S&P 500, Nasdaq post record highs as tech-related shares gain

NEW YORK – The Nasdaq and S&P 500 scored record closing highs on Monday, boosted by tech-related shares following the market’s strong November gains, as investors awaited this week’s economic data including the key monthly jobs report on Friday.

The Dow finished lower on the day. Both the Dow and S&P 500 recorded on Friday their biggest monthly percentage gains in a year.

The technology, communication services, and consumer discretionary sectors rose about 1% each on Monday, while the rest of the S&P 500 sectors were lower. Tesla shares advanced 3.5%, with Stifel raising its price target on the stock.

“We’re seeing a market that’s in a seasonably strong period just creep higher,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

“It’s a tough time for people to bail out, but by the same token, I don’t see an explosive finish to the year. There’s just too much uncertainty as to where we’re headed. … No one is quite sure what the plan is economically with the new administration.”

Former US President Donald Trump recaptured the White House in last month’s election and his Republican Party swept both houses of Congress, boosting stocks in November.

The Dow Jones Industrial Average fell 128.65 points, or 0.29%, to 44,782.00. The S&P 500 rose 14.77 points, or 0.24%, to 6,047.15 and the Nasdaq Composite climbed 185.78 points, or 0.97%, to 19,403.95.

Strategists have cited Trump’s potential plans for tax cuts and deregulation as a positive for stocks, but tariffs would be negative.

Investors also digested comments from Federal Reserve Governor Christopher Waller that he was inclined to cut the benchmark interest rate at the Dec. 17-18 meeting as monetary policy remained restrictive.

Investors have been expecting a quarter-point rate cut in December, but recent inflation data has raised worries that progress may have stalled.

The Fed began reducing rates in September by half a point, following that with a quarter-point cut in November.

Earlier on Monday, the Institute for Supply Management reported improved US manufacturing activity in November.

Aside from Friday’s hotly anticipated employment report, investors this week also will see private sector job growth data, the ISM’s services report, and the Labor Department’s weekly jobless claims.

Super Micro Computer surged 28.7% after the artificial intelligence server maker began searching for a new finance chief based on recommendations by a special committee formed to review its accounting practices.

Declining issues outnumbered advancers by a 1.08-to-1 ratio on the NYSE. There were 406 new highs and 64 new lows on the NYSE.

On the Nasdaq, 2,332 stocks rose and 2,060 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio.

Volume on US exchanges totaled 13.64 billion shares, compared with the 14.74 billion full-session average over the last 20 trading days.

(Reporting by Caroline Valetkevitch; Additional reporting by Shashwat Chauhan and Purvi Agarwal in Bengaluru; Editing by Maju Samuel and Richard Chang)

US yields little changed as Fed’s Waller points to December rate cut

NEW YORK – US Treasury yields were little changed on Monday, after trading higher for most of the session, as Federal Reserve Governor Christopher Waller said he was inclined to cut the benchmark interest rate at the Dec. 17-18 policy meeting.

The yield on the benchmark US 10-year Treasury note, which was up earlier after manufacturing data releases in the morning, pared gains to 4.197%, slightly up on the day, after Waller’s comments. The US two-year yield, which typically moves in step with interest rate expectations, was up 1.2 basis points at 4.182%.

Yields on the long end of the curve slipped, with those on US 30-year bonds down marginally at 4.368%.

“Policy is still restrictive enough that an additional cut at our next meeting will not dramatically change the stance of monetary policy and allow ample scope to later slow the pace of rate cuts, if needed, to maintain progress toward our inflation target,” Waller said in comments at a central bank symposium organized by the American Institute for Economic Research.

Waller compared the Fed’s battle with inflation to a mixed martial arts fighter in that sport’s unique arena. “Let me assure you that submission is inevitable — inflation isn’t getting out of the octagon.”

Ellis Phifer, managing director for fixed income capital markets at Raymond James in Memphis, said Waller’s comments were seen as reassuring. “His comment showed a stronger than usual support for a rate cut, but we still have to see what the jobs data will show later in the week.”

A closely watched part of the US Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an economic outlook indicator, flattened slightly to 0.8 bp, compared with 1.4 bps late on Friday.

The overall flattening was earlier driven by the positive US data, which had initially reduced the odds of a 25-bp cut by the Fed later this month. That has since been offset by Waller’s comments.

Following Waller’s remarks, the markets raised the odds of a 25-bp easing this month to 75%, from 66% late on Friday, according to CME’s FedWatch. At the same time, rate futures reduced the chances of a Fed pause to 25% from 34% on Friday.

Earlier on Monday, Treasury yields rose modestly after data showed that the Institute for Supply Management’s manufacturing PMI increased to 48.4 last month from 46.5 in October, above the 47.5 economists polled by Reuters had forecast.

Analysts looking closely at the manufacturing data saw some signs of weakness not evident in headline numbers. Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, said the headline improved, but details were disappointing, with 66% of manufacturing GDP contracting in November.

