* Oil roars ahead on OPEC deal to cut output to 32.5 mln bpd
* Upbeat data, Mnuchin comment spark bond market selloff
* Dow, S&P hit record highs, led by energy, bank sectors
* Gold heads for biggest monthly fall since mid 2013
(Updates market action, changes data)
By Richard Leong
NEW YORK, Nov 30 Oil jumped on Wednesday as OPEC
members clinched a deal to cut production, while upbeat U.S.
economic data and comments from the U.S. Treasury Secretary
nominee triggered a selloff in the bond market.
Higher crude prices bolstered shares of energy producers and
stock prices around the world, with the Dow and S&P 500 hitting
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 push toward a near
"Everything seem 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.
Stronger investor confidence reduced safe-haven demand for
gold, which was on track for its steepest monthly loss since
The Organization of the Petroleum Exporting Countries has
agreed its first output limiting deal in eight years in an
effort to deal with global supply overhang, an OPEC source told
Reuters as the debates continued in Vienna on the exact size of
each member's cuts.
Brent crude was last up $3.58, or 7.72 percent, at
$49.96 a barrel. U.S. crude was last up $3.28, or 7.25
percent, at $48.51 per barrel.
The rally in energy shares helped lift the Dow and S&P 500
to record intraday highs. The blue-chip U.S. stock indexes were
also boosted by bank stocks on bets of loosening of regulation
under Trump and a Republican-controlled Congress.
The Dow Jones industrial average rose 66.43 points,
or 0.35 percent, to 19,188.03, the S&P 500 gained 2.69
points, or 0.12 percent, to 2,207.35 and the Nasdaq Composite
dropped 23.18 points, or 0.43 percent, to 5,356.73.
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.
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 levels since July 2015.
An aversion to own long-dated U.S. government bonds grew
following comments from U.S. Treasury nominee Stevem Mnuchin who
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 10 basis
points to 2.40 percent, a tad below last week's 2.42 percent
that was the highest since July 2015.
German 10-year Bund yield was 4 basis points higher at 0.26
percent, while Japanese 10-year yield edged up 1 basis point at
Rising U.S. yields and upbeat domestic data pushed the
dollar index up 0.72 percent at 101.66, which was still
short of the near 14-year high of 102.05 set last week.
Meanwhile, gold was on track for its biggest monthly
decline since mid-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 $16.81 or 1.41 percent, to
$1,171.53 an ounce.
(Additional reporting by Marc Jones, Jemima Kelly in London;
Editing by Susan Thomas and Nick Zieminski)