Global stocks rise, oil prices jump on OPEC news

Published: June 23, 2018 13:47:17 | Updated: June 26, 2018 11:07:50

File Photo (Collected)

World stocks rose on Friday amid the global trade tensions, oil prices surged after OPEC decided on a modest production increase.

US Treasury yields edged higher, trading in narrow ranges as risk appetite improved a bit but worries over a trade conflict with China kept investors cautious.

The euro rose as traders were encouraged by an improvement in regional growth data and assurance by Italian politicians that their nation would not leave the economic bloc.

The pan-European FTSEurofirst 300 index rose 1.18 per cent and MSCI’s gauge of stocks across the globe gained 0.65 per cent. But the global index registered its biggest weekly drop for three months.

On Wall Street, The Dow Jones Industrial Average rose 190.87 points, or 0.78 per cent, to 24,652.57, the S&P 500 gained 13.06 points, or 0.47 per cent, to 2,762.82.

However, the Nasdaq Composite dropped 5.23 points, or 0.07 per cent, to 7,707.73, reports Reuters.

The energy sector was the benchmark S&P 500 index’s biggest gainer with a 2.5 per cent increase while the technology sector was the weakest with a 0.2 per cent drop.

Oil prices rose sharply after OPEC agreed to only a modest increase in output to compensate for losses in production at a time of rising global demand.

US crude rose 4.76 per cent to $68.66 per barrel and Brent was last at $75.50, up 3.35 per cent on the day.

European carmakers’ shares fell sharply after US President Donald Trump threatened to impose a 20 per cent tariff on all European Union-assembled cars coming into the United States.

The euro rose after IHS Markit data showed business activity in Germany and France, the euro zone’s top two economies, picked up in June despite US-Europe trade tensions.

The dollar index, tracking it against six major currencies, fell 0.22 per cent, with the euro up 0.51 per cent to $1.166.

The Japanese yen strengthened 0.06 per cent versus the greenback at 109.92 per dollar.

Benchmark 10-year notes last fell 3/32 in price to yield 2.9059 per cent, from 2.897 per cent late on Thursday.

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