Sunday, January 24, 2016

World Stocks, oil soar due to monetary support

Stocks and oil have rebounded strongly thanks to hints of more monetary policy support by the European Central Bank and bargain-hunting from bruised investors.

World stocks recorded their biggest rise in a month and Asian stocks their best day in three months on Friday.

Oil rallied around 5 per cent for the second day in a row, recovering from 12-year lows to above $US30 a barrel.

The surge comes a day after ECB president Mario Draghi signalled the central bank would ease policy further at its next meeting, in March to combat fading growth and disinflation, a message he reiterated at the World Economic Forum in Davos.

European stocks followed Asia’s lead. The region’s main indices rose around 2 per cent for the second consecutive day. Remarkably, given the recent steep declines, some were on track for their best weekly performance in two months. - AAP/news.com.au
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