Japanese resource stocks opened higher after commodity prices rose in London, building on gains in Europe on better- than-expected earnings and speculation that the worst of the global recession is over. Industrial output in Japan rose for the first time in six months while UK consumer confidence increased to the highest level in a year.
“There are a little bit better signs for the international economy,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. “It is still a market where there is a lot of inventory around and that’s putting a cap on the oil price.”
Other commodities also increased on April 30, 2009. The Reuters/Jefferies CRB Index of 19 commodities increased 1.22 points, or 0.6%, to 222.39, the highest since April 17, 2009.
Oil prices had been buffeted earlier this week on assumption that global health concerns about the spread of swine flu would trim demand for fuel.
Mexico has been the focal point of the outbreak of the swine flu virus. The World Health Organization has confirmed cases in 11 countries, including the US Twenty states have identified likely or confirmed cases of swine flu.
Brent crude for June 2009 settlement was at $50.51 a barrel, down 29 cents, at 1:57 p.m. Sydney time on London’s ICE Futures Europe exchange.
