Oil slides, caps gains on Wall Street

Tue Aug 9, 2016 4:25pm EDT
 
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By Lewis Krauskopf

NEW YORK (Reuters) - Oil prices slipped on Tuesday amid worries about a stubborn global petroleum glut, weighing on energy shares and limiting gains on Wall Street after the S&P 500 and Nasdaq ticked up to intraday record highs.

Wall Street eked out gains following a strong session for European stock markets, with Germany's DAX index .GDAXI jumping 2.5 percent to its highest of 2016.

MSCI's all-country world index .MIWD00000PUS rose 0.5 percent and touched its highest level since late August of 2015.

The pound fell for the fifth day in a row after a Bank of England policymaker said the central bank will probably have to loosen monetary policy further if the U.K.'s economy worsens. The Bank of England cut interest rates last week for the first time since 2009 in the wake of the country's vote to leave the European Union.

With bond yields low in developed economies as central banks maintain accommodative monetary policies, investors have sought equities for yield, particularly stocks with high dividend payouts.

"We're probably going to consolidate and then head higher," John Canally, chief economic strategist for LPL Financial, said of the U.S. stock market. "The odds of a U.S. recession are low. The odds of a global recession are low. Central banks are cooperating."

The Dow Jones industrial average .DJI rose 3.76 points, or 0.02 percent, to 18,533.05, the S&P 500 .SPX gained 0.85 point, or 0.04 percent, to 2,181.74 and the Nasdaq Composite .IXIC added 12.34 points, or 0.24 percent, to 5,225.48.

Gains in healthcare .SPXHC and tech .SPLRCT sectors were offset by energy .SPNY share declines.   Continued...

 
People walk through the lobby of the London Stock Exchange in London, Britain November 30, 2015. REUTERS/Suzanne Plunkett