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    Positive market reaction to rise in oil prices

    Global markets have risen on the back of a surge in the value of oil.

    A late upsurge in the price of oil has served to boost markets across the globe in trading on Tuesday (26 January 2016), as indices across Europe and the US have demonstrated significant gains.

    Set against the backdrop of one of the worst days in recent memory for the Shanghai Composite Index on Monday (falling by more than 6%), the welcome return of oil prices above the $30 per barrel mark has led to widespread gains today.

    As of 4.22 pm GMT, US light crude values had risen by $0.99 from their position at the opening of markets this morning to reach $31.33 per barrel. Meanwhile, Brent crude prices were up by $1.18 per barrel to $31.68.

    Across the globe, this positive data sparked far-reaching gains for many markets.

    Indeed, by the late afternoon in the UK, the FTSE 100 had gained 0.62% and both the German DAX Index and French CAC 40 had posted daily increases of 0.96% and 1.02% respectively.

    Across the Atlantic, markets in the US had also registered a marked upturn in fortunes, with the Dow Jones Industrial Average gaining 1.56% and the S&P 500 rising by 1.13% just minutes after opening.

    Looking to the coming days, Connecticut-based expert market analyst Matthew Tuttle told Reuters: "Expect more of the usual - lots of volatility - and it will be interesting to see if the bulls rally this thing or the bears try to sell it off."

    It now remains to be seen if these gains can be held on to by the markets in the days and weeks ahead, while the ability of oil markets to sustain this positive momentum will also likely be tested.


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