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Global bonds benefit on Royal Dutch Shell bid, dollar slips


NEW YORK (Reuters) – Global equity markets rose on Wednesday, with European shares attack eight-year highs on Royal Dutch Shell’s (RDSa.L) $70 billion bid for appetite organisation BG Group (BG.L), while a dollar slipped forward of a recover of U.S. Federal Reserve minutes.

Equity markets quickly sole off after U.S. Energy Information Administration information showed stockpiles of U.S. wanton saw their largest weekly build given Mar 2001, heading wanton oil prices to tumble further.

News of a initial vital partnership in a appetite attention in some-more than a decade increased European shares, led by a convene in appetite bonds that had tumbled as prices for wanton oil and gas plunged given final summer.

The STOXX appetite zone index .SXEP in Europe, that rose as most as 6.1 percent, was final adult 2.6 percent, while a pan-European FTSEurofirst 300 index .FTEU3 of heading informal shares was adult 0.04 percent.

“The zone has been developed for converging given a bearish opinion for oil prices,” pronounced Saxo Bank merchant Andrea Tueni. “We could see other takeovers in a attention in a entrance weeks and months.”

Rick Meckler, boss of sidestep account LibertyView Capital Management LLC in Jersey City, New Jersey pronounced Shell’s bid is a large understanding in a hard-hit zone that has been a weakest partial of a equity market. But U.S. appetite shares lagged, with oil super-majors Exxon Mobil (XOM.N) and Chevron (CVX.N) down 0.9 percent and 1.1 percent, respectively.

“What people are unequivocally watchful for are earnings, that possibly will give support for a subsequent turn or lead to a sell-off of sorts,” Meckler said.

The blended guess for U.S. first-quarter corporate gain expansion is a disastrous 2.8 percent, according to Thomson Reuters data, though incompatible a appetite sector, a gain expansion guess is adult 5.4 percent.

The Dow Jones industrial normal .DJI rose 15.31 points, or 0.09 percent, to 17,890.73. The SP 500 .SPX gained 1.42 points, or 0.07 percent, to 2,077.75 and a Nasdaq Composite .IXIC combined 20.32 points, or 0.41 percent, to 4,930.55.

MSCI’s all-country universe index .MIWD00000PUS, that measures equity opening in 46 countries, rose 0.22 percent.

The dollar retreated after a Bank of Japan kept financial process unchanged, following a greenback’s nearby three-week high opposite a yen on Tuesday.

The greenback also fell forward of a recover of Fed mins during 2 p.m. (1800 GMT) and a start of a U.S. gain deteriorate that could uncover a disastrous impact of a clever banking and check a long-expected rate travel in a world’s largest economy.

The dollar strew 0.3 percent to 119.90 yen JPY=. The dollar index .DXY fell 0.13 percent to 97.706, and a euro EUR= gained 0.1 percent to $1.0824.

Oil prices fell next $58 a tub as attention information showed a larger-than-expected weekly boost in U.S. stockpiles and as Saudi Arabia reported record outlay in March.

Brent May wanton LCOc1 was down $1.91 during $57.19 a barrel. May wanton CLc1 forsaken $2.31 to $51.67.

Nervous investors gathering safe-haven German Bund yields tighten to record lows on concerns over Greece’s ability to solve a debt crisis.

German 10-year yields DE10YT=TWEB slid to 0.156 percent, only above a record low of 0.152 percent strike final week. Yields after rose to 0.165 percent.

U.S. supervision bond prices fell, with a produce on a 10-year Treasury note US10YT=RR adult 2/32 in cost to produce 1.9004 percent.

(Reporting by Herbert Lash; Editing by James Dalgleish)

Article source: http://www.reuters.com/article/2015/04/08/us-markets-global-idUSKBN0MZ00J20150408

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