Global Stocks Get Boost Owing to Energy Sector Rise!
On Wednesday, global stocks indices witnessed a considerable hike following the rise in oil prices. The prime reason for these slight gains is due to unexpected gains in Energy and Financial sector. These gains are not unexpected though!
Since the mid of month of February, the Stock markets have witnessed growth around the globe. There have been times when oil prices bounced back globally and there were rarely any interest rate hikes to make the economy stable. According to facts released by the US Federal authorities in this period, the firms that were largely commodity driven stood out as the biggest winners in contributing towards taking U.S. indices to an all new height.
The Current State of Economy
When compared with the previous year, current market condition is really encouraging as these broad gains are because of collective efforts of large and small companies, which have turned out to be equally beneficial. There has been a good rise in crude oil prices, especially in nations like Australia where economies majorly rely on export of commodities. The increased Copper prices also resulted in a surge in new debt, which has further lead to investment demand in the Chinese market.
In the beginning of this year, the main concern was stability of Chinese economy. However, now other factors are equally concerning. For instance, Technology shares slumped marginally, and NASDAQ Composite witnessed a downfall. Not to forget the first downfall in last 10-months in US Dollar, continuing with its weakened performance even against Euro. The weak Dollar, however, lead to an increase in Gold prices by about 1.4%. Among those on the gain front, Brent Crude Oil stands as winner with a 2.6% rise, Copper was another gainer in the list.
What Market Analysts Suggest
Currently, global economy is in a comparatively stronger position than before. And, there is hope for a brighter future after the ECB's (European Central Bank). New policies are expected to be rolled out very soon, as part of the Central Bank's proposed package for easing market that was introduced last month.