After the sharp drop in prices at the beginning of the week, the downward trend continued on the European stock exchanges. After interim price gains, the German stock index (DAX) was down 1.41 percent on Tuesday’s close. A similar picture emerged in Paris and Milan. Prices stabilized on Wall Street in New York. The oil price also recovered.
After the black Monday, signs of easing were initially visible on the European stock exchanges on Tuesday: the DAX has meanwhile increased by more than three percent, price gains have also been recorded in Paris and London. Over the course of the day, however, the stock market barometers slid back into the red.
The DAX closed 1.4 percent lower than the previous day. The Vienna Stock Exchange also closed again on Tuesday with losses. The ATX fell 18.52 points, or 0.78 percent, to 2,361.41 units. The Paris CAC index of the 40 largest companies declined by 1.5 percent. In Milan, the minus at the close of the stock exchange was 3.3 percent. Meanwhile, the FTSE-100 index stabilized in London. At the close of trading, the losses were less than 0.1 percent.
Fear of the economic consequences of the coronavirus crisis has dominated the marketplace for weeks. In addition, there has been a dispute between the large oil producers Saudi Arabia and Russia in recent days.
On New York’s Wall Street, which had its worst trading day since the 2008 financial crisis on Monday, things started to pick up again on Tuesday. The US leading index Dow Jones and the index S&P 500 both rose by around 4.9 percent.
The oil price, which dropped temporarily by more than 30 percent on Monday, also recovered on Tuesday. The barrel price for the US variety WTI rose by more than ten percent to $ 34.36.
Moscow sent conciliatory signals in the dispute between Russia and the Organization of Petroleum Exporting Countries (Opec) on Tuesday. “The door is not locked,” Minister of Energy Alexander Novak told Rossija on 24 possible talks about renewed cooperation.
On Friday, Opec and its partners were unable to agree on a cut in production volumes, especially Russia blocked. The largest producer in Saudi Arabia then announced on Sunday that it would cut the oil price sharply.
On Tuesday, Saudi Arabian oil giant Aramco announced it would increase production from April to 12.3 million barrels a day. That is around 2.5 million barrels more than before.
Saudi Arabia wants to “grab market share,” commented analyst Bill Farren-Price of RS Energy. “The taps are open and there have been hard price cuts.”
Source: Apa / Ag.
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