Oil macro analysis, page-106

Wall Street jumps as oil steadies

US stocks moved sharply higher at the end of trade amid a stabilisation in oil prices.
At the closing bell, the Dow Jones Industrial Average rose 1 per cent and the S&P 500 climbed 0.9 per cent. The Nasdaq Composite gained 0.7 per cent.
Stocks have been volatile in recent sessions, with weakness in commodities weighing on broader markets.

US oil prices ended up 0.9 per cent at $US36.14 a barrel.

Wall Street closed higher Monday in light holiday trade, though concerns about US high-yield debt and the energy sector kept a lid on gains.
“How much lower can [oil prices] go before we really start seeing not just damage, but people going under?” Augustin Eden, a research analyst at Accendo Markets, said.
Should oil prices meaningfully stabilise or gain ground, “we can be a bit more optimistic about the outlook for [the] global economic recovery, “ Mr Eden said. He added that market moves were volatile partly because volumes were lower ahead of the holidays, with some traders out of the office.

Battered energy and basic resources companies rose 1.2 per cent and 0.6 per cent, respectively, as commodity prices stabilised.
Royal Dutch Shell was up 2 per cent and BP was up 2 per cent.

BUSINESS SPECTATOR