Market Update & Important Indicators
Energy shares led U.S. stocks higher Tuesday after oil prices added to the session's gains. A recovery in stocks from lows hit in February has coincided with a rally in oil prices from multi-year lows. While oil prices are still historically low, the rebound has helped alleviate some investors' concerns about how commodities-linked companies will fare later this year. The top 20 S&P 500 gainers were oil companies.
Investors still face challenges. Despite the recent stock-market rebound, the S&P 500 has closed in positive territory for the year only 11 times in 68 sessions, according to the WSJ Market Data Group. Many investors are bracing for what is expected to be a grim first-quarter earnings season. Analysts expect the S&P 500 to show a fifth consecutive quarter of declining revenue, as companies grappled with steep declines in oil prices and a stronger dollar at the start of the year.
European stocks finished higher, rising for a third session as commodity-related companies moved up. The Stoxx Europe 600 rose 0.5% to end at 334.64. Anglo American shares leapt 9.2% after the mining company's De Beers unit reported a third straight month of higher rough-diamond sales. That was the day's biggest gain among Stoxx 600 components. Total and BP popped higher by 1.8% and 1.5%, respectively, as crude prices traded up by more than 3%.
Japan shares rose as the yen weakened slightly Tuesday, delivering relief to investors who are worried that a strong currency hampers efforts to lift the world's third-largest economy. The Nikkei Stock Average finished 1.1% higher as the yen pulled back from its recent gains versus the U.S. dollar. Stocks were on track to post the highest one-day gain since March 10, when the Nikkei Stock Average rose 1.3%. In China, stocks slipped after the country's securities regulator said late Monday it approved seven initial public offerings that are expected to raise a total 2.8 billion yuan ($433 million). South Korea's Kospi ended up 0.6% and Hong Kong's Hang Seng Index gained 0.3%.
Australian shares rose Tuesday as the country's banks rebounded from recent weakness, helped by a business survey suggesting Australian firms are in good shape. The S&P/ASX 200 ended up 44.1 points, or 0.9%, at 4975.6, after earlier falling to a low of 4927.3 at the start of the session in line with weakness in U.S. stocks overnight.
The London Metal Exchange's three-month copper contract was up 2.2% at $4,765 a metric ton at the end of open-outcry trading, having hit a three-day high earlier in the session at $4,766.50 a ton. Brent prices jumped 3.4% to $44.28 a barrel on Tuesday, amid reports that Russia hope to reach a deal to freeze production during key talks among major oil producers in Doha, Qatar, on Sunday. Among the other base metals, aluminum closed up 1.9% at $1,524 a ton, zinc was up 4% at $1,821 a ton, nickel was up 3.6% at $8,830 a ton, lead was up 1.7% at $1,725 a ton and tin was up 0.4% at $16,823 a ton.
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