Week 9, 2016
U.S. stocks advanced, with the Standard & Poor’s 500 Index headed toward a six-week high, amid gains in banks and commodity shares as oil surged.
The S&P 500 rose 1.3 percent to 1,941.75 at 11:50 a.m. in New York, after increasing 2.8 percent last week, the most since November. The Dow Jones Industrial Average climbed 201.98 points, or 1.2 percent, to 16,593.97. The Nasdaq Composite Index gained 1.3 percent. Trading in S&P 500 shares was about 3 percent below the 30-day average for this time of day.
What’s Happening in the Markets this week
- Pound Slides Most Since 2009 as Johnson Backs ‘Brexit’ Campaign - The pound fell the most since March 2009 after London Mayor Boris Johnson, one of the U.K.’s most popular politicians, said he’ll campaign for Britain to leave the European Union in a June referendum.
- Saudi-Russia Oil Deal Can't Stop Biggest Bull Exodus in 7 Months- A deal between Saudi Arabia and Russia to freeze oil output failed to stem the biggest drop in bullish bets since July. The agreement reached Feb. 16 isn’t going to revive crude prices, according to Goldman Sachs Group Inc.
Commodities in Review
- Oil Glut Will Persist Into 2017 as IEA Sees Prices Capped- The global oil glut will persist into 2017, limiting any chance of a price rebound in the short term as the surplus takes even longer to clear than previously estimated.
- Gold Posts Third Straight Gain on Slumping Equities, Crude Oil - Gold futures had a third straight gain and a gauge of mining shares advanced to a seven-month high as declines in global equities and crude oil boosted demand for the metal as an alternative asset.
- U.S. Index Futures Point to Gain After Stocks' Best Week in 2016 - U.S. index futures advanced amid higher oil prices, indicating equities will extend gains after posting their strongest week since November. Contracts on the Standard & Poor’s 500 Index expiring in March rose 1.1 percent to 1,934.75 at 7.23 a.m. in New York. The index gained 2.8 percent last week, helping cut its 2016 decline nearly in half.
- U.K. Stocks Climb as Pound Declines; JPMorgan Turns Overweight - U.K. stocks advanced for the first time in three days, helped by mining shares, while the pound tumbled after the mayor of London said he’ll back an exit from the European Union.
- Europe’s Economy Strains as Global Slowdown Takes its Toll- Weaker growth and deeper price cuts by companies, as captured in a monthly report by Markit Economics published Monday, will raise concerns about the health of the economy. They may also increase pressure on European Central Bank policy makers to add to stimulus at their next meeting in March.
- Bank of East Asia Jumps Most in Six Years as Li Raises Stake- Bank of East Asia Ltd., the Hong Kong lender targeted by billionaire Paul Singer’s Elliott Management Corp., jumped the most in six years after a major stockholder increased his stake in the company.
- Emerging-Market Stocks Reduce Weekly Gain as Crude Rally Fades - Emerging-market equities pared their first weekly gain this month as oil prices dropped and Africa’s biggest wireless phone company reported a 20 percent decline in earnings. A gauge of developing-nation energy stocks dropped from six-week high as Brent crude fell 3.7 percent on signs a global supply glut is persisting.