Energy shares and oil prices rallied on Wednesday after a ship ran aground in the Suez Canal, while cyclical sectors climbed as business activity surveys suggested a strong rebound for the US economy was under way.
Wall Street’s blue-chip S&P 500 index rose 0.7 per cent, led by a 3.2 per cent gain for energy stocks. Brent crude, the international oil marker, climbed 5.8 per cent to $64.29 a barrel, rebounding from its biggest weekly fall since October.
The moves came as a giant container ship remained stuck on the Suez Canal after blocking the quickest seaborne route between Europe and Asia for more than a day. Before Wednesday, Brent had fallen 15 per cent since early March.
“The oil market sell-off has been given a