By Rodrigo Campos
| NEW YORK
NEW YORK Oil prices jumped nearly 4 percent on Tuesday on bets OPEC members will agree to cut output while stocks edged higher, led by technology shares that had fallen recently.The U.S. dollar index .DXY held above the 100 level and touched a fresh 11-month high, and 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), Facebook (FB.O) and Alphabet (GOOGL.O).Bank stocks were the largest weight on Wall Street. They had been recent gainers on the expectation that the incoming Donald Trump administration would bring in less regulation and spark inflation through higher spending.Tech stocks had been sold off in favour of sectors with lower valuations on the expectation of a spike in economic growth."We're sort of poised for a little bit of a pullback here as people reassess what the new administration is likely to accomplish," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida."The uncertainty is going to hang over the markets for a while. So we may see a lot of this back and forth."
The Dow Jones industrial average .DJI fell 40.06 points, or 0.21 percent, to 18,828.63, the S&P 500 .SPX gained 7.21 points, or 0.33 percent, to 2,171.41 and the Nasdaq Composite .IXIC added 42.04 points, or 0.81 percent, to 5,260.44. The pan-European FTSEurofirst 300 index .FTEU3 gained 0.27 percent, while MSCI's gauge of stocks across the globe .MIWD00000PUS ticked up 0.3 percent.OIL JUMPS, GREENBACK PAUSES
Oil producers in the Organization of the Petroleum Exporting Countries are due to meet later this month to agree to limit output, and hopes on a deal boosted prices. An outline deal was reached in September but negotiations on the detail are proving difficult, officials say.U.S. crude CLc1 was up 4.3 percent at $45.16 a barrel and Brent LCOc1 last traded at $46.16, up 3.9 percent on the day."Clearly the market is now seeing increased chances of an OPEC production cut," Commerzbank 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 1.2 percent to $5,495.00 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.The 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.The euro EUR= edged down 0.05 percent to $1.0729, having strengthened as far as $1.0816 while the yen JPY= weakened 0.5 percent to 108.92 per dollar.Benchmark 10-year notes US10YT=RR last rose -2/32 in price to yield 2.2295 percent, down from 2.222 percent on Monday.Spot gold XAU= gained 0.4 percent to $1,224.46 an ounce. U.S. gold futures GCcv1 rose 0.2 percent to $1,224.20 an ounce. (Reporting by Rodrigo Campos; additional reporting by Tanya Agrawal and Anya George Tharakan in Bangalore and Devika Krishna Kumar in New York)
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Published Date: Nov 16, 2016 01:45 AM | Updated Date: Nov 16, 2016 01:45 AM