Stock markets rally on OPEC agreement

Asian and European stock markets rallied today and energy-linked currencies advanced after OPEC's shock deal to trim oil output.
The announcement yesterday lit a fire temporarily under oil prices, sending petroleum-linked shares surging on Wall Street and later across Asian and European stock markets.
Despite crude later falling back on doubts about the cartel following up on its deal, energy firms managed to hold onto their strong share price gains.
"Even though there still have to be doubts whether the OPEC deal will ever actually be implemented, Royal Dutch Shell and BP are at the top of the FTSE 100 leader board" with gains of 4.0 and 5.3 per cent respectively, noted Russ Mould, investment director at AJ Bell.

Around 1615 IST, London's benchmark FTSE 100 was up 1.0 per cent overall.
In the eurozone, the Paris CAC 40 jumped 1.0 per cent and Frankfurt's DAX 30 gained 0.7 per cent compared with yesterday's closing levels.

An oil-price rally fuelled by OPEC's deal to cut crude output fizzled out today with analysts doubting the cartel's ability to seriously tackle a supply glut.
Exact details of the deal remain to be agreed and analysts said markets will now wait to see whether non-OPEC producers such as Russia, the United States and Canada will make cuts of their own.
Russian markets climbed today thanks to the temporary surge in energy prices.

And Russia's ruble, which lost nearly half its value in 2014, strengthened slightly. Other energy and commodity-linked currencies, such as the Malaysian ringgit and Canadian dollar, forged higher against the greenback.
"OPEC's production cut offers support for oil-related currencies," noted Lee Hardman, analyst at Bank of Tokyo- Mitsubishi UFJ.
Elsewhere, the euro was steady against the dollar, which in turn gained versus the safe haven yen.
Hardman added that the brief oil-price surge "helped to improve investor risk sentiment, lifting global equity markets, particularly shares of energy companies".
Stock markets in the energy-rich Gulf states meanwhile made solid gains with the Saudi bourse, the largest in the Middle East, up 0.76 per cent by mid-session.

In Asia, the share price of Chinese energy giant CNOOC piled on more than five per cent and PetroChina added three per cent, while Sydney-listed Woodside Petroleum won more than seven per cent.
Elsewhere, Germany's banking sector was in sharp focus as the country's second largest lender Commerzbank said today it plans to cut 9,600 jobs, or one-fifth of its workforce, by 2020 and withhold dividends to pay for a 1.1-billion-euro (USD 1.23-billion) restructuring.