European stocks eke out gains as a record oil rally plays down recession frets

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European stocks eke out gains as a record oil rally plays down recession frets

On Thursday, the 2nd of April 2020, a slew of European stock indices had managed to wind up the day in the greens followed by an energy stocks-driven late-session rally, after the US President Donald Trump had been quoted saying that he had spoken with the Russ President Vladimir Putin and had been anticipating a Saudi-Russ oil alliance in a near-term outlook that could cut global oil production between 10 million to 35 million barrels per day.

On top of that, investors’ beliefs over a possible revamp in the crude oil industry had also rooted deeper following release of a Saudi state-backed media report that said the world’s largest crude oil exporter Saudi Arabia was going to arrange a meeting of the major crude oil producers in over the coming days to rebalance the global crude oil futures’ prices which had been hovering near their multi-year lows for several weeks.

Besides, following Trump’s hints on a possible reignition in the crude oil futures’ prices, the regional pan-European STOXX 600 wrapped up the volatile session 0.4 per cent higher despite a hesitant opening of the day.

Meanwhile, citing the Thursday’s European stock indices’ (April 2nd) gains would likely to be short-lived, an ING analyst, Peter Vandem Houte wrote in a client note on Thursday (April 2nd), “With most euro zone countries in partial or full lockdown, GDP contraction this year is likely to rival the Great Recession.

While the sentiment indicators for March were bad, they probably can be thrown in the bin immediately. After four months of increases, economic sentiment nosedived in March. ” Citing statistics, on Thursday’s (April 2nd) European market closure, London’s FTSE 100 gained 0.47 per cent to 5,480.22, but London’s mid-capped index FTSE Mid 250 shrugged off 0.76 per cent to 14,436.80, while Frankfurt’s DAX added 0.27 per cent to 9,570.82 and French CAC 40 had winded down the day 0.33 per cent higher to 4,220.96.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 ended up the day flatlined at 6,574.10 after falling as much as 3.1 per cent in the late mid-day trading hours, while Italy’s FTSE MIB had managed to round off Thursday’s market (April 2nd) 1.75 per cent higher to 16,834.03 after slipping nearly 2 per cent in the late-afternoon trading.