NEW YORK: US and European markets moved higher on Wednesday as oil producing countries reached a surprise deal to cut oil production, causing crude prices to jump more than five percent.
Following the agreement reached in Algiers by members of the Organization of the Petroleum Exporting Countries, oil stocks moved higher in New York, bringing the rest of the market up with them.
The benchmark Dow Jones Industrial Average finished up 0.6 percent while the broader S&P 500 gained 0.5 percent and the tech-heavy Nasdaq Composite gained 0.2 percent.
Oil producers saw strong gains on hopes that tighter global supplies could put an end to two years of moribund crude prices: Exxon Mobil rose 4.7 percent, Chevron gained 3.3 percent and ConocoPhillips ended up 7.7 percent higher.
Earlier in the trading day, European stocks also rebounded, brushing aside a broad retreat across Asia, as oil prices pushed higher and Deutsche Bank shares rose, recouping some of their previous days’ losses.
London’s benchmark FTSE 100 index increased by 0.6 percent. In the eurozone, Frankfurt’s DAX 30 was up 0.7 percent at the close the Paris CAC 40 gained 0.8 percent on the day.
