World Stock Markets Lifted As OPEC Says It Will Reduce Its Crude Oil Production
London (Sept 29) Global equities markets were mostly higher early Thursday, boosted in part by a rally in crude oil prices. Oil rallied sharply following the surprise news Wednesday afternoon that the OPEC oil cartel, at its meeting in Algiers, reached a preliminary agreement to reduce its collective oil production by a bit less than 1 million barrels a day. The deal will be finalized at OPEC's November meeting. Most energy market watchers did not believe OPEC would make any significant moves to reduce their crude oil output at this meeting.
Nymex crude oil futures prices initially spiked about $2.00 higher Wednesday afternoon on the news. Oil prices Thursday had backed off a bit, as some in the energy industry are still skeptical a final agreement will be reached in November, saying that Iran and Saudi Arabia will not work together to cut oil output. World stock markets have been extra-sensitive to crude oil's daily price movements recently.
U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.
European financial stocks were lifted Thursday on a rebound in Germany's Deutsche Bank's shares, which had been under strong selling pressure recently. Still, there are deep concerns about the big German bank, including notions the European Union will have to bail it out to keep it from failing.
Bank of Japan Governor Kuroda gave a speech earlier Thursday and reiterated the BOJ can employ more stimulatory monetary policy measures if the Japanese economy remains moribund.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the advance economic indicators report, the gross domestic product report for the second quarter, and pending home sales.