Crude Rally Helps Boost European Stocks

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A rally in oil prices amid growing demand and lower US crude stockpiles saw energy stocks in Europe jump more than 2% on Thursday, while solid earnings reports overshadowed concerns about the Delta variant.

OPEC also said that it would increase production by less than expected, which could result in a supply shortfall and support oil prices in the near future.

European stocks, as measured by the pan-European STOXX 600 , closed up 0.62% following a strong run from energy service providers like TechnipFMC (NYSE: FTI ).

The spike in oil prices also supported US stock markets, with the S&P 500 reaching fresh highs amid a decline in weekly jobless claims and buoyant energy stocks.

In the Northern Pacific, Japanese shares ended lower, anchored by fears that a resurgence of infections would ultimately slow down the economic recovery.

The Nikkei share average fell 0.29% to 28 707.04, while the broader Topix slipped 0.22% to 1 939.21.

In the local market, the FTSE/JSE All Share Index ended in the green, boosted by higher commodity prices, with oil reaching its best level in over two years.

Conversely, the local currency fell the most in two weeks as emerging market currencies stumbled on better-than-expected US employment data.

At 19h30, the rand was trading at R14.43/$, R19.86/£, and R17.11/€.

Gold prices rose by over 1% amid a weakened dollar environment and lower Treasury yields as investors focused on the US non-farm payrolls report.

PSG Wealth Daily Investment Update, 2 July 2021

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