Oil prices jump on OPEC agreement

Oil prices spiked higher yesterday after OPEC reached agreement to cut production (by around 1.2 million barrels per day to 32.5m barrels p/d), with some other non-OPEC countries, including Russia, also agreeing to reduce output. Brent crude is about $5 (or almost 11%) higher at $52 p/b, and so back close to its 2016 high of just over $53 p/b

A combination of higher oil prices and positive economic data contributed to a renewed rise in US bond yields, with 10-year yields closing up around 10bps at almost 2.40%. Comments by the new US Treasury Secretary regarding the ‘largest tax change since Reagan’ – read tax cuts – added to the rise in yields

Rising US yields also supported the dollar. It has risen to new highs against the yen (at over Y114) and is a touch firmer against the euro (at around $1.06). Sterling is trading just below 85p against the single currency

The annual increase in UK house prices slowed again in November according to the Nationwide index, falling to a 10-month low of 4.4%

Data due today includes manufacturing PMIs in the major economies, Euro area unemployment and US jobless claims