Oil steadies after Kuwait strike; stocks gain | Reuters - Firstpost
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Oil steadies after Kuwait strike; stocks gain | Reuters

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NEW YORK Oil prices steadied on Monday as a strike in Kuwait offset concern over producers' failure to agree on a plan to curb global supply at a meeting in Qatar, while world stock markets rose.

Gains in energy and consumer shares helped to lift Wall Street. Walt Disney rose 2.5 percent to $101.09 a share after its "Jungle Book" film dominated the weekend box office. The S&P energy index was up 1.4 percent.

The strike in Kuwait slashed the country's oil output by more than half. Weighing on oil prices earlier was the failure in Doha of some 18 oil-exporting nations, including OPEC members, to agree to stabilize output at January levels until October 2016. A pact fell apart after Saudi Arabia demanded that Iran join in.

Brent crude was up 20 cents, or 0.4 percent, at $43.30 a barrel after falling $3 earlier in the session, while U.S. crude was off 31 cents, or 0.8 percent, at $40.05 a barrel.

Concerns over the possible economic impact of falling oil prices, weak growth in China and disappointing corporate results have dogged investors for much of this year.

"I think it was widely anticipated that a deal was unlikely over the weekend and the market has digested that news this morning," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis.

The Dow Jones industrial average was up 82.15 points, or 0.46 percent, to 17,979.61, the S&P 500 had gained 9.31 points, or 0.45 percent, to 2,090.04 and the Nasdaq Composite had added 11.42 points, or 0.23 percent, to 4,949.63.

MSCI's all-country world stock index was up 0.1 percent, while Europe's pan-regional FTSEurofirst 300 index closed 0.4 percent higher.

Brazil's Bovespa index was down 0.3 percent as a vote to impeach President Dilma Rousseff looked set to force her from office after 13 years of leftist Workers' Party rule.

In Japan, the Nikkei tumbled more than 3 percent after a devastating earthquake on Saturday in the southwest of the country, with shares of Sony Corp, which has a plant in the Kumamoto area at the center of the quake, falling almost 7 percent. U.S.-listed shares of Sony fell 0.7 percent.

The U.S. dollar edged higher against the yen as commodity currencies pared losses.

The dollar was last up 0.1 percent against the yen at 108.81 yen after slumping to a session low of 107.81 yen, near the 17-month low of 107.61 that the yen touched a week ago.

U.S. Treasury yields rose slightly despite falling oil prices amid a dearth of major economic releases this week. Investors were focusing on the U.S. Federal Reserve's policy meeting next week.

Benchmark 10-year notes were last down 8/32 in price to yield 1.78 percent, up from 1.75 percent on Friday.

(Additional reporting by Abhiram Nandakumar in Bengaluru, Patrick Graham in London; Danilo Masoni in Milan, Joshua Hunt in Tokyo; Editing by Bernadette Baum and Paul Simao)

This story has not been edited by Firstpost staff and is generated by auto-feed.

First Published On : Apr 19, 2016 01:00 IST

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