By Rodrigo Campos
| NEW YORK
NEW YORK Oil prices jumped nearly 5 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), Microsoft (MSFT.O) and Amazon (AMZN.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 9.45 points, or 0.05 percent, to 18,859.24, the S&P 500 .SPX gained 9.58 points, or 0.44 percent, to 2,173.78 and the Nasdaq Composite .IXIC added 52.33 points, or 1 percent, to 5,270.72.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 0.4 percent.OIL JUMPS, GREENBACK PAUSES
Oil producers in the Organization of the Petroleum Exporting Countries are due 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.U.S. crude CLc1 was up 4.9 percent at $45.46 a barrel and Brent LCOc1 last traded at $46.50, up 4.7 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 0.7 percent to $5,522.50 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 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 0.18 percent against the dollar to $1.0715, having strengthened as far as $1.0816, while the yen JPY= weakened 0.7 percent to 109.14 per dollar.Benchmark 10-year notes US10YT=RR last slipped 4/32 in price to yield 2.2349 percent, up from 2.222 percent on Monday.Spot gold XAU= gained 0.3 percent to $1,223.10 an ounce. U.S. gold futures GCcv1 rose 0.1 percent to $1,223.10 an ounce. (Reporting by Rodrigo Campos; additional reporting by Tanya Agrawal and Anya George Tharakan in Bangalore and Devika Krishna Kumar and Richard Leong in New York; Editing by Nick Zieminski)
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First Published On : Nov 16, 2016 02:30 IST