{"id":96135,"date":"2016-09-29T07:26:51","date_gmt":"2016-09-29T11:26:51","guid":{"rendered":"http:\/\/countingpips.com\/?p=96135"},"modified":"2016-09-29T07:26:51","modified_gmt":"2016-09-29T11:26:51","slug":"markets-rise-as-opec-agrees-to-limit-output","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/09\/markets-rise-as-opec-agrees-to-limit-output\/","title":{"rendered":"Markets rise as OPEC agrees to limit output"},"content":{"rendered":"
September 29, 2016<\/div>
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By IFCMarkets<\/a><\/p>\n

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US stocks follow oil higher<\/h2>\n<\/div>\n<\/div>\n

US stocks <\/b>advanced on Wednesday as investor confidence was buoyed by jump in oil prices on reports of an OPEC agreement to limit crude output. The dollar ended little changed: the live dollar index<\/a> data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six major currencies, slipped 0.02% to 95.402.<\/p>\n

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The Dow Jones industrial average gained 0.6% to 18339.24 with the shares of ExxonMobil and Caterpillar, up more than 4%, leading the blue chip index higher. The S&P 500<\/a> rose 0.5% settling at 2171.37 led by 4.3% jump in energy stocks. The Nasdaq added 0.3% closing at a record high 5318.55. The rally in energy stocks boosted investor risk appetite together with better than expected durable goods report: orders for durable goods came in flat in August instead of an expected drop. However, no growth in durable orders after 3.9% gain in July indicates slowing of investment, pointing to slowing economic growth expectations. Soft recent economic data support expectations of low interest rate environment. The Federal Reserve held off on raising rates at its September meeting, signaling it will act at its December meeting. Chicago Fed President Charles Evans said yesterday that the US was likely to be in a low-rate environment \u201cfor some time.\u201d Fed Chairwoman Janet Yellen also testified yesterday before the Committee on Financial Services, saying that regulators needed to do more to alleviate the regulatory burden on small lenders. Today at 14:30 CET second quarter final GDP will be published. At the same time August advance Goods Trade Balance, and Initial Jobless Claims and Continuing Claims will be released, the tentative outlook is negative for dollar. At 16:00 CET August Pending Home Sales will be published. The tentative outlook is negative. And at 16:30 CET Natural Gas Storage Change will be released by the Energy Information Agency.<\/p>\n

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Bank and energy stocks lift European marketsdebates<\/h2>\n<\/div>\n<\/div>\n

European stocks <\/b>rose on Wednesday lifted by bank stocks as Deutsche Bank rebounded and higher energy stocks ahead of OPEC meeting in Algeria. The euro and Pound edged lower against the dollar.<\/p>\n

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The Stoxx Europe 600 gained 0.7%. Deutsche Bank shares ended 2% higher pairing earlier gains of 4% after a report German government is working on a rescue plan for the bank. Despite a dismissal of the report later by Germany\u2019s finance ministry as \u201cfalse\u201d, shares of the biggest embattled German bank closed higher partly also due the news the bank reached a deal to sell its Abbey Life insurance business to Phoenix Group for \u20ac1.09 billion ($1.23 billion). The recovery in Deutsche spurred gins in the financial sector: shares of Banco Santander and Commerzbank rose 1.3%, BNP Paribas added 1%. Germany\u2019s DAX 30 <\/a>index rose 0.7% to 10438.34, France\u2019s CAC 40 gained 0.8% and UK\u2019s FTSE 100 added 0.6% to 6849.38. In economic news European Central Bank President Mario Draghi said the euro area needs \u201cmore robust policy prescriptions\u201d to promote growth. Stocks continue rising today. The German labor market report indicated September Unemployment Rate remained unchanged at 6.1% while the number of unemployed rose by 1000. Data showed also September business and economic confidence indexes rose while the consumer confidence index remained unchanged in euro-zone. And at 14:00 CET September preliminary consumer price index will be released in Germany, the tentative outlook is neutral for euro.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Asian stocks advance on Thursday<\/h2>\n<\/div>\n<\/div>\n

Asian stocks<\/b> are rising today led by energy shares as oil prices jumped on Wednesday. Hong Kong\u2019s Hang Seng Index is 0.5% higher. Nikkei ended 1.4% up today with yen weakened against the dollar. Australia\u2019s All Ordinaries Index gained 1% as Australian dollar slipped against the dollar.<\/p>\n

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OPEC agrees to cut output<\/h2>\n<\/div>\n<\/div>\n

Oil futures<\/b> prices are pulling back today following a jump on Wednesday on news the Organization of the Petroleum Exporting Countries agreed to cut output to 32.5-33.0 million barrels per day (bpd) from around 33.5 million bpd. Another positive development for crude was the US Energy Information Administration report early Wednesday that domestic crude supplies fell unexpectedly by 1.9 million barrels last week. This was a fourth weekly drop in a row. November Brent crude rose 5.9% to $48.69 a barrel on London\u2019s ICE Futures exchange on Wednesday.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>\n

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<\/div>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets US stocks follow oil higher US stocks advanced on Wednesday as investor confidence was buoyed by jump in oil prices on reports of an OPEC agreement to limit crude output. The dollar ended little changed: the live dollar index data show the ICE US Dollar index, a measure of the dollar\u2019s strength against […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-96135","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/96135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=96135"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/96135\/revisions"}],"predecessor-version":[{"id":96141,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/96135\/revisions\/96141"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=96135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=96135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=96135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}