Wall Street rises, euro down ahead of ECB meeting

Tue Dec 6, 2016 4:31pm EST
 
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By Sinead Carew

NEW YORK (Reuters) - Oil futures snapped a four-day rally on Tuesday on signs of higher output while the euro slipped from a three-week high ahead of a Thursday meeting of the European Central Bank.

Wall Street was boosted by financial and telecom stocks while U.S. Treasury yields held in narrow ranges ahead of the ECB meeting. Italian banks rebounded.

The euro fell 0.4 percent to $1.072 after rising sharply in the previous session as currency investors focused on the possibility the ECB may take a hawkish turn, even as it is widely expected to extend bond purchases.

The S&P 500 index closed higher helped by continued strength in financials and telecommunications stocks. The S&P energy sector ended down slightly.

Oil prices fell sharply after data showed crude output rose in virtually every major export region and on news that Saudi Aramco had cut prices to big Asian customers.

The data followed last week's first OPEC output cut agreement since 2008 and sent Brent oil futures down 2.3 percent, to $53.66 a barrel after settling at $53.93. It had risen rising 18.5 percent in the previous four sessions. U.S. West Texas Intermediate crude futures fell $1.03, or 2 percent, to $50.69 after settling at $50.93. WTI had risen 14.5 percent in the last 4 days. [O/R]

"OPEC's probably taken the price up as much as it can. Now markets will look back to fundamentals - supply and weekly inventory reports," said John Augustine, chief investment officer at Huntington National Bank in Columbus, Ohio.

The Dow Jones industrial average rose 35.54 points, or 0.18 percent, to 19,251.78, the S&P 500 gained 7.52 points, or 0.34 percent, to 2,212.23 and the Nasdaq Composite added 24.11 points, or 0.45 percent, to 5,333.00.   Continued...

 
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, December 5, 2016.      REUTERS/Staff/Remote