Oil spurt lifts stocks out of three-day losing streak

Stock markets snapped a three-day losing streak on Tuesday and oil was on its longest run of gains in nine months as moves to ease major economies out of their coronavirus lockdowns lifted sentiment.

It was a turnaround from Monday, when bickering between Washington and Beijing triggered fresh selling, but traders have become used to sudden changes of direction in recent months and there were more to handle in Europe, too.

The pan-European STOXX 600 rose nearly 2% early as a more than 6% jump in oil prices boosted oil stocks, only to wilt on news that Germany’s top court had ruled the European Central Bank’s quantitative-easing programme had “partially violated” the country’s constitution.

The euro and the region’s government debt fell, too, although the court also said the ECB’s measures didn’t amount to monetary financing — where a central bank bankrolls the government — something banned in Germany.

The ruling also didn’t apply to the bank’s new coronavirus PEPP support programme.


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