Oil prices have returned, oil companies’ stocks are rising

Global stock markets posted small gains yesterday, supported by a rebound in oil prices from 11-year lows, as investors reversed some of their bearish bets on battered commodities.

European stocks followed Asia higher. The pan-European FTSEurofirst 300 gained 0.4 percent after two days of declines, while U.S. stock futures suggested Wall Street stocks could rally on Monday.

Oil stocks such as BP and Royal Dutch Shell rose two percent as oil prices showed signs of stabilizing after falling to new lows in Monday.

“The price of oil is still the main driver of market sentiment right now for equities, but I’m not sure if it will hold above these lows given concerns about oversupply,” said Hantec Markets analyst Richard Perry. .

The dollar was flat against the euro and yen. Traders looked to US economic data for new direction, although the approaching holiday season kept ranges tight.

Brent crude prices looked set to make their first daily gains in five, keeping oil at the top of investors’ watchlist.

Brent futures traded up 17 cents at $36.52 a barrel, rebounding from an 11-year low of $36.04 hit on Monday. U.S. West Texas Intermediate (WTI) crude futures rose 32 cents to $36.13 a barrel, from a 2009 low of $33.98 hit in the previous session.

After falling about 35% this year amid a supply glut, sentiment toward stricken oil has remained fragile.

European stocks were generally higher. Spain’s IBEX returned to near three-month lows on Monday on fears of political instability after the most inconclusive election in the country’s history.

“The Spanish election didn’t help market sentiment in Europe, but it’s going to be fairly quiet between now and January 4, with a bit of noise from oil,” said Chris Scicluna, head of economic research at Daiwa Capital. London Markets.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent after Wall Street posted solid gains overnight.

China’s CSI300 index was slightly higher, erasing earlier losses, while Japan’s Nikkei stock index ended up 0.2 percent, albeit above session lows.