“According to the latest news, US State Secretary Mike Pompeo has also reached out to Saudi Arabia inviting them to ‘reassure’ stability in oil, and hence, the financial markets,” she wrote in a note to clients.
“There are even rumours that the US would strike a deal with Saudi Arabia, which would include Saudi leaving OPEC. We are not sure how solid the latter threat is, but one thing is sure, with the size of the cake shrinking this fast, the fate of all oil producer countries depends on Saudi Arabia.”
Among Australian stocks, the benchmark index closed 339 points higher at 5181 points. However, this is nearly 2000 points lower than the highs of 20 February.
CSL ended the day 12 per cent higher at $312.68, the largest one day gain for the company since January 2017. The healthcare sector increased 11.4 per cent, driven by a 25 per cent rise in Ansell to $29.03 after it confirmed guidance, an 11.8 per cent rise in Ramsay Health, and a 9.8 per cent rise in Cochlear to $182.81.
Financials also out-performed with gains of 8.8 percent, as Commonwealth Bank surged 10.9 per cent to $63.95 and Westpac gained 8.5 per cent to $16.16. Consumer staples and consumer discretionary both gained about 8 per cent. Materials under-performed with a rise of 4 per cent.