Stocks Rebound As Gloom Eases, Oil And Dollar Pull Back – Investing.com

Stocks Rebound As Gloom Eases, Oil And Dollar Pull Back – Investing.com

Sentiment improves after energy prices ease; US debt deal and Biden-Xi meeting help tooStrong turnaround on Wall Street pulls global stocks higher but inflation threat not goneAussie and lead rebound in FX but energy crisis fears still weigh on euro and pound
Fears of an energy crunch subside, for now

Markets were in a much more cheerful mood on Thursday as some of the gloom around a deepening global energy crisis, soaring inflation and never-ending supply disruptions was lifted. An intervention by Russia’s president, Vladimir Putin, to ease Europe’s shortage by offering to boost exports to the continent sparked a sharp pullback in UK and European gas contracts, dragging oil prices lower too.

Although Britain’s and the EU’s energy woes are far from being resolved, some of the panic appears to have dissipated for now on hopes that there is the political will to deescalate the power crisis. The surge in energy prices is just another unintended side effect of the demand and supply shocks triggered by the economic shutdowns and ensuing blitz of fiscal and monetary stimulus. However, if businesses and consumers are forced to foot the bill of fuel costs going through the roof, the economic impact could be