Back-to-back gains for global stocks; Brent climbs into positive territory

Global stocks headed for their first back-to-back gain in two weeks on continuing optimism that the deadly coronavirus pandemic may be waning in some key epicentres. While most Asian markets surged, a second day of gains in European equities put the region’s benchmarks from Italy to France and Germany on course to exit a bear market. 

The US markets, too, were in the green. The S&P 500 was set for its biggest two-day gain in nearly two weeks, building on a 7 per cent jump on Monday, as health officials said the pandemic may kill fewer Americans than recent projections.

The MSCI Asia Pacific Index climbed about 1 per cent after advancing almost 3 per cent Monday.  
 

In Europe, the Euro Stoxx 50 Index of bluechip shares rose more than 20 per cent from last month’s closing low, as did the FTSE MIB Index, the CAC 40 Index and the DAX Index. 

 

 

On the other hand, oil edged lower on uncertainty over whether the world’s biggest producers — Saudi Arabia and Russia — would agree to cut output in the face of a swelling crude oil glut as fuel demand has been hammered during the coronavirus pandemic.

Brent crude fell 58 cents to $32.60 a barrel by 11.43 pm IST, while West Texas Intermediate crude lost 92 cents to $25.16 a barrel.  

“The market is indicating it wants some more certainty on whether the Russians and Saudis will strike a deal to limit supply,” said Gene McGillian, vice president of market research at Tradition Energy.