U.S. oil breaks through $70, dollar hits fresh 2018 high

  • 05/06/2018
  • Source: Reuters
  • by: Dhara Ranasinghe, Tommy Wilkes

Oil prices hit their highest since late 2014 on Monday, driven by a deepening economic crisis in Venezuela and worries that the Unites States could re-impose sanctions on Iran, while stocks firmed and the dollar surged to another 2018 high.

With trading thinned by a holiday closure in London, European shares opened higher, boosted by energy stocks as well as encouraging earnings updates.

“It’s a positive environment for the equity markets,” said Niels Christensen, chief analyst at Nordea in Copenhagen.

Nestle shares also gained after the Swiss-based food firm agreed to pay Starbucks $7.15 billion in cash for the rights to sell the U.S. coffee chain’s products around the world.

Most Asian markets also rose after Friday’s tame reading on U.S. wage growth lessened the chances of a pick-up in the pace of interest rate hikes by the Federal Reserve. Gains were capped by Sino-U.S. trade tensions.

U.S. equity futures pointed to a positive open for Wall Street.

The day’s eye-catching moves came in energy markets.
 Source: Reuters
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