Tuesday (10) appears to be one of recovery among commodities in international markets. After yesterday's widespread panic, soybean futures rose between 9 and 10.75 points in the main contracts traded on the Chicago Stock Exchange, followed by corn and wheat, around 7:50 am (Brasília time).
Oil, which lost more than 20% in the previous session, rose more than 9% in New York and more than 8% on the London Stock Exchange. Natural gas, silver and copper also rise, as well as sugar, coffee and cotton on the New York Stock Exchange. Likewise, gold was working in the red, also in the opposite direction of the previous session.
Markets are recovering from what experts say was the worst day for finance since 2008, the year of the last global financial crisis. And this recovery comes, according to analysts and market consultants, in the face of expectations of coordinated measures for more effective control of the coronavirus epidemic, seeking to avoid a recession in the world economy.
Donald Trump's statements about also bringing consistent measures to contain the outbreak were well received by investors and are other information that contributes to the recovery observed this Tuesday.
Oil price rises 10% with hope of stimulus after collapsing the day before
LONDON (Reuters) – Oil prices rose this Tuesday, having jumped around 10%, a day after recording the biggest drop in almost 30 years, with investors eyeing possible economic stimulus and signs from Russia that talks with OPEC remain possible.
US President Donald Trump said on Monday he will take important steps to protect the US economy from impacts from the spread of the coronavirus, while Japan's government plans to spend more than $4 billion on a second package of actions to deal with with the virus.
Brent crude rose $2.99, or $8.7%, to $37.35 per barrel, at 8:28 am (Brasília time). US oil rose $2.78, or $8.93%, to $33.91 per barrel.
Earlier, Brent reached a session high of $37.75 per barrel, while WTI reached $34.42, both with gains of more than 10%.
Both benchmark contracts had fallen by 25% on Monday, to their lowest levels since February 2016, in the biggest daily percentage decline since January 17, 1991, when prices fell with the start of the Gulf War.
The collapse came after the Organization of the Petroleum Exporting Countries (OPEC) and Russia failed on Friday in talks to reach a production reduction agreement, leading to a price war for market share.
But Russian Energy Minister Alexander Novak said he did not rule out joint measures with OPEC to stabilize the market and added that the next meeting of the OPEC+ alliance is planned for between May and June.
Saudi Energy Minister Prince Abdulaziz bin Salman, however, told Reuters he saw no need for an OPEC+ meeting in May or June if there was no agreement on measures to be taken to offset the impact of the coronavirus on demand and the prices.
(By Ahmad Ghaddar)
European stocks recover some losses as oil prices rise
By Sruthi Shankar
(Reuters) - European shares recovered some of their brutal losses from the previous session on Tuesday, as gains in oil prices and expectations for more stimulus eased some of the anxiety surrounding the global economic impact of the coronavirus outbreak.
At 8:03 am (Brasília time), the FTSEEurofirst 300 index was up 4.16%, at 1,379 points, while the pan-European STOXX 600 index gained 3.99%, at 353 points, but was far from offsetting the 7% drop recorded on Monday Monday that took the index into bearish territory — a drop of more than 20% from recent record highs.
Europe's oil index rose 3.6% as oil prices rose about 5% after the biggest daily drop in almost 30 years, which caused extreme volatility in global financial markets. [O/R]
The recovery gained momentum as investors pinned their hopes on coordinated action by governments and central banks around the world to ease the impact of the outbreak. US President Donald Trump promised an "important" step on Monday and said he will discuss a payroll tax cut with congressional Republicans.
. In LONDON, the Financial Times index advanced 4.30%, at 6,222 points.
. In FRANKFURT, the DAX index rose 3.65%, to 11,013 points.
. In PARIS, the CAC-40 index gained 4.49%, at 4,919 points.
. In MILAN, the Ftse/Mib index rose by 3.63%, to 19,146 points.
. In MADRID, the Ibex-35 index registered an increase of 3.76%, at 7,998 points.
. In LISBON, the PSI20 index appreciated by 5.20%, at 4,488 points.
