Global equities attempt rebound from virus-fuelled losses

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.

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.

AFP/Angela Weiss

LONDON - Global equities mostly rebounded from recent coronavirus-fuelled losses, as oil rallied on hopes of an end to a Saudi-Russia price war, and resurgent Chinese energy demand, dealers said.

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.

READ: Oil prices fall around 6% after Trump virus address

In the eurozone, Frankfurt added 0.4 percent, Milan won 0.8 percent and Paris gained 0.7 percent.

Oil soared more than ten percent on hopes for a US intervention to end a Saudi-Russia price war, with 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.

READ: Oil rises but Asia struggles to recover from Black Monday rout

"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," said CMC Markets analyst Michael Hewson.

"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."

Crude rallied after Beijing called on authorities to buy up the battered commodity to fill its reserves, helping ease supply pressure after demand fell off a cliff and producers ramped up output.

Source
AFP