Oil Prices, Asian Shares Rally on Optimism of Global Recovery
NEW YORK (Dispatches) - Oil prices and Asian shares rallied on Monday on optimism in the global economy thanks to progress in a huge U.S. stimulus package and on hopes for improving oil demand as vaccines are rolled out.
Brent crude futures for May rose $1.07, or 1.7%, to $65.49 per barrel by 0042 GMT. The April contract expired on Friday.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.10, or 1.8%, to $62.60 a barrel.
"Oil prices are recovering this morning in line with most risk assets on the back of the U.S. stimulus bill passing the House and as central banks continue to sabre rattle to ward off market-implied financial tightening,” Stephen Innes, chief global markets strategist at Axi, wrote in a note on Monday.
U.S. House of Representatives passed a $1.9 trillion coronavirus relief package early Saturday. Democrats who control the chamber approved the sweeping measure by a mostly party-line vote of 219 to 212 and sent it to the Senate, where Democrats planned a legislative manoeuvre to allow them to pass it without the support of Republican
More positive news on the coronavirus vaccination front and signs of an improving Asian economy also boosted prices.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.8 percent, after shedding 3.7 percent last Friday.
Japan’s Nikkei rallied 2.1 percent, while Chinese blue chips added 0.5 percent.
NASDAQ futures bounced 1.2 percent and S&P 500 futures 0.9 percent. EUROSTOXX 50 futures and FTSE futures both rose 1.1 percent.
Brent crude futures for May rose $1.07, or 1.7%, to $65.49 per barrel by 0042 GMT. The April contract expired on Friday.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.10, or 1.8%, to $62.60 a barrel.
"Oil prices are recovering this morning in line with most risk assets on the back of the U.S. stimulus bill passing the House and as central banks continue to sabre rattle to ward off market-implied financial tightening,” Stephen Innes, chief global markets strategist at Axi, wrote in a note on Monday.
U.S. House of Representatives passed a $1.9 trillion coronavirus relief package early Saturday. Democrats who control the chamber approved the sweeping measure by a mostly party-line vote of 219 to 212 and sent it to the Senate, where Democrats planned a legislative manoeuvre to allow them to pass it without the support of Republican
More positive news on the coronavirus vaccination front and signs of an improving Asian economy also boosted prices.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.8 percent, after shedding 3.7 percent last Friday.
Japan’s Nikkei rallied 2.1 percent, while Chinese blue chips added 0.5 percent.
NASDAQ futures bounced 1.2 percent and S&P 500 futures 0.9 percent. EUROSTOXX 50 futures and FTSE futures both rose 1.1 percent.