BoJ, oil hopes, send Europe shares higher

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Shares jump for joy at a shock policy easing from the Bank of Japan, and oil holds on to hopes of a coordinated Russian-OPEC production cut – even as analysts turn sceptic over whether such cuts will ever happen. Sara Hemrajani reports.

BoJ, oil hopes, send Europe shares higher

Markets in Asia and Europe are ending the week – and the month – on an optimistic note.

That’s after Japan’s central bank shocked with a monetary stimulus boost.

The move spurred traders to snap up equities, bonds and commodities.

Oil prices gained nearly one percent, getting an extra lift from speculation of a possible deal to curb the supply glut.

Russian officials are now saying they’re in contact with other oil producing nations — While Venezuela has proposed a meeting in February.

But analysts are sceptical of the outcome.

Commerzbank economist Peter Dixon.

SOUNDBITE: Peter Dixon, Global Financial Economist, Commerzbank, saying (English):

“It’s by no means clear that this is something which everyone is going to agree to. It certainly isn’t clear that it’s even going to happen because I think we’ve heard some rather conflicting signals over the course of the past 24 hours.”

The recent oil rout has also sparked concerns about Shell’s $52 billion takeover of BG Group, which was approved by shareholders on Thursday.

SOUNDBITE: Peter Dixon, Global Financial Economist, Commerzbank, saying (English):

“Given what’s happened to the cost of extraction, energy extraction, over the course of recent years, which has put major pressure – or will put major pressure – on the prices of the energy majors. I think that any deals with prices at current levels is going to enter into dangerous territory.”

Friday’s rally is unlikely to overshadow what’s been the worst start to a year for stocks since 2008.

The sell-off wiped off $7 trillion from the markets worldwide.

The global financial turmoil pushed investors to the safety of gold – the precious metal is up nearly 5 percent for January.

Tags : higher, shares, europe, Send, Hopes, Boj

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