Global Stocks, US Futures And Yields, Rise As Oil Soars On OPEC Deal Optimism

European, Asian stocks rise as do S&P futures as OPEC ministers gathering in Vienna appeared to be set to announce a deal to cut oil production and prop up global prices. Oil has surged over 7% as a result, also pushing US TSY yields and the dollar higher.
With all eyes on Vienna, where optimism OPEC ministers will salvage a deal to cut production, oil has soared by over 6% reverberating through the financial markets, spurring oil’s biggest gain in two weeks and sending stocks of energy producers and currencies of commodity-exporting nations higher.
Crude bounced off a two-week low as Iranian Oil Minister Bijan Namdar Zangeneh said producers will reach an agreement without his country freezing production. Russia’s ruble, Norway’s krone and Mexico’s peso advanced as oil companies led European stocks higher for the second day. Royal Bank of Scotland Group Plc slipped 4 percent after failing the Bank of England’s toughest-ever stress test.
While some are skeptical, such as Stuart Samuels, a London-based sales trader at Oppenheimer Europe, who spoke to Bloomberg saying that ‘oil prices are driving today’s gains — anything other than a production cut and we’ll head south. Markets tracking the move in crude near-term is causing some volatility. I’d be inclined to take some profits,’ so far the algos are in charge forcing a furious squeeze.

This post was published at Zero Hedge on Nov 30, 2016.