Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices were trading higher, reflecting the agreement reached at the last minute by OPEC and Russia. This understanding should boost the stock market indices and, more specifically, the oil sector. Despite this impulse of oil it will be the banking behavior to condition the European markets. Until now the situation of the Deutsche Bank has not affected, significantly, the perception of risk that investors have from the Italian and Spanish counterparts.
American indices closed higher. After a modest rise early in the session, US markets were driven by the agreement of OPEC and Russia. According to Reuters, OPEC and Russia have agreed to reduce daily production to range between 32.5 million and 33 million barrels. Currently, the production of these countries is 33.2 million barrels. This agreement or draft of agreement will have to be formalized either on the next OPEC meeting (30 November) or through the convening of a special meeting. The news of this understanding has generated a strong momentum in the energy markets, leading oil prices valuations close to 6%. As the price of oil is rising, American shale oil is once again profitable, increasing the supply of crude oil. The agreement of OPEC and Russia relegated to the background the intervention Janet Yellen in the House of Representatives. Before the financial committee of this institution, the Chairman of the Fed has taken a balanced and prudent approach. Janet Yellen said that there is no timetable for increases in interest rates despite several members of the Fed believe are necessary interest rate increases. So, in absence of any new risks and if economic conditions will remain it will be appropriate an increase interest rates. Additionally, Yellen said that the Fed is considering the imposition of higher capital ratios for the major banks.
Asian markets closed higher, due to the rising price of oil in New-York, which inspired a rally in risk assets in Asia. Australian and Japanese equities were the most appreciated. The first due to the weight of mining operations and the latter by virtue of its underperformance in previous sessions.