Stocks still 'best game in town' as energy prices decline

European shares rally on stimulus hope while U.S. Stock futures trade flat

Dec 2, 2014 @ 12:01 am

By Bloomberg News

European stocks rose, as energy shares rebounded from six days of losses, and optimism grew over stimulus prospects before the European Central Bank meets later this week.

The Stoxx Europe 600 Index added 0.4% to 347.07 at 11:06 a.m. in London, paring earlier gains of as much as 1%. Oil and gas stocks ended their longest losing streak in almost 18 months. The Stoxx 600 lost 0.5% Monday as factory indexes fell in China and Europe, stoking concern about slowing inflation and global growth.

“Stocks are still showing they are the best game in town as energy prices sink, dragging deflation expectations,” said Daniel Weston, chief investment officer at Aimed Capital GmbH in Munich. That could prompt “further ECB action to come to support growth and an inflation target,” he wrote in an e-mail.

The Stoxx 600 has rallied 12% from an October low as ECB President Mario Draghi said the lender may broaden its asset-buying program to include government bonds, while central banks in Japan and China boosted stimulus measures. The ECB’s next policy meeting is on Dec. 4. More than half the economists in a Bloomberg survey expect the central bank to buy government bonds if it expands its stimulus program.

Germany’s DAX Index briefly rose to 10,038.21, above its highest close. The DAX climbed as much as 0.8% before declining 0.2%. Standard & Poor’s 500 Index futures advanced 0.2% and the MSCI Asia Pacific Index added 0.3% Tuesday.

ENERGY STOCKS

A gauge of oil and gas shares rose 1.9% for the best performance among 19 industry groups in the Stoxx 600. Afren Plc and Genel Energy Plc surged more than 8%. Energy stocks tumbled 10% in the six days through Monday as oil prices deepened a slump after the Organization of Petroleum Exporting Countries signaled it would take no action to ease a global glut.

Mining shares also gained. BHP Billiton Ltd., which gets more than half its revenue from iron ore and petroleum, climbed 2.4%. Anglo American Plc advanced 1.6% and Rio Tinto Group added 1.2%.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Regional brokerages are picking up assets, advisers from wirehouses

Senior columnist Bruce Kelly discusses with deputy editor Bob Hordt the impact of big brokerage houses pulling back on recruiting and regionals promising recruits less bureaucracy.

Latest news & opinion

Regional broker-dealers quietly making comeback now, but the future remains uncertain

After a period of decline, the regional brokerage industry is scoring recruiting gains at the expense of wirehouses.

10 tips for hiring top young advisers

Hiring is not easy and retaining good employees can be even more difficult. Here's a roadmap for bringing on new advisers and training them — and even firing them, if necessary.

Kestra Financial latest broker-dealer to be put up for sale

The independent B-D's owner, Stone Point Capital, has tapped Goldman Sachs to lead the deal.

Wells Fargo Advisors 2019 comp plan sees little change

But lowest-producing advisers face a pinch in pay.

8 adviser fears for 2019

Interest rates, trade wars and bear markets, oh my! Looking across the industry, here are some of the biggest concerns heading into the new year.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print