TOKYO – Global shares rose Tuesday, tracking the overnight rally on Wall Street, as oil prices pushed higher amid hopes the Organization of the Petroleum Exporting Countries will agree on production cuts.
KEEPING SCORE: France’s CAC 40 added 0.8 per cent to 4,566.17 in early trading, while Germany DAX was up 0.7 per cent at 10,755.64. Britain’s FTSE 100 was nearly flat at 6,777.96. U.S. shares were also set to drift higher, with Dow futures adding 0.4 per cent to 18,981. S&P 500 futures were also up 0.4 per cent at 2,201.10.
OPEC LOOMING: Expectations are growing that oil ministers will agree to limit production at a meeting of the OPEC oil cartel on Nov. 30 in Vienna, Austria. That’s helped buoy oil prices in markets. Benchmark U.S. crude rose 10 cents to $48.34 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.88 to $48.24 a barrel on Monday. Brent crude, the international standard, rose 24 cents to $49.14.
ANALYST TAKE: “Investors are trying to strike the right balance between positioning for a major dose of U.S. fiscal stimulus and not getting too committed, given the uncertainty surrounding what policies the new Trump Administration will actually implement,” Margaret Yang, a market analyst at CMC Markets, said in a commentary.
RENMINBI RETREAT: Chinese authorities set the yuan’s official “parity rate,” known as the fix, for the country’s tightly controlled currency at 6.8779 on Tuesday, breaking a 12-day losing streak. The yuan, also known as the renminbi, has been weakening as the dollar has surged in value against other currencies.
ASIA’S DAY: Japan’s Nikkei 225 stock index added 0.3 per cent to finish at 18,162.94 after dipping briefly following a powerful earthquake in northern Japan that set off a small tsunami but caused minor damage and injuries. South Korea’s Kospi rose 0.9 per cent to 1,983.47 and the Hang Seng in Hong Kong gained 1.4 per cent to 22,678.07. Australia’s S&P ASX/200 added 1.2 per cent to 5,413.30 and the Shanghai Composite Index climbed 0.9 per cent to 3,248.35. Shares in Southeast Asia and Taiwan also gained.
CURRENCIES: The dollar rose to 110.80 yen from 110.43 yen on Monday. The euro edged up to $1.0640 from $1.0638.