Global stocks rise but oil slides on OPEC skepticism

Analysts said trading volume in the holiday-shortened session was light, allowing stocks to drift higher based on positive sentiment that has sparked several records

AFP, NEW YORK: Global stocks ended the week higher, with US indices all finishing at new records, while oil prices fell sharply amid continued skepticism about chances for a deal at next week’s OPEC meeting.
All three major US equity indices hit fresh records Friday, with the Dow closing at a new high for the fourth straight session.
Analysts said trading volume in the holiday-shortened session was light, allowing stocks to drift higher based on the positive sentiment that has sparked several records since Donald Trump’s election November 8.
“This is all about Trump and the new presidency,” said Hugh Johnson of Hugh Johnson Advisors.
“The strategists and economists have been trying to refine their forecasts based on the changes he represents. Most are raising their forecasts for the US economy in 2017 and 2018.”
London’s benchmark FTSE 100 index added 0.2 percent, as unrevised official data showed Britain’s economy grew by 0.5 per cent in the third quarter.
The update came two days after the UK government said Britain’s economy would grow far slower than expected next year as state borrowing jumps mainly as a result of a projected financial fallout from Brexit.
Frankfurt’s DAX 30 edged up 0.1 per cent and Paris added 0.2 percent.
OPEC doubts 
Brent oil prices fell 4.3 per cent to $46.90 a barrel ahead of next week’s meeting of the Organization of the Petroleum Exporting Countries in Vienna. The gathering is an attempt to codify a broad agreement struck in Algeria in September to cut production and protect prices.
Disagreements about how to share the burden of supply cuts have spilled into public view in recent days, with Iran insisting it be allowed to increase output to pre-sanctions levels and non-OPEC member Russia willing only to freeze, not reduce, production.
Those moves “may still represent positioning ahead of the November 30 OPEC summit,” said Citi Futures analyst Tim Evans. “But we think it does underscore how fragile the situation may be.”
CMC Markets chief market analyst Michael Hewson also expressed doubts. “There appears to be some skepticism setting in that we’ll see any meaningful deal come out of next week, with the positions of Iran and Russia likely to be particular sticking points,” he said.
The dollar lost a bit of steam Friday as many US investors took advantage of a long holiday weekend.
The dollar’s advance has come hand in hand with a rally across world markets since Trump’s election win, with dealers expecting his big spending, tax cutting plans will boost the world’s top economy.
However, there are some concerns inside emerging market governments about his campaign pledge to review global trade deals, which could lead to an era of protectionism and throw up huge US tariffs.

 

Global stocks rise but oil slides on OPEC skepticism

Analysts said trading volume in the holiday-shortened session was light, allowing stocks to drift higher based on positive sentiment that has sparked several records

AFP, NEW YORK: Global stocks ended the week higher, with US indices all finishing at new records, while oil prices fell sharply amid continued skepticism about chances for a deal at next weeks OPEC meeting. All three major US equity indices hit fresh records Friday, with the Dow closing at a new high for the fourth straight session. Analysts said trading volume in the holiday-shortened session was light, allowing stocks to drift higher based on the positive sentiment that has sparked several records since Donald Trumps election November 8. This is all about Trump and the new presidency, said Hugh Johnson of Hugh Johnson Advisors. The strategists and economists have been trying to refine their forecasts based on the changes he represents. Most are raising their forecasts for the US economy in 2017 and 2018. Londons benchmark FTSE 100 index added 0.2 percent, as unrevised official data showed Britains economy grew by 0.5 per cent in the third quarter. The update came two days after the UK government said Britains economy would grow far slowerthan expected next year as state borrowing jumps mainly as a result of a projected financial fallout from Brexit. Frankfurts DAX 30 edged up 0.1 per cent and Paris added 0.2 percent. OPEC doubts Brent oil prices fell 4.3 per cent to $46.90 a barrel ahead of next weeks meeting of the Organization of the Petroleum Exporting Countries in Vienna. The gathering is an attempt to codify a broad agreement struck in Algeria in September to cut production and protect prices. Disagreements about how to share the burden of supply cuts have spilled into public view in recent days, with Iran insisting it be allowed to increase output to pre-sanctions levels and non-OPEC member Russia willing only to freeze, not reduce, production. Those moves may still represent positioning ahead of the November 30 OPEC summit, said Citi Futures analyst Tim Evans. But we think it does underscore how fragile the situation may be. CMC Markets chief market analyst Michael Hewson also expressed doubts. There appears to be some skepticism setting in that well see any meaningful deal come out of next week, with the positions of Iran and Russia likely to be particular sticking points, he said. The dollar lost a bit of steam Friday as manyUS investors took advantage of a long holiday weekend. The dollars advance has come hand in hand with a rally across world markets since Trumps election win, with dealers expecting his big spending, tax cutting plans will boost the worlds top economy. However, there are some concerns inside emerging market governments about his campaign pledge to review global trade deals, which could lead to an era of protectionism and throw up huge US tariffs.