* Crude futures add to Wednesday's gains on OPEC deal
* Wall St slides, bank stocks weigh
(Updates to U.S. market close)
By Rodrigo Campos
NEW YORK, Sept 29 Crude oil futures rose on
Thursday, adding to the previous session's rally on optimism
over an OPEC plan to curb output, while stocks fell as Deutsche
Bank tumbled after a report said trading clients have withdrawn
excess cash and positions held in the largest German lender.
Energy stocks fared better than the rest of the market as
oil prices rose. The Organization of the Petroleum Exporting
Countries agreed to cut output to a range of 32.5 million - 33.0
million barrels a day from the group's current estimate of 33.24
But the mood elsewhere was sour as Deutsche Bank, despite
saying it was confident clients know its financial position is
stable, saw its U.S.-traded shares hit a record low of $11.185.
The stock closed down 6.7 percent at $11.48 in record volume.
The slide, alongside a grilling of Wells Fargo's chief
executive by U.S. lawmakers amid a call for the bank to be
broken down due to a scandal over its opening of client accounts
without agreement, weighed heavily on bank stocks.
The S&P 500 bank index fell 1.6 percent and was on
track to lose more than 5 percent this month. Wells Fargo
fell 2.1 percent to $44.37.
"This Deutsche Bank story is really casting a very long
shadow over equity markets," said Peter Kenny, senior market
strategist at Global Markets Advisory Group, in New York.
The immediate cause of Deutsche's crisis is a fine of up to
$14 billion from the U.S. Department of Justice for its sale of
"There is very little give in the system for a significant
disruption and if investors move down that road where they once
again become 'risk-off,' then the first line of fire is going to
be these large money center banks," said Kenny.
He said the OPEC deal was preventing the equity market from
"The OPEC announcement certainly was well-received by the
market and the long beleaguered energy sector has found some
tailwind after so many quarters of disappointing earnings."
The Dow Jones industrial average fell 195.79 points,
or 1.07 percent, to 18,143.45, the S&P 500 lost 20.24
points, or 0.93 percent, to 2,151.13 and the Nasdaq Composite
dropped 49.39 points, or 0.93 percent, to 5,269.15.
The European oil and gas index soared 4.4 percent on
its best day in three months, but the pan-European STOXX 600
index closed flat. The pan-European FTSEurofirst 300
index ended up 0.1 percent, while MSCI's gauge of
stocks across the globe fell 0.3 percent.
In Russia - a major oil producer - the dollar-denominated
RTS share index rose 2.3 percent.
Oil stocks and the weaker yen overnight also lifted Tokyo
shares, which closed 1.4 percent higher. Nikkei futures
fell 0.1 percent.
U.S. crude was up 1.4 percent at $47.72 a barrel and
Brent last traded at $49.07, up 0.8 percent on the day.
The safe-haven Japanese yen fell as much as 1.2 percent
versus the U.S. dollar, but cut its losses by more than half as
stocks sold off late in the U.S. session.
It was last down 0.4 percent at 101.06 per dollar, having
fallen as low as 101.84.
U.S. Treasury yields inched lower, with benchmark 10-year
notes up 2/32 in price to yield 1.5616 percent, down
from 1.567 percent on Wednesday.
However, U.S. yields remain trapped in tight ranges and
could resume their recent downtrend given geopolitical tensions
and political uncertainty, analysts said.
"I wouldn't get caught up in the short-term moves in the
Treasury market," said Mike Materasso, co-chair of Franklin
Templeton's fixed income policy committee in New York. "The
oscillations of five to 10 basis points are not that significant
because if you look at the 10-year chart over the last three
months, we're still trading in a narrow range."
Copper rose 0.5 percent to $4,841 per tonne. Spot
gold was off 0.1 percent at $1,320.06 an ounce.
(Additional reporting by Chuck Mikolajczak, Gertrude
Chavez-Dreyfuss and Sam Forgione; Editing by Meredith Mazzilli
and Dan Grebler)