EU stocks enjoy ‘Santa Claus rally’ as oil rises


AFP

LONDON/HONG KONG–Europe’s main stock markets rose strongly on Monday in a renewed ��Santa Claus rally�� powered by a modest recovery in oil prices, dealers said. In late morning deals in the British capital, London’s FTSE 100 index of leading shares jumped 1.02 percent to 6,611.96 points compared with Friday’s close. Frankfurt’s DAX 30 won 0.67 percent to 9,852.58 points and in Paris the CAC-40 leapt 1.04 percent to 4,285.94. ��As the markets begin to wind down for Christmas, the Santa rally was still being felt … with a quiet economic day ahead,�� said Spreadex trader Connor Campbell. ��After spending the last six weeks as the Scrooge of the economic world, oil has undergone a slight rejuvenation; in this current climate, any price above US$60 per barrel for Brent crude oil is a signifier of hope for the markets.�� Global oil prices rebounded slightly, with analysts predicting the sector has bottomed out after plunging by around 50 percent since June. Asian Stocks Rise in Thin Trade, Tracking Wall Street Gains Asian markets rose in thin trade Monday ahead of the festive season, tracking cues from Wall Street where stocks surged in a Federal Reserve-fuelled ��Santa Claus rally�� last week. Stabler oil markets also provided support, with crude prices ticking higher as analysts predicted the sector had bottomed out after plunging almost 50 percent since June. Sydney soared 1.94 percent, or 103.35 points, to 5,442, Seoul gained 0.68 percent, or 13.14 points, to 1,943.12, Hong Kong climbed 1.26 percent, 291.94 points to 23,408.57 and Shanghai was up 0.61 percent, or 18.85 points, to 3,127.45.