* Oil roars ahead on OPEC deal to cut output to 32.5 mln bpd
* Bond market slumps on upbeat U.S. data, Mnuchin comment
* Dow, S&P hit record highs before receding in late trading
* Gold heads for biggest monthly fall since mid-2013
(Updates market action, adds quote)
By Richard Leong
NEW YORK, Nov 30 Oil prices jumped around 9
percent on Wednesday as OPEC members sealed a deal to cut
production, while upbeat U.S. economic data and comments from
the U.S. Treasury Secretary nominee triggered a bond market
sell-off, marking a miserable November for Treasuries.
Higher crude prices bolstered shares of energy producers and
stock prices around the world, with the Dow and S&P 500 stock
indexes touching record highs.
An improving view on global growth, led by the United States
on hopes of tax cuts and federal spending under a Trump
administration, rekindled the dollar's advance toward a near
"Everything seems to be coming together for more growth and
risk appetite," said Larry Milstein, head of agency and
government trading at R.W. Pressprich & Co. in New York.
Gold lost its safe-haven luster as investor confidence
strengthened, posting its worst monthly loss since mid-2013.
The Organization of the Petroleum Exporting Countries has
agreed its first output limiting deal in eight years in an
effort to deal with a global supply overhang, an OPEC source
told Reuters as the debates continued in Vienna on the size of
each member's cuts.
Brent crude settled up $4.09, or 8.82 percent, at
$50.47 a barrel. U.S. crude settled up $4.21 or 9.31
percent at $49.44.
The rally in energy shares helped lift the Dow and the S&P
500 to record intraday highs before retreating in late trading.
The blue-chip U.S. stock indexes were also briefly boosted by
bank stocks on bets of loosening of regulation under Trump and a
The Dow Jones industrial average ended up 1.98
points, or 0.01 percent, to 19,123.58, the S&P 500 closed
down 5.85 points, or 0.27 percent, to 2,198.81 and the Nasdaq
Composite finished down 56.24 points, or 1.05 percent,
For November, the Dow gained 5.4 percent, the S&P rose 3.4
percent and the Nasdaq increased 2.6 percent.
European stocks also advanced on a jump in oil companies
. But regional banks struggled after news Royal Bank of
Scotland failed a Bank of England stress test and
Italian lenders fell before a referendum on the country's
political system on Sunday.
Europe's broad FTSEurofirst 300 index rose 0.53
percent at 1,350.85, raising its November gain to 0.9 percent.
The MSCI world equity index, which tracks
shares in 45 nations, fell 0.50 point or 0.12 percent, to
413.43, reducing its monthly gain to 0.6 percent.
The jump in oil prices, together with stronger-than-expected
data on U.S. private job growth and regional manufacturing on
Wednesday, ignited a wave of selling in bonds, pushing benchmark
U.S. yields toward their highest since July 2015.
An aversion to owning long-dated U.S. government bonds grew
after U.S. Treasury nominee Steven Mnuchin told CNBC television:
"We'll look at potentially extending maturity of the debt
because eventually we're going to have higher interest rates."
U.S. 10-year Treasury note yield rose 9 basis
points to 2.39 percent, a tad below last week's 2.42 percent
that was the highest since July 2015.
The German 10-year Bund yield was 4 basis points higher at
0.26 percent, while the Japanese 10-year yield edged up 1 basis
point at 0.03 percent.
Bonds across the world lost about $2 trillion in market
value since the Nov. 8 U.S. election before they recovered a bit
this week, according to Bank of America Merrill Lynch
Rising U.S. yields and upbeat domestic data pushed the
dollar index up 0.59 percent at 101.53, which was short
of the near 14-year high of 102.05 set last week. It was up
about 3 percent for a second month in November.
Meanwhile, gold lost 8.2 percent in November for its biggest
monthly decline since June 2013, largely pressured by the bets
of a series of U.S. interest rate hikes over the next year as
U.S. growth seemed to accelerating.
Spot gold prices fell $16.06 or 1.35 percent, to
$1,172.28 an ounce.
(Additional reporting by Caroline Valetkevitch in New York and
Marc Jones and Jemima Kelly in London; Editing by Nick Zieminski
and James Dalgleish)