Economy

Oil price and Wall Street picked up heavily after Christmas season

Both oil prices and Wall Street rose sharply on Wednesday after massive fall on Christmas Eve. The industrial index Dow Jones had a record rise.

When Wall Street closed Wednesday night, Dow Jones had risen by as much as 4.98 percent, the biggest one-day increase for the stock market index ever.

The rise was long awaited. On Christmas Eve, just before a brief holiday for New York investors, the broader Standard & Poor’s index fell more than it ever did on Christmas Eve, according to  E24.

As a result, the Nike share and the Apple stock increased by 7 per cent, for example, writes  Bloomberg.

Standard & Poor’s also picked up heavily on Wednesday and ended up with 4.96 percent. The technology index Nasdaq, which ended up at as much as 5.84 per cent, went its best.

Oil prices rose

The increase in Wall Street occurred in parallel with a sharp increase in oil prices, as Christmas Eve fell by a full 4.5 per cent.

On Wednesday evening, a barrel of North Sea oil was sold on average for the $ 55.19 barrel, up to 8.7 per cent and almost five dollars since midnight. The price of US light oil increased even more. On average, a barrel of oil of this type was traded for $ 46.81 a barrel, 10 percent and $ 4.2 more than at midnight.

Trade Talks

Bloomberg writes that an explanation of the upswing may be Trump’s statement on Christmas Day that the Christmas Eve decline gave investors a “great opportunity to buy”.

They also write that some of the explanation for the strong upturn on Wednesday may be the announcement that a US delegation is going to China in two weeks to start trading talks.

The fact that Jerome Powell still has his job as governor for reports that President Donald Trump has wanted to remove him is also seen as a cause of the uprising, the newspaper writes. Kevin Hassett, economist and director of Trump’s financial advice, has assured investors that Powell is “100 percent safe”.

Turbulent

It has been turbulent on the stock exchanges around the world in recent weeks, where many of the falls have been in the US. The Brexit agreement, the US-China trade war, raising interest rates in the US and a general concern for the world economy have been pointed out as the causes of the falls. As a result of the decline in Christmas Eve on Wall Street, the Japanese Nikkei index also fell sharply in the first Christmas day, with a fall of 5 percent.

(© NTB)

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