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NEW YORK (Reuters) - Investors are gauging how far a rally in beaten-down energy shares could run, as an expected recovery for the coronavirus-hit economy clashes with skepticism about the long-term prospects of fossil fuels.
FILE PHOTO: The Charging Bull or Wall Street Bull is pictured in the Manhattan borough of New York City, New York, U.S., January 16, 2019. REUTERS/Carlo Allegri/File Photo
Energy shares overall soared nearly 27% in November, leading the charge among sectors expected to benefit from the broad economic revival promised by encouraging developments for several vaccines against COVID-19.
The longer term outlook for the sector, however, remains uncertain, as companies throughout the oil and gas supply chain face challenges from the increasing use of “green” energy sources such as wind and solar. Another concern is resistance among fund managers to investing in fossil fuel companies over environmental concerns.
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2. FTSE World Europe ex UK index in sterling terms 3. Share price using mid-market closing prices 4. Simple average NAV for the AIC Europe sector which comprises eight investment trusts 5. Investment Association Europe ex UK sector
CHAIR S STATEMENT These past twelve months have been unprecedented as we all know: the emergence of the Covid-19 pandemic; governments responses to the unfolding health, economic and social crisis and the ensuing impact on our daily lives. With this has come huge uncertainty - both for us as individuals but also for governments, and corporate management teams who are trying to operate and forecast in a highly unpredictable environment. Stock markets do not deal well with uncertainty and we have seen huge volatility during the financial year - to give you an idea, our benchmark index of Continental European companies, the FTSE World Europe ex UK Index, fell by 27.6% from the highest point (on