(Updated to reflect U.S. market open)
U.S. stocks open higher after sell-off in September
Oil surges over 5% on reduced supply outlook
Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
LONDON/WASHINGTON, Oct 3 (Reuters) - The final quarter
of the year got a boost Monday as U.S. stocks surged in early
trading, shaking off a gloomier start in global markets while
oil prices jumped over 5%.
Oil prices rocketed upwards after the Organization of the
Petroleum Exporting Countries and its allies, a group known as
OPEC+, said it would consider reducing output, while sterling
rallied after the British government said it would reverse a
controversial tax cut that had rocked UK markets.
In early trading, the Dow Jones Industrial Average
rose 1.27%, the S&P 500 gained 1.14% and the Nasdaq
Composite added 0.82%. The early jump came after U.S.
stocks posted their worst September in roughly two decades, as
sentiment remained frail given worries that aggressive interest
rate hikes from the U.S. Federal Reserve and others raise global
The MSCI world equity index, which tracks
shares in 45 countries, was last up 0.76%.
European equity markets were a sea of red, with the STOXX
600 index down 0.4%, pulling back from earlier losses of 1.4%
. Shares in beleaguered Swiss bank Credit Suisse
fell around 10% in early trading, reflecting market
concern about the group as it finalises a restructuring
programme due to be announced on Oct. 27.
News of the British government's tax U-turn didn't appear to
lift broader sentiment but probably helps to calm market worries
about fiscal excess, said Kallum Pickering, senior economist at
Berenberg Bank in London.
"Markets seem to have lowered their expectations for the BoE
bank rate while gilt yields have fallen further from their
recent highs. Less tight financial conditions may ease the
near-term shock on economic performance," said Pickering.
Oil prices rallied on reports what OPEC+ will this week
consider cutting output by more than 1 million barrels a day,
for its biggest reduction since the pandemic, in a bid to
support the market. Brent crude rose more than 5% to
almost $90 a barrel and U.S. West Texas Intermediate crude
was up over 6%, at over $84 a barrel.
Britain's battered pound was up around 0.4% at
$1.12085 and its government bond yields fell, pushing their
price up, following the UK policy reversal
London's FTSE-100 stock index was down 0.5%, falling
in line with other markets.
Trade across Asia was generally subdued. South Korea had a
national holiday and China entered its "Golden Week" break on
Monday. Hong Kong is closed for a public holiday on Tuesday.
Gold was 0.6% firmer at $1,669.20 an ounce.
The U.S. dollar continued its run upwards. The dollar index
, which tracks the greenback versus a basket of six
currencies, rose 0.19%.
(Reporting by Dhara Ranasinghe, additional reporting by Sam
Byford in Tokyo; Editing by Hugh Lawson, David Evans and