- Global equity markets shrug off higher oil prices to send aviation stocks higher in start of trading in 2009;
- A late Santa rally, as the economic outlook remains bleak.
Global stock markets have started on a positive note in 2009 after a disastrous 2008. US stocks rallied in the first trading day of 2009, with the Dow Jones Industrial Average surging 2.9%, while European stocks also rose strongly.
Selected airports daily share price movements (% change): 02-Jan-08
European selected airlines daily share price movements (% change): 02-Jan-08
Asia Pacific selected airlines daily share price movements (% change): 02-Jan-08
Various aviation suppliers also had a strong day, led by lessor, AerCap.
Selected Aviation suppliers daily share price movements (% change): 02-Jan-08
US airline shares were also broadly higher, led by US Airways (+8.5%), despite further increases in the price of oil on expectations OPEC will carry out its largest production cut ever, and escalating violence in Gaza. Light sweet crude for February delivery (Nymex) rose USD1.74 (+3.9%) to settle at USD46.34 per barrel on 02-Jan-09, capping a 23% increase in the oil price in a week - the biggest weekly percentage gain since Aug-1986.
North America selected airlines daily share price movements (% change): 02-Jan-08
But share prices will be driven in 2009 by the outlook for the economy and associated merger and acquisition activity. The global economic outlook remains bleak, particularly for the world's largest economy, the US. Consumer Confidence in the US fell to a new all-time low in Dec-08, with the The Conference Board noting the overall economic outlook "remains quite dismal for the first half of 2009", with only a "modest recovery" in the second half.
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