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GLOBAL MARKETS-Oil rallies on output cut bets; tech, energy lead stocks up

Published 2016-11-15, 03:36 p/m
© Reuters.  GLOBAL MARKETS-Oil rallies on output cut bets; tech, energy lead stocks up
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* Treasuries prices dip as stocks rise; energy shares jump

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

* Oil gains near 6 percent, copper falls (Updates prices, changes comment)

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, while stocks edged higher, led by technology shares that had fallen recently.

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

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

The S&P 500 traded higher, led by recent decliners, including Apple AAPL.O , Microsoft MSFT.O and Amazon AMZN.O . Tech stocks had been sold off in favor of sectors with lower valuations on the expectation of a spike in economic growth.

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

"Last week's rally was basically a digestion of (Donald) Trump's win and now that we're past the digestion phase, the market is taking a bit of a breather and is waiting to see what lies ahead under a Republican government," said Mark Watkins, regional investment manager at the Private Client Group at U.S. Bank in Park City, Utah. He noted that the upward move in oil also was giving stocks support.

The Dow Jones industrial average .DJI rose 30.03 points, or 0.16 percent, to 18,898.72, the S&P 500 .SPX gained 14.43 points, or 0.67 percent, to 2,178.63 and the Nasdaq Composite .IXIC added 62.52 points, or 1.2 percent, to 5,280.91.

The S&P 500 energy sector .SPNY gained 2.5 percent.

Emerging market stocks .MSCIEF rose 0.4 percent after falling 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 ticked up 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 boosted prices. An outline deal was reached in September but negotiations on the details are proving difficult, officials say. crude CLc1 was up 5.9 percent at $45.86 a barrel and Brent LCOc1 last traded at $47.06, up 5.9 percent on the day.

U.S. crude traded above its 14-day moving average for the first time in three weeks.

"Clearly the market is now seeing increased chances of an OPEC production cut," Commerzbank (DE:CBKG) analysts said in a note. "There is doubtless considerable pressure to take action, as the oversupply will not reduce itself."

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 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 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 0.10 percent against the dollar to $1.0723, having strengthened as far as $1.0816, while the yen JPY= weakened 0.8 percent to 109.22 per dollar.

Benchmark 10-year notes US10YT=RR last slipped 3/32 in price to yield 2.2331 percent, up from 2.222 percent on Monday.

Spot gold XAU= gained 0.4 percent to $1,225.14 an ounce. U.S. gold futures GCcv1 rose 0.3 percent to $1,224.90 an ounce.

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