US stocks rebound, ignore oil price drop

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NEW YORK CITY: US stocks snapped a three-day losing streak on Thursday (Friday in Manila), shrugging off another fall in oil prices as Japanese stocks continued to slide on worries about a rising yen.

Analysts said Wall Street was primed for a technical bounce after the Dow lost about 2.0 percent in the prior three sessions on worries about a rout in oil and other commodities
Oil prices Thursday sank to yet another multi-year low, but Dow member Chevron and ConocoPhillips both rose after announcing similar cuts to their 2016 capital budgets of about 25 percent.

“You have a day when the market didn’t correlate with energy,” said Art Hogan, chief market strategist at Wunderlich Securities. “That caught a lot of people by surprise.”

The Dow retreated from a mid-session gain of 1.2 percent, but still finished up 0.5 percent. US markets are looking ahead to Friday’s retail sales report for November, seen as a key barometer of the important holiday shopping period.


Tokyo’s benchmark stock index fell for a third straight session, ending down 1.3 percent as the strengthening yen again weighed on exporters.

Christopher Vecchio, currency analyst at DailyFX, said the Bank of Japan is “disinclined” to more stimulus as announced policies course through the economy.

On Thursday, the dollar ticked up to 121.62 yen from 121.40 yen on Wednesday, when it touched its lowest level in more than a month. The greenback is still well down from levels above 123 yen earlier this week.

The FTSE 100 in London ended down 0.6 percent after the Bank of England, as expected, left borrowing costs unchanged at a record low of 0.5 percent.

London-listed Glencore jumped 7.7 percent after accelerating a plan to reduce debt and slashing its 2016 capital budget to $3.8 billion from the prior $5 billion.

On the Paris market EDF, the world’s biggest operator of nuclear power plants, rose 6.1 percent after raising some of its earnings targets and announcing cost cuts.

In New York, Twitter shares jumped 6.6 percent on news that it is rolling out a new feature to allow marketers to reach people who use the messaging platform without logging in.

One day after surging on news of their merger talks, Dow Chemical lost 3.6 percent, while DuPont added 0.1 percent. Some analysts warned a deal could face tough scrutiny from antitrust regulators.

Wal-Mart Stores rose 0.7 percent on news it would launch its own smartphone mobile payments app, challenging similar offerings from Apple, Samsung, Google and others.

AFP

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