Monday November 28th

28-11-2016

US stocks poised to open lower; oil gyrates as OPEC deal eyed

U.S. stock index futures pointed to a lower open on Monday as investors assessed the possibility of OPEC agreeing to a production cut this week. Brent crude traded at around $47.61 a barrel on Monday, up 0.78 percent, while U.S. crude was around $46.44 a barrel, up 0.8 percent, after Dow Jones reported the Iraqi oil minister said Iraq will cooperate with other OPEC members to reach a deal. OPEC members are holding bilateral meetings as they try to reach an agreement at a general meeting on Wednesday. Oil prices had traded lower earlier on Monday after Libya's National Oil Corporation (NOC) said on Sunday it would not take part in any OPEC production cuts for the "foreseeable future", according to Reuters, and the Saudi Arabian Energy Minister Khalid al-Falih also said that he believed the oil market would balance itself next year even if producers did not intervene. On the earnings front Monday, ZTO Express is due to report after the bell in its first report since its initial public offering (IPO). Shoe Carnival, 21Vianet and Thor Industries are also set to report earnings after the market close. On the data front, Monday will see Dallas Fed survey data released at 10:30 a.m. ET. In Europe, the pan-European Stoxx 600 index was around 0.48 percent lower on Monday. Investors in Europe are also becoming increasingly worried over the upcoming referendum in Italy that could potentially lead to the fall of the government and raise concerns over the recapitalization of the banking system. In Asia, the Shanghai Composite in China closed 0.46 percent higher, while the Nikkei in Japan closed 0.13 percent lower. Gold prices rose more than 1 percent on Monday, recovering from their lowest levels since February as the dollar and long-dated U.S. Treasury bond yields retreated from recent highs. Spot gold had gained 0.46 percent to $1,188.26 an ounce by 8:04 a.m. EDT after climbing as high as $1,197.54 earlier in the session.