Major equity markets across the globe punctuated the month of November in a positive note, finishing impressively higher on Wednesday session, as oil prices returned to bullish trend after the world’s largest producers finalized the production cut.
Oil futures bounced back from a dismal performance on Tuesday and jumped more than 10% yesterday after the members of the Organization of the Petroleum Exporting Countries agreed to curb production from 1.2 million barrels per day to 32.5 million bpd starting January next year.
With the sharp gains in energy prices, the West Texas Intermediate and Brent crude futures settle to $49.44 and $50.47 per barrel respectively, which also pushed major stocks in the green territory.
Across Europe, the pan-European STOXX 600 added 0.4% as oil and gas stocks gained more than 3.5%. UK’s FTSE futures climbed 11.79 points, or 0.17% at 6783.79 while the Germany’s DAX advanced 19.81 points, or 0.19% at 10 640.30, buoyed by the agreement to cut production for the first time in eight years. France’s CAC was unchanged at 4578.34.
In Wall Street, the energy sector S&P 500 posted its best month since July as it finished the month 5% higher. The Dow Jones futures rose 100 points higher at 19225.29 while the NASDAQ Composite was little changed at 5323.68
In Asian markets, Japan’ Nikkei ended flat at 18308.48 while South Korea’s Kospi and Hong Kong’s Hang Seng index rallied 0.26% and 0.31% respectively.
The US dollar regained its strength against its major rivals and posted a record high anew on the news that members of the Organization of the Petroleum Exporting Countries have sealed the deal for a production cut.
The dollar was seen tumbling on Tuesday after the government showed upbeat data about the economy but it retreated on Wednesday as surge in oil prices steered US Treasury yields higher.
The dollar index, which gauges the performance of greenback against a basket of major currencies, rallied 0.9% and was last trading at 101.46.
Against the Japanese yen, the greenback logged to its 8 ½ month-peak after surging 1.7% to close at 114.43, the highest since early March of this year.The euro also lost ground, slipping 0.8% at 1.0554 while the Swiss franc touched its 10-month low against the dollar at 1.0204.