A much-needed rebound from Brent Crude allowed the Western indices to hold onto their growth this Wednesday – and in some cases, saw them improvement on their initial gains.
It would be nice for oil’s push higher to come from a less troublesome catalyst. Donald Trump’s order for the navy to ‘shoot and destroy’ Iranian gunboats that ‘harass’ American ships cause some investors to return to the black stuff, lifting Brent Crude back towards $21 per barrel with a near 8% comeback. This after it had at one point fallen under $16 per barrel overnight.
The FTSE was a big beneficiary of this move. With BP (LON:BP) and Shell (LON:RDSa) all of a sudden up 5% and 5.8% respectively, the UK index rose more than 2%, returning it to 5760.
The DAX, meanwhile, teased 10400 as it climbed 140 points, with the CAC overcoming its initial reticence to add 1%.
As for the Dow Jones, it climbed more than 400 points after the bell, causing the US index to just about hit 23450.
It has already been an intense week, defined by the unprecedented oil rout. Tomorrow could potentially cause a bit of chaos, with the release of the flash manufacturing and services PMI for April AND the latest US jobless claims reading.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."