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Oil Prices Rise; US & European Stocks Rebound

  • VOA News

A man looks at an electronic board displaying stock prices at a brokerage house in Beijing, Jan. 26, 2016.

A man looks at an electronic board displaying stock prices at a brokerage house in Beijing, Jan. 26, 2016.

U.S. stocks made strong gains Tuesday, and European stocks advanced when oil prices recovered some of the ground they lost in recent volatile trading.

Analysts said investors also were encouraged by strong earning reports by major corporations.

In New York, the Dow jumped 1.8 percent, the S&P gained 1.4 percent and the NASDAQ rose nine-tenths of a percent.

European stocks also advanced, with London's FTSE gaining six-tenths of a percent, while Germany's DAX moved up nine-tenths of a percent and the French CAC rose more than 1 percent.

Earlier, before oil prices recovered, Asian markets took large losses. China's Shanghai and Shenzhen indexes fell 6 percent to close at their lowest level in 14 months. The indexes in Hong Kong and Japan lost 2 percent each, while markets in Taiwan, Singapore and Thailand also sustained losses.

Low oil prices are a boon for most of the economy, but they hurt share prices of energy companies. Investors apparently are seeing low energy demand as a sign of a slowdown in the global economy.

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