Market news: Oil prices rise as Wall st bounces back

World stock markets and Oil prices are up following a Wall street bounce-back overnight.

Oil prices rise as Wall street bounces back
Source: Bloomberg

Wall street gained in technology and energy shares on Wednesday, while oil bounced back after a steep sell-off.

Analysts suggest the moves came in response to US government data released on Wednesday that forecasts strong demand in oil. The US government data showed strong demand for gasoline and diesel.

Brent crude prices were at 95 cents, at $63.48 a barrel, U.S. crude futures settled $1.20, or 2.25%, at $54.63 a barrel.

US stocks also rose on speculation that the Federal Reserve might be less heavy-handed on interest rate hikes, after a report from MNI suggested that the Fed may pause its rate hiking cycle in Spring 2019.

Technology shares Inc, Alphabet Inc and Facebook Inc rose more than 1% and Energy advanced with a rise in oil prices.

The Dow Jones & S&P 500

The Dow Jones Industrial Average fell 0.95 points, to 24,464.69, the S&P 500 gained 8.04 points, or 0.30 %, to 2,649.93, and the Nasdaq Composite added 63.43 points, or 0.92% to 6,972.25.

The benchmark S&P 500 stock index ended higher after falling 3.5 % over the previous two sessions, while The Dow Industrials ended little changed in lead up to the US Thanksgiving holiday.

Federal Reserve meeting

The market remains calm in response to the Federal Reserve meeting next week. IG market Analyst, Kyle Rodda says the Fed Funds futures have reduced their bets on the number of rate hikes.

“December’s telegraphed hike is being priced again at a 75% chance, but after, if traders are a good barometer, rates in 2019 are looking very flat.”

He says the Fed decision, and the absence of developments in other issues like the Trade War or Brexit, is what is halting risk-off sentiment.

“It opens the risk now that markets could be all too wrong, and a spike in volatility will arrive if traders were to once again adjust expectations.” Mr Rodda said.

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