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Equities Snap Two-Day Losing Streak, Oil Leads Market After Tanker Incident, Trade Is Still In Focus

Thomas Hughes
Global equities rebound, snapping a two-day losing streak as the June rally resumes its upward trajectory.

The U.S. Equities Are Higher On Thursday

The U.S. futures are higher on Thursday, snapping a two-day losing streak as the June rally resumes. Today’s move was led by the energy sector although gains were broad across the market. Oil prices spiked as much as 4.0% in early trading after news of a tanker incident in the Gulf of Oman. The Gulf of Oman is an important oil-shipping route, more than 1/5th of the worlds crude production moves through it. The incident is a reported torpedoing of internationally flagged petroleum tankers.

The tech-heavy NASDAQ is leading the indices with an advance of 0.45%. The Dow Jones Industrials and S&P 500 are both close behind with gains near 0.35%. Energy stocks are up about 1.0% while chip-makers are close behind with average gains of 0.6%. Applied Materials and AMD are both up more than 1.0% in early trading, Micron is up about 0.50%, despite lingering trade tensions.

European Markets Rebound On Oil, Hope

European indices are up in early Thursday trading as energy and hope support prices. The German DAX is in the lead with a gain of 0.60%, itself supported by the telecom sector. The German Government has raised $6.5 billion euros in its auction for 5-G service providers. The auction resulted in a fourth company entering the market. The fourth operator is 1X1 Drillisch, its shares rose more than 5.0% on the news.

Optimism in today’s market is fueled by the positive tone to Trump statements on Wednesday. Trump says he is still optimistic China will strike a deal with the U.S. despite threatening an increase to tariffs. The two sides are still expected to meet at the G-20 meeting later this month but no deal is expected at that time.

In Brexit news, the prime candidate to take Theresa May’s position as Conservative Party leader and Prime Minister has thrown his hat into the ring. Boris Johnson says he will take the UK out of the EU, deal or no-deal, on October 31st. In France, President Macron announced a series of labor reforms that have resulted from ongoing protests within the country.

Asian Markets Move Lower, Trade Is Still In Focus

Asia markets closed mostly lower on Thursday after a weak day in the EU and U.S. The Japanese Nikkie led the losses shedding nearly -0.50% as index heavyweight Japan Display falls -12%. Japan Display announced a new restructuring plan and the exit of current CEO and did not gain investor confidence.  Shares in China were flat and mixed with the Shanghai moving higher and the Hang Seng moving lower. Protests in Hong Kong are causing investor concerns, if the protests get out of hand it could have a serious impact on the Hong Kong economy.

This article was originally posted on FX Empire