Surprise Opec output decision spurs producer shares and risk appetite
LONDON — Agreement by Opec members to curb output boosted oil company shares on Thursday, lifted currencies of crude-producing countries and drove yields on low-risk government debt higher.Global stocks were pushed higher by the rally in oil company shares, despite scepticism about how the curb would be implemented.Oil prices edged off highs on profit-taking after Wednesday’s more than 5% surge, prompted by Opec’s first deal to limit output since 2008.But the surprise agreement boosted investors’ appetite for riskier assets and saw the safe-haven yen fall 1% against the dollar at one point.Opec ministers meeting in Algiers agreed to cut output to a range of 32.5-33.0-million barrels a day from its current estimate of 33.24-million.Members’ output levels will be decided at the formal Opec meeting in Vienna in November, when non-Opec countries such as Russia may be invited to join the cuts.BMO Capital Markets currency strategist Stephen Gallo said: "Everything you’re seeing today is a...
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