Crude oil is driving strong gains on Wall Street this morning, after a report that both Russia and Saudi Arabia had agreed to freeze output ahead of a producers meeting this coming Sunday
By Paolo Palazzi-Xirinachs
Tuesday, April 12, 2016
Oil has rallied above $41 a barrel, helping boost optimism on global growth and lifting stocks and commodity prices across worldwide indices. The rise in oil prices – the highest in five month - also benefited from news by Russia's Interfax News Agency also reporting that the final decision to freeze production will not depend on Iran.
The S&P 500 climbed 0.8% at 12:30 p.m. New York time. Energy shares jumped 2.8%, offsetting the IMF’s comments on Tuesday that the world economy will grow 3.2% this year, down from a projected 3.4% in January. Chesapeake Energy Corp. and Marathon Oil Corp. soared more than 13%, as energy companies accounted for all 10 of the biggest gainers today.
The benchmark gauge for U.S. stocks fell on Monday, after an advance fizzled in afternoon trading. Alcoa Inc., the aluminum company, unofficially kicked off the reporting season yesterday, posting first-quarter sales that fell short of projections. Shares of the aluminum producer sank 4.2% today.
In global economic news, the International Monetary Fund warned on Tuesday about persistently slow growth in developing economies, highlighting a growing concern that these countries will not regain the high rates of growth any time soon that distinguished them in the past. Although emerging economies, headlined by China, Brazil, India and Turkey, account for a significant share of the global economy, their pace of growth remains sluggish – a good 2% below the average of the last decade.
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