Global stocks fluctuate as oil prices slip

21/04/2016 05:13 AST

US and European shares fluctuated near the highest levels in at least three months as investors focused on companies with results that beat estimates, offsetting declines among energy producers that slumped with the price of crude.

The dollar strengthened.
The Standard & Poor’s 500 Index swung near 2,100, a level it breached Tuesday for the first time in four months, while equities in Europe were little changed.

Global equities slumped earlier amid a drop in the Shanghai Composite Index spurred by signs the People’s Bank of China has a reduced appetite for monetary easing. The dollar climbed from a nine-month low.

Gains in Japanese government bonds sent yields to record lows. Stocks struggled to extend gains that have pulled them up more than 15 per cent from this year’s low amid signs of stabilization in China’s economy and a rally in crude that took back above $40 a barrel.

Wednesday’s pullback in Shanghai shares rekindled, at least briefly, concern that China’s growth may continue to slow, while crude’s pullback reminded investors of oil’s sway on financial markets.

Corporate earnings have so far failed to set any definitive tone, as bank results surprised while technology companies have disappointed. “There’s been no bearish catalyst that’s surfaced to really knock things down and earnings are spilling in and going as expected,” said Nick Kalivas, senior equity product strategist at Invesco PowerShares in Downers Grove, Illinois, which has about $100 billion in its funds.” We’re now a couple of heartbeats off the all-time high and that’s creating performance anxiety among fund managers, causing people to think the picture’s not as glum.

It’s keeping an underlying bid in the market.’ Stocks The S&P 500 was little changed at 2,101.95 at 10 a.m.

in New York, while the MSCI All-Country Index of shares held near its highest level since Dec. 1.The Stoxx Europe 600 Index erased a drop of as much as 0.5 per cent. Intel Corp. dropped after its first-quarter revenue and forecast for the next three months missedanalysts’ estimates. Lexmark International jumped after the maker of computer printers agreed to a $3.6 billion takeover by Apex Technology Co.and PAG Asia Capital.

Coca-Cola dropped 3.1 per cent after releasing earnings. Despite recent gains, the European gauge has still tumbled 16 per cent since reaching a record a year ago, and optimism over European Central Bank stimulus has given way to skepticism about its ability to boost growth.

Investors are also awaiting the ECB’s next meeting on Thursday for clues about the path of monetary policy.

Benchmark share gauges fell across Asia’s developing economies and the MSCI Emerging Markets Index retreated from a five-month high. Japan’s Topix index closed up 0.2 per cent, after earlier climbing as much as 1.3 per cent.

The Gulf Today