Overseas Trading: OPEC Deal Sparks Global Stock Rally

Stocks in Asia and Europe are responding favorably to OPEC's oil production agreement

by Josh Selway

Published on Sep 29, 2016 at 8:54 AM
Updated on Jun 24, 2020 at 10:16 AM

An agreement among the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers to cut back production is lifting stocks around the globe. As oil prices surged on the news, energy stocks throughout Asia rallied -- especially in Japan, where the Nikkei closed with a 1.4% gain. A cooling yen also added to the bulls' case, boosting exporters and overshadowing a larger-than-expected drop in August retail sales.

Elsewhere, news of fresh military conflicts along the India-Pakistan border may have hindered stocks' gains in the region. As such, China's Shanghai Composite and Hong Kong's Hang Seng finished with less impressive gains of 0.4% and 0.5%, respectively. In South Korea, the Kospi added 0.8%. India's Sensex, meanwhile, plunged 1.6%.

In Europe, stocks are also sporting solid gains at midday. Aside from the rapid rise in energy stocks, traders are also encouraged by a continued rebound in shares of banking giant Deutsche Bank --  though lending peer Commerzbank AG fell after announcing a major restructuring, which includes thousands of job cuts. Additionally, eurozone business confidence hit a year-to-date high in September. At last check, London's FTSE 100 was leading the way with a 1% gain, while France's CAC 40 was up 0.9%, and Germany's DAX up 0.5%. 

Overseas Trading September 29

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