December 15, 2017
Wednesday, March 9, 2016

Another up day for oil helps Wall Street extend its rally

Wall Street built on a nearly month-old rally on Wednesday as a strong recovery in oil prices sent energy shares sharply higher.

Volatility in oil and stock prices has been linked for much of 2016 to a degree that has surprised many investors. Wednesday's market action extended that trend, with Brent crude rising above $40 a barrel, continuing its recovery from decade lows that led to stock market turmoil in January.

"It's still this puzzling correlation between the price of oil and stocks. It really is not supposed to play out this way," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa.

"But given that oil drove the U.S. stock market down, it makes sense that stocks' rise would be tied to oil's comeback."

Since Feb. 11, the S&P 500 has gained 8.7 percent, repairing some of the damage caused by the S&P 500's worst January since 2009. The index remains down 3 percent for 2016.

At 2:42 p.m., the Dow Jones industrial average was up 0.16 percent to 16,991.02 points and the S&P 500 had gained 0.41 percent to 1,987.35. The Nasdaq Composite added 0.43 percent to 4,668.78.

European shares rose helped by gains in Italy's Telecom Italia and Mediaset on prospects of possible M&A deals with French rivals.

The pan-European FTSEurofirst 300 index, which fell 0.9 percent on Tuesday to around its lowest level in a week, rose 0.5 percent at 1,335.4 points, while euro zone's blue-chip Euro STOXX 50 index rose by the same amount.

In Asia, Japan's benchmark Nikkei index fell to a more than one-week low as a stronger yen continued to undermine sentiment and pressure exporters, while broader confidence was blunted by slipping oil prices and concerns over China's economy.

The Nikkei share average ended down 0.8 percent at 16,642.20, the lowest closing level since March 1.

The broader Topix fell 1.1 percent to 1,332.33 and the JPX-Nikkei Index 400 slipped 1.2 percent to 12,057.72.

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Tags:  US  stock market  Europe  Nikkei  

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