US stocks climb in broad rally as crude oil rises

Oil jumps as Goldman Sachs claims oversupply problems over – business live

China’s investment, factory output and retail sales all grew more slowly than expected in April, adding to doubts about whether the world’s second-largest economy is stabilizing, data released on Saturday showed.

USA stocks closed about 1 percent higher Monday, with energy stocks leading as oil prices hit fresh highs for the year so far.

NEW YORK (AP) — Stocks rose in afternoon trading Monday, led by gains in energy companies as the price of crude oil increased sharply.

The price of oil, meanwhile, rallied amid forecasts for a stronger recovery in the market this year.

“With oil prices being back up into that $US40 range, some of the downside that was associated with the energy market … is more subdued at these current prices, or at least held at bay, and the ripple effects from that are also held at bay”, said Jason Pride, director of investment strategy at Glenmede Investment and Wealth Management in Philadelphia.

BUFFETT BUYS APPLE: Warren Buffett’s Berkshire Hathaway bought 9.8 million Apple shares in the first quarter, a stake now worth nearly $1 billion, as the tech giant traded near its lowest price in almost two years, according to regulatory documents released Monday. All ten industry sectors of the Standard and Poor’s 500 index rose, led by energy companies. On the Nasdaq, 1,925 issues rose and 708 fell.

Asian shares have recovered from two-month lows after a rebound in technology giant Apple Corp and oil price gains boosted Wall Street.

Benchmark US crude rose $1.49, or 3.2%, to $47.70 a barrel following news of continued production troubles in Nigeria and an upbeat forecast from Goldman Sachs.

Yahoo shares were up 3.2 percent at $37.65 in premarket trading after a Reuters report that billionaire investor Warren Buffett is backing a consortium of investors to buy the search engine company’s Internet assets.

The Dow Jones industrial average rose 150 points, or 0.9 percent, to 17,685.

The SP energy sector gained 1.6 per cent as oil prices hit six-month highs.

ASIA’S DAY: The Shanghai Composite Index advanced 0.8 percent to 2,850.86 and Hong Kong’s Hang Seng gained 0.8 percent to 19,883.95.

US stock futures pointed to a rise of around 0.3 percent at the open on Wall Street.

Brent crude futures rose 0.6 per cent at $49.29 per barrel, after having risen 2.4 per cent on Monday, when it rallied to $49.47 earlier, its highest since early November. Brent crude, which is used to price worldwide oils, slipped 1 cent to $48.96 per barrel in London.

The Australian dollar rose 0.8 per cent to $0.7345 after minutes of the Reserve Bank of Australia’s May policy meeting surprised some investors with a less-dovish-than-expected tone. Apple is the most heavily weighted member of the SP 500 and so a rise in its stock has an outsize impact on the index. Sydney’s SP-ASX 200 rose 0.6 percent to 5,358.90 and Tokyo’s Nikkei 225 added 0.3 percent to 16,466.40.

In overseas markets, Britain’s FTSE 100 inched up 0.2 percent while the CAC-40 in France slipped 0.2 percent. Asian stock markets rose Monday despite disappointing Chinese factory data and last week’s Wall Street decline.

Futures augured a steady open on Wall Street, with both Dow and SP 500 futures up 0.1 per cent.

West Texas Intermediate crude futures in NY and Brent crude – the global benchmark – both gained more than 3%.

The euro traded at $1.1315, off its two-week low of $1.1283 touched on Friday.

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