Crude oil futures rose on Thursday, adding to the previous session’s rally on optimism over an OPEC plan to curb output, while stocks fell as Deutsche Bank tumbled after a report said trading clients have withdrawn excess cash and positions held in the largest German lender.<\/p>\n
Energy stocks fared better than the rest of the market as oil prices rose. The Organization of the Petroleum Exporting Countries agreed to cut output to a range of 32.5 million – 33.0 million barrels a day from the group’s current estimate of 33.24 million barrels.<\/p>\n
But the mood elsewhere was sour as Deutsche Bank, despite saying it was confident clients know its financial position is stable, saw its U.S.-traded shares hit a record low of $11.185. The stock closed down 6.7 percent at $11.48 in record volume.<\/p>\n
The slide, alongside a grilling of Wells Fargo’s chief executive by U.S. lawmakers amid a call for the bank to be broken down due to a scandal over its opening of client accounts without agreement, weighed heavily on bank stocks.<\/p>\n
The S&P 500 bank index .SPXBK fell 1.6 percent and was on track to lose more than 5 percent this month. Wells Fargo (WFC.N<\/span>) fell 2.1 percent to $44.37.<\/p>\n “This Deutsche Bank story is really casting a very long shadow over equity markets,” said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York.<\/p>\n The immediate cause of Deutsche’s crisis is a fine of up to $14 billion from the U.S. Department of Justice for its sale of mortgage-backed securities.<\/p>\n “There is very little give in the system for a significant disruption and if investors move down that road where they once again become ‘risk-off,’ then the first line of fire is going to be these large money center banks,” said Kenny.<\/p>\n <\/p>\n He said the OPEC deal was preventing the equity market from a meltdown.<\/p>\n “The OPEC announcement certainly was well-received by the market and the long beleaguered energy sector has found some tailwind after so many quarters of disappointing earnings.”<\/p>\n The Dow Jones industrial average .DJI fell 195.79 points, or 1.07 percent, to 18,143.45, the S&P 500 .SPX lost 20.24 points, or 0.93 percent, to 2,151.13 and the Nasdaq Composite .IXIC dropped 49.39 points, or 0.93 percent, to 5,269.15.<\/p>\n The European oil and gas index .SXEP soared 4.4 percent on its best day in three months, but the pan-European STOXX 600 index closed flat. The pan-European FTSEurofirst 300 index .FTEU3 ended up 0.1 percent, while MSCI’s gauge of stocks across the globe .MIWD00000PUS fell 0.3 percent.<\/p>\n In Russia – a major oil producer – the dollar-denominated RTS share index .IRTS rose 2.3 percent.<\/p>\n Oil stocks and the weaker yen overnight also lifted Tokyo shares, which closed 1.4 percent higher .N225. Nikkei futures NKc1 fell 0.1 percent.<\/p>\n U.S. crude CLc1 was up 1.4 percent at $47.72 a barrel and Brent LCOc1 last traded at $49.07, up 0.8 percent on the day.<\/p>\n The safe-haven Japanese yen fell as much as 1.2 percent versus the U.S. dollar, but cut its losses by more than half as stocks sold off late in the U.S. session.<\/p>\n <\/p>\n It was last down 0.4 percent at 101.06 per dollar, having fallen as low as 101.84.<\/p>\n U.S. Treasury yields inched lower, with benchmark 10-year notes US10YT=RR up 2\/32 in price to yield 1.5616 percent, down from 1.567 percent on Wednesday.<\/p>\n However, U.S. yields remain trapped in tight ranges and could resume their recent downtrend given geopolitical tensions and political uncertainty, analysts said.<\/p>\n “I wouldn’t get caught up in the short-term moves in the Treasury market,” said Mike Materasso, co-chair of Franklin Templeton’s fixed income policy committee in New York. “The oscillations of five to 10 basis points are not that significant because if you look at the 10-year chart over the last three months, we’re still trading in a narrow range.”<\/p>\n Copper CMCU3 rose 0.5 percent to $4,841 per tonne. Spot gold XAU= was off 0.1 percent at $1,320.06 an ounce.<\/p>\n <\/p>\n Source: Reuters<\/p>\n","protected":false},"excerpt":{"rendered":" Crude oil futures rose on Thursday, adding to the previous session’s rally on optimism over…<\/p>\n","protected":false},"author":2,"featured_media":1668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[373],"tags":[],"class_list":["post-2554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"jetpack_publicize_connections":[],"yoast_head":"\n