It was an eventful day for month end: all about OPEC - ANZ

Analysts at ANZ offerd a market wrap.

Key Quotes:

"It was an eventful day for month end. OPEC managed to agree a cut in oil supply – the first in eight years – and Iran said OPEC will curtail output to 32.5m bbl/day. That, coupled with the strength in the November ADP report, pushed US Treasury yields higher. At the time of writing, the yield on the 10-yr US Treasury note is up 9bps to 2.39%. The USD also benefited from higher yields and stronger data despite expectations of passive dollar selling at month end."

"The US economy is in cruise mode at the moment and if oil can stabilise above USD50/bbl, headline inflation will continue to converge on target in the coming months. Inflation expectations duly responded with 10-yr breakeven inflation compensation rising to 1.97%."

"That is up markedly from a low of 1.37% in June. Elsewhere, the rise in oil helped commodity stocks. At the time of writing, the S&P 500 is up 0.1%, and the Dow Jones is up 0.4%. In the European session, the DAX rose 0.2% and the Euro Stoxx 50 +0.4%. WTI was up 8.5% at USD49/bbl for near-term delivery while gold fell 1.1% to $1175 oz."