As the Standard & Poor’s 500 Index erased its 2009 loss, oil has gained 2.4% on May 4, 2009. The National Association of Realtors’ index of signed purchase agreements increased for a second month. Equities markets in China and Australia rose on optimism the worst of the global recession has passed.
“The market has been surprised to the upside by the data coming out of the U.S.,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “The strength of late is definitely an indication that markets are sensing a bottom in the economy.”
Spending on US construction unexpectedly increased in March 2009 for the first time in six months as raise in commercial and government projects overshadowed a fall in home building.
Crude oil also gained as the dollar traded near a one-month low against the euro. Investors seek purchases of commodities and oil as a hedge against inflation as the currency turn down.
Brent crude oil for June 2009 settlement was at $54.21 a barrel, down 37 cents, on London’s ICE Futures exchange at 11:12 a.m. Singapore time. The contract increased $1.73, or 3.3%, to end the session at $54.58 a barrel on May 4, 2009. UK financial markets were closed on May 4, 2009 for a holiday.
