Stocks firm, oil sags on doubts over supply deal | Reuters - Firstpost
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Stocks firm, oil sags on doubts over supply deal | Reuters


By Richard Leong
| NEW YORK

NEW YORK Stock prices around the world edged up on Tuesday following upbeat U.S. growth data, while the oil market fell to its weakest level in over a week on doubts OPEC could reach an accord to reduce output.The dollar slipped against a basket of currencies on profit-taking. The dollar index had hit a near 14-year peak last week on expectations a Trump administration would result in tax cuts and a surge in federal spending to bolster the U.S. economy."Optimism surrounding potential fiscal stimulus and some targeted deregulation next year have lifted U.S. equity prices in recent weeks," said Jim Baird, chief investment officer at Plante Moran Financial Advisors. "Couple that with an increasingly enthusiastic consumer supported by stronger wage gains and the economy appears well-positioned to remain on a growth path heading into 2017."Concerns about rising government borrowing to finance those fiscal stimuli, together with upbeat U.S. economic data, renewed selling in U.S. Treasuries and other core government bonds.Gold prices fell on growing expectations on stronger global growth led by the U.S. and the Federal Reserve raising interest rates in response.The Dow Jones industrial average was up 15.62 points, or 0.08 percent, to 19,113.52, the S&P 500 was 4.14 points, or 0.19 percent, higher at 2,205.86 and the Nasdaq Composite was up 19.79 points, or 0.37 percent, to 5,388.60.The outlook for U.S. stocks improved after data showed the U.S. economy grew 3.2 percent in the third quarter, faster than initially thought due to strong consumer spending and a surge in soybean exports.

European equities edged higher with Italian bank stocks gaining 3.7 percent after Monte dei Paschi's rescue plan got off to an encouraging start. Generali's board approved a conversion of 400-million euros in Monte dei Paschi subordinated bonds into shares, according to Italian press reports. Europe's broad FTSEurofirst 300 index inched up 0.08 percent, at 1,341.15. The MSCI world equity index, which tracks shares in 45 nations, fell 0.1 points or 0.02 percent, to 413.54.In addition to its bank sector, Italy was also in focus ahead of a constitutional referendum on Sunday.

Italian 10-year government yields fell below 2 percent after Reuters reported that the European Central Bank is ready to by more Italian bonds if there is turmoil after the constitutional referendum on Sunday. The political risk kept the euro restrained despite thepullback in the dollar. The single currency was last up 0.03 percent, at $1.0616. The dollar index slipped 0.1 percent on profit-taking but remained 2.8 percent higher for the month.

The greenback's decline was mitigated by higher U.S. yields stemming from jitters about higher domestic inflation if Trump and a Republican-controlled Congress enact tax cuts and federal spending in the coming months.Benchmark 10-year Treasury yield was up 2 basis points to 2.34 percent.Meanwhile, oil prices fell more than 3.5 percent as key OPEC members seemed to struggle with arriving to an production cut agreement to address a global supply overhang.Brent crude was last down $1.72, or down 3.57 percent, at $46.52 a barrel. U.S. crude was last down $1.74, or down 3.7 percent, at $45.34 per barrel.Spot gold prices fell $5.77 or 0.48 percent, to $1,187.61 an ounce. (Additional reporting by Tanya Agrawal, Anya George Tharakan in Bengaluru, Abhinav Ramnarayan in London, Wayne Cole in Sydney; Editing by Jeremy Gaunt and Nick Zieminski)

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

First Published On : Nov 29, 2016 22:30 IST

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