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Global Shares Surge, Echo Wall St Rally03/10 04:49
Global shares rebounded Tuesday from their sharp declines a day before as
global investors wagered that the war with Iran may not last too long.
TOKYO (AP) -- Global shares rebounded Tuesday from their sharp declines a
day before as global investors wagered that the war with Iran may not last too
long.
But the gains fell far short of losses Monday, when oil prices neared $120
per barrel before falling back to about $90. U.S. shares were set to rise, with
Dow futures up 0.4% at 47,970.00. S&P 500 futures rose 0.4% to 6,830.75.
Helping to assuage investors' fears, U.S. President Donald Trump told CBS
News he thinks "the war is very complete, pretty much." He also made other
comments that seemed to threaten intensified action against Iran if it makes
any "attempt to stop the globe's oil supply."
France's CAC 40 added 1.9% in early trading to 54,248.39, while Germany's
DAX surged 2.4% to 23,966.97. Britain's FTSE 100 gained 1.6% to 10,410.08.
In Asia, Tokyo's benchmark Nikkei 225 added 2.9% to finish at 54,248.39
after the government released revised economic data that showed Japan's economy
grew slightly faster than initially estimated in the final quarter of last
year, boosted by solid business investments.
The economy expanded at an annual pace of 1.3%. The initial estimate was a
much weaker 0.2%.
"Today is the rebound, obviously positive comments from President Trump
overnight, we're starting to see the light at the end of the tunnel for the
war," said Neil Newman, a managing director and head of strategy at Astris
Advisory Japan.
"So volatility is going to remain with us but things are certainly looking a
lot brighter today," he said.
Australia's S&P/ASX 200 gained 1.1% to 8,692.60. South Korea's Kospi jumped
5.4% to 5,532.59.
Hong Kong's Hang Seng added 2.2% to 25,959.90, while the Shanghai Composite
index rose 0.7% to 4,123.14.
Share prices have been swinging mostly in tandem with oil prices, which have
gyrated as the war has deepened.
In energy trading Tuesday, benchmark U.S. crude fell $7.56 to $87.21 a
barrel. Brent crude, the international standard, dipped $7.54 to $91.42 a
barrel.
There is a great deal of uncertainty about just how high oil prices will go
and how long they will stay there because of disruptions to Middle East energy
facilities.
If oil prices stay very high for very long, households' budgets already
stretched by high inflation could break under the pressure. Companies would see
their own bills jump for fuel and to stock items on their store shelves or in
their data warehouses.
Concerns have focused on the Strait of Hormuz, a narrow waterway off Iran's
coast that a fifth of the world's oil sails through on a typical day. Iran has
threatened to set fire to ships sailing the strait.
In currency trading, the U.S. dollar edged up to 157.53 Japanese yen from
157.67 yen. The euro edged up to $1.1657 from $1.1636.
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