent.
