A pedestrian holding an umbrella crosses a road in front of an electronic stock board displaying the closing figure of the Nikkei 225 Stock Average outside a securities firm in Tokyo, Japan. (Photographer: Kiyoshi Ota/Bloomberg)

Energy Stocks Lift U.S. Gauges as OPEC Buoys Crude: Markets Wrap

(Bloomberg) -- U.S. stocks climbed following gains in Europe as OPEC’s plans to boost output less than some investors had anticipated sent oil on a tear. Energy shares surged.

The S&P 500 Index rose the most in a week even after Donald Trump revived concerns about a global trade war with a tweet threatening to impose 20 percent tariffs on cars imported from the European Union. Treasuries steadied and the dollar slumped, while a gauge of emerging-market currencies climbed from its lowest level since November.

Stories impacting today’s markets:
  • OPEC+ Will Boost Oil Output After Saudis Secure a Deal With Iran
  • Trump Escalates Trade War With Tariff Threat for European Autos
  • Euro-Area Economy Sees Silver Lining as Growth Momentum Picks Up
  • Tech IPOs Sink Again as Market’s Seesaw Stifles Momentum Trade

The benchmark U.S. gauge posted its first weekly loss in more than a month as traders contended with an escalation of trade tensions between the U.S. and China, just as the Federal Reserve signals a faster pace of policy tightening. Positive economic news from Europe provided a counterbalance Friday as a measure of private-sector activity unexpectedly picked up in June, underpinning the European Central Bank’s prediction that a rebound is in the cards.

West Texas oil surged the most since November 2016, climbing above $69 as OPEC and allies including Russia agreed to boost oil production starting next month, overcoming Iran’s threats to veto any supply hike.

“With OPEC, the rumors started yesterday afternoon that this was what they would do,” Joe “JJ” Kinahan, the chief market strategist at TD Ameritrade, said by phone. “When you think about this in terms of the total production, it’s just not that big an increase, so it should be able to support it without a problem.”

Elsewhere, developing-nation stocks advanced. Greece’s creditors struck a landmark deal to ease repayment terms on some of the nation’s loans. Greek bonds jumped, while Italian debt also gained after Thursday’s plunge.

Energy Stocks Lift U.S. Gauges as OPEC Buoys Crude: Markets Wrap

Terminal users can read more in Bloomberg’s Markets Live blog.

Here’s the main market moves.

Stocks

  • The S&P 500 Index rose 0.2 percent at the close of trading in New York, leaving it down 0.9 percent for the week.
  • The Stoxx Europe 600 Index rose 1.1 percent.
  • The U.K.’s FTSE 100 Index surged 1.7 percent.
  • Japan’s Nikkei 225 Stock Average fell 0.8 percent.
  • Hong Kong’s Hang Seng Index rose 0.1 percent.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.3 percent.
  • The euro increased 0.5 percent to $1.166.
  • The British pound rose 0.2 percent to $1.3261.
  • The Japanese yen was little changed at 109.99 per dollar.

Bonds

  • The yield on 10-year Treasuries was little changed at 2.9 percent.
  • Germany’s 10-year yield was little changed at 0.33 percent.
  • Britain’s 10-year yield jumped four basis points to 1.32 percent.

Commodities

  • West Texas Intermediate crude surged 5.7 percent to $69.24 a barrel.
  • Gold rose 0.2 percent to $1,270.28 an ounce.

©2018 Bloomberg L.P.