Shares of energy companies ticked up as investors bet on sectors that would benefit from inflation, rotating out of the technology sector into commodities-linked sectors.
"As the vaccination campaign picks up pace in the Eurozone, we have upgraded energy to a most preferred sector," said strategists at money manager UBS Global Wealth Management, in a note to clients. "We think the 'reflation' phase of the recovery will be characterized by high growth and rising inflation, and underpinned by supportive central banks and fiscal stimulus ... As economies reopen and travel activity resumes, demand for oil and refined products is likely to recover sharply."
Gasoline futures closed on the cusp of a three-year high, reflecting expectations of a rebound in demand during the summer driving season. Natural gas futures rose for the third straight session, closing at a 10-week high.
Write to Rob Curran at firstname.lastname@example.org
(END) Dow Jones Newswires