Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

GLOBAL MARKETS-Oil rallies on OPEC deal bets; tech, energy boost stocks

Published 2016-11-15, 05:23 p/m
© Reuters.  GLOBAL MARKETS-Oil rallies on OPEC deal bets; tech, energy boost stocks
EUR/USD
-
USD/JPY
-
XAU/USD
-
US500
-
DJI
-
MSFT
-
CBKG
-
AAPL
-
AMZN
-
DX
-
GC
-
HG
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
FTEU3
-
MSCIEF
-
MIWD00000PUS
-
DXY
-

* Treasuries prices little changed, yields near recent highs

* U.S. dollar holds recent gains, index hovers near 100

* Oil gains near 6 percent, copper falls (Updates to U.S. market close)

By Rodrigo Campos

NEW YORK, Nov 15 (Reuters) - Oil prices jumped nearly 6 percent on Tuesday on bets OPEC members will agree to cut output when they meet later this month, while stocks rose, led by recently lagging technology shares.

Crude oil gains in post-settlement trade gave an extra boost to energy-sector shares, further lifting stock indexes on Wall Street.

The U.S. dollar index .DXY held above the 100 level and touched a fresh 11-month high, while Treasuries prices were little changed with yields near multi-month highs.

The S&P 500 rose, led by recent decliners, including Apple AAPL.O , Microsoft MSFT.O and Amazon AMZN.O . Tech stocks had sold off in favor of cyclical sectors with lower valuations on the expectation of a spike in spending under the incoming Donald Trump administration.

"Buyers who were waiting to buy technology stocks didn't have an option but to get involved and continue buying the strength. That's propelled them higher as the day went on," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

The energy sector on the S&P posted its largest daily gain since late September as the rally in crude futures accelerated.

The Dow Jones industrial average .DJI rose 54.37 points, or 0.29 percent, to 18,923.06, the S&P 500 .SPX gained 16.19 points, or 0.75 percent, to 2,180.39 and the Nasdaq Composite .IXIC added 57.23 points, or 1.1 percent, to 5,275.62. market stocks .MSCIEF rose 0.3 percent after having fallen 7 percent over the previous four sessions.

The pan-European FTSEurofirst 300 index .FTEU3 ended up 0.31 percent, while MSCI's gauge of stocks across the globe .MIWD00000PUS rose 0.5 percent.

OIL JUMPS, GREENBACK PAUSES

Oil producers in the Organization of the Petroleum Exporting Countries are to meet on Nov. 30 and discuss output limits, and hopes for a deal to cut production boosted prices. An outline deal was reached in September but negotiations on the details are proving difficult, officials say. crude CLc1 was up 5.6 percent at $45.75 a barrel and Brent LCOc1 last traded at $46.94, up 5.7 percent on the day.

Commerzbank (DE:CBKG) analysts said in a note that the market was seeing increased chances of an OPEC production cut.

"There were a lot of new speculative shorts in the market because of the growing skepticism that they would be able to clinch a deal," said Andrew Lebow, senior partner at Commodity Research Group in Darien, Connecticut. But he noted that those shorts got squeezed as a deal seemed more likely.

Copper CMCU3 , which rallied nearly 20 percent over the three weeks to Friday, fell 0.6 percent to $5,525.00 a tonne.

The dollar index was in and out of negative territory for much of the day but remained near the 100 level and touched its highest since December. greenback had support from data showing U.S. retail sales rose more than expected in October, pointing to sustained economic strength that could allow the Federal Reserve to raise interest rates next month. dollar's recent rally was in step with the surge in U.S. yields as Trump's victory a week ago led traders to pile on bets that he and a Republican-controlled Congress would embark on tax cuts and federal spending to boost the economy.

However, they could be offset by possible restrictions on immigration and trade, which could hurt business activity, analysts say.

"We don't know whether and in what form Trump will follow through on what he campaigned on," said James Chen, head of research at Gain Capital in Bedminster, New Jersey.

The euro EUR= edged down 0.13 percent against the dollar to $1.072, having strengthened as far as $1.0816, while the yen JPY= weakened 0.68 percent to 109.15 per dollar.

Benchmark 10-year notes US10YT=RR slipped 2/32 in price to yield 2.2295 percent, up from 2.222 percent on Monday.

Spot gold XAU= gained 0.6 percent to $1,227.76 an ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.