World stocks ride out oil rout as focus turns to Fed
London. World stocks recovered some ground on Tuesday. Oil prices stabilised, while the dollar edged lower and most other markets were subdued before Federal Reserve Chair Jerome Powell testifies to the U.S. Congress.
MSCI’s world equity index, which tracks shares in 47 countries, was broadly unchanged, with energy companies in Europe and Asia recovering ground from early losses caused by the previous day’s turbulence in commodity markets.
Brent crude initially fell for a second day after a 4 percent slump on Monday, as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers, but they recovered to trade up 0.5 percent, told Reuters.
Europe’s Stoxx 600 was up 0.1 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 percent, snapping two days of gains amid concern over growth in China.
In Europe, technology stocks fell 0.4 percent after U.S. tech giant Netflix missed estimates for growth in subscribers.
“It’s been a fairly sluggish and unexciting start to the week for markets. Whether things get more interesting or not probably depends on what Fed Chair Jerome Powell has to say when he testifies today in front of the Senate Banking Committee”, said Craig Nichol, a macro strategist at Deutsche Bank.
In currencies, the dollar index fell 0.1 percent against a basket of six major currencies to 94.409. The index shed 0.25 percent on Monday, nudging away from a two-week high of 95.241 on Friday.