New York: Oil prices jumped after Russia said it was
ready to meet with other producers to discuss the market, while world
stock indexes rose with commodity-related shares amid a backdrop of low
global interest rates.
The S&P 500 rose for a fifth straight session for the first time
this year, helped by increases of more than 2 per cent in S&P's
energy, materials and industrials indexes.
The S&P health index, up just 0.3 percent, underperformed the
broader market with biotechs falling as sector sentiment tumbled
alongside shares of Canada's Valeant Pharmaceuticals and after industry
complaints the Trans-Pacific Partnership agreement falls short on patent
protection for drugs.
Valent's U.S. shares slid 10.3 percent to $163.46.
News that Nelson Peltz's Trian Fund Management disclosed a roughly 1
percent stake worth $2.5 billion in GE lifted GE's stock 5.3 percent to
$26.82, the biggest positive influence on the S&P 500.
"The market was a bit oversold," said Stephen Massocca, chief investment
officer at Wedbush Equity Management LLC in San Francisco. "Energy
stocks are very oversold so they're a big contributor to the rally
today. Commodity names seem to be catching a bit of a bid. We're still
looking for low interest rates and the Fed to be on hold for a while."
The Dow Jones industrial average rose 304.06 points, or 1.85 percent, to
16,776.43, the S&P 500 gained 35.69 points, or 1.83 percent, to
1,987.05 and the Nasdaq Composite added 73.49 points, or 1.56 percent,
to 4,781.26.
European stocks surged, with the FTSEuroFirst 300 index in Europe ending
up 3 percent. Data showing euro zone business activity grew at its
weakest pace in four months during September reinforced expectations
monetary policy backdrop will remain equity-friendly.
MSCI's all-country world index was up 1.9 percent.
RUSSIA
Oil prices climbed after the news on Russia, with Brent settling at
$49.25 a barrel, up $1.12 or 2.3 percent. and U.S. oil's West Texas
Intermediate (WTI) crude up 72 cents, or 1.6 percent, to settle at
$46.26.
Russia, one of the world's top three oil producers, said it was prepared
to meet OPEC and non-OPEC oil producers to discuss the market if such a
meeting is called.
Moscow had been unwilling in the past to cut its oil output to support prices.
The U.S. dollar rose against a basket of major currencies on renewed
investor risk appetite in the wake of a disappointing U.S. jobs report.
A U.S. rate hike is expected to boost the dollar by driving investment
flows into the United States. While the dollar has previously weakened
on expectations for later Fed rate hikes, the greater risk appetite took
precedence on Monday.
The U.S. dollar index, which measures the greenback against a basket of
six major currencies, was last up 0.26 percent at 96.081, marking a
recovery from a nearly two-week low of 95.218 hit Friday
Before Friday's jobs data, the Fed had been widely expected to raise
U.S. interest rates by year-end. It decided not to change its policy
path in September.
