Oil rally propels Wall Street to record

Mon Nov 21, 2016 4:21pm EST
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By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stocks climbed on Monday to close at a record and European equity markets also moved higher as a jump in oil prices helped spur gains in the energy sector.

Brent LCOc1 settled up 4.4 percent at $48.90 and U.S. crude CLc1 settled 3.9 percent higher at $47.49 after touching their highest levels in about three weeks as the dollar weakened. Comments by Russian President Vladimir Putin that raised expectations major oil producing countries could reach a deal to limit output at a meeting next week also spurred the jump in oil prices.

Among U.S. equities, the S&P energy index .SPNY gained 2.2 percent as the top-performing sector, closing at its highest level in 16 months.

"The post-election rally is continuing," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. "There was some concern that rates might rise too far, but it looks like they may have slowed down a little bit."

The Dow Jones industrial average .DJI rose 88.76 points, or 0.47 percent, to 18,956.69, the S&P 500 .SPX gained 16.28 points, or 0.75 percent, to 2,198.18 and the Nasdaq Composite .IXIC added 47.35 points, or 0.89 percent, to 5,368.86.

The levels marked a record close for each of the three major Wall Street indexes, but market participants cautioned that volume was likely to be light this week ahead of the U.S. Thanksgiving Day holiday on Thursday.

The climb in oil lifted European markets, with the STOXX Europe oil & gas index up 2.1 percent. Europe's index of leading 300 shares .FTEU3 closed up 0.3 percent. MSCI's all-country world index .MIWD00000PUS advanced 0.8 percent.

The dollar .DXY eased 0.3 percent to 100.89 against a basket of major currencies, pausing after a 10-day streak in which it gained nearly 5 percent. That rally was fueled by expectations of policies by U.S. President-elect Donald Trump that would lead to interest rate increases.   Continued...

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. November 18, 2016. REUTERS/Brendan McDermid