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Friday, February 26, 2016
Wall Street Update: Global market rally as oil up
At this point, oil cycle is everything and the global market rallied after crude oil goes up as market focused on an upcoming meeting of major oil producers that investors hope could stabilize volatile petroleum markets.
Crude oil futures rose more than 2% after Venezuela reaffirmed an oil producers meeting in mid-March that would include Saudi Arabia, Russia and Qatar. Prior to the announcement, oil was down as much as 3%.
U.S. crude futures CLc1 settled up 92 cents, or 2.9%, at $33.07 a barrel.
Brent crude futures LCOc1 finished up 88 cents, or 2.6%, at $35.29 a barrel, hitting a three-week high.
The US market is also looking bullish as a robust data on durable goods orders indicated a recovery in the manufacturing sector
The Dow Jones industrial average improved by 1.29% to 16,697.36, the S&P 500 added 21.93 points, or 1.14%, to 1,951.73 and the Nasdaq Composite gained 39.60 points, or 0.87%, to 4,582.21.
European equity markets also showed some positivism after this week's downtrend that was caused by fears of Britain taking the exit route from the EU.
Europe's FTSEurofirst 300 lost almost 4% since Tuesday, saw a gain of 2% as risk appetite returned.
Equity markets and oil prices have moved in sync this year so far, but analysts say they expect the two to decouple in the not-too-distant future.
MSCI's gauge of global stock markets was up by 1.1%.
Federal Reserve policymakers have been concerned about the erosion in inflation expectations which could impair efforts to boost domestic price growth to their 2-% goal.
The yield premiums on regular U.S. Treasuries over Treasury Inflation Protected Securities, known as inflation breakeven rates, have risen from their lowest levels since early 2009 in recent days with the rebound in oil prices.