Stocks rally runs out of gas as oil rebounds

A rally in global stocks ran out of steam on Tuesday despite a jump in Chinese factory activity providing a surprise boost for the virus-hit global economy, while oil prices rebounded from 18-year lows.

Asia stocks picked up the baton from a rally on Monday that saw all three of Wall Street’s main indices jump more than three per cent. That carried through to Europe, where gains averaged more than one per cent in midday trading. But as the open of trade approached in New York, European gains stocks bobbed in and out of positive territory.