“The most important thing was the unexpected drop at the prices paid by manufacturers; that’s an interesting anecdote that could influence inflation indexes ahead,” said Vail Hartman, analyst on the US Rates Strategy team at BMO Capital Markets.

Meanwhile, this week’s slew of US employment data begins on Tuesday, with job openings in October, followed by the November ADP national employment report on Wednesday. The US nonfarm payrolls report will be out on Friday.

Although the focus is on the short-term FOMC decision, markets are also trying to estimate the longer-term interest rate level.

“We’ve already heard many Fed officials say their estimates of neutral policy this cycle has changed. The destination of policy over the next eighteen months and onward will matter a lot more for Treasuries at the long end of the curve than what happens this month,” said Will Compernolle, macro strategist at FHN Financial, in a research note.

(Reporting by Tatiana Bautzer; additional reporting by Chuck Mikolajczak; editing by Jonathan Oatis)

Buoyant dollar keeps bulls in check

Investors in Asia go into Tuesday’s session with a spring in their step following the upswing in global stocks and risk appetite on Monday, but wary that the buoyant US dollar can extinguish that optimism in a flash.

Also keeping regional sentiment in check will be unease around China’s economic predicament, even though purchasing managers index data over the last 72 hours showed that factory activity in November expanded at the fastest pace in months.

Much of that – the pickup in Chinese manufacturing activity, deepening disquiet about the outlook, and the dollar’s renewed vigor – is tied to US President-elect Donald Trump’s hardline stance on trade and threats of heavy tariffs when he takes office next month.

His social media broadside on Saturday to countries contemplating backing away from the “mighty” US dollar appears to have had an initial effect. Excluding Nov. 6, the day after the US election, the dollar’s 0.6% appreciation on Monday was its biggest rise in six months.

Europe’s economic and political travails, especially in France, are certainly at play, while the yen is drawing support from bets that the Bank of Japan could raise interest rates later this month.

But the dollar’s independent strength cannot be ignored, and bullish sentiment toward emerging markets is rarely sustained for long when the dollar is on the march.

Nor can China’s weakness be ignored. Some analysts say the positive PMI surprises are due to a ramp up in production before tariffs from Washington are levied, and China’s underlying economic health remains fragile.

China’s bond market would appear to back up that assertion. The 10-year yield on Monday fell below 2% for the first time, while the 30-year yield is now below its Japanese equivalent for the first time in at least 20 years.

Still, investors will draw comfort from the S&P 500 and Nasdaq’s rise to fresh peaks on Monday, and US Federal Reserve Governor Christopher Waller saying he is leaning toward a rate cut later this month.

Remarkably, after Monday’s spike the S&P 500 has registered more than 50 record highs this year. But will that be enough to lift Asian markets on Tuesday?

Asia’s calendar on Tuesday is light, with South Korean inflation the only major economic indicator on tap. It is one of several CPI releases this week following Indonesia’s on Monday and ahead of the latest snapshots from the Philippines, Taiwan and Thailand later in the week.

Economists polled by Reuters expect South Korea’s annual rate of headline inflation in November to accelerate to 1.7% from a three-and-a-half-year low of 1.30% in October. That would mark the biggest jump since August last year.

Here are key developments that could provide more direction to markets on Tuesday:

– South Korea consumer inflation (November)

– Bank of Thailand governor Sethaput Suthiwartnarueput speaks

– Thailand’s finance minister Pichai Chunhavajira speaks

(Reporting by Jamie McGeever; Editing by Bill Berkrot)

US bonds extend rally in holiday shortened session

NEW YORK – US Treasury yields dropped amid thin trading during the holiday-shortened market session on Friday, extending a weekly bond rally spurred by optimism about the new US Treasury secretary and some respite from inflation concerns.

Benchmark 10-year yields dipped to an over one-month low, while two- and thirty-year yields hit their lowest in over three weeks, partly because of holiday-week effects after Thanksgiving on Thursday as well as month-end investor flows.

“Month-end positioning is likely to be playing a role, particularly going into the long US Thanksgiving weekend, which is likely to have led to some increased demand for Treasuries,” said David Page, head of macroeconomic research at AXA Investment Managers.

The move lower in yields, which decline when prices rise, indicated further unwinding of the trades linked to Donald Trump’s win in the US presidential election, which had put downward pressure on bonds in previous weeks because of expectations for higher deficits and inflation during a second Trump presidency.

This week’s rally began after Trump named Scott Bessent as Treasury secretary last Friday and gained momentum after a string of well-received Treasury auctions as well as inflation data in line with estimates.

“The nomination of Bessent as US Treasury secretary … has eased fiscal concerns,” said Diana Iovanel, senior markets economist at Capital Economics.

For Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, Trump’s selection of Bessent suggested “economic rationality, potentially tempering fears of inflationary policies, possibly with a measured implementation of tariffs.”

Benchmark 10-year yields were last seen at 4.176%, their lowest since Oct. 25. Two-year yields, which more closely reflect monetary policy expectations, stood at 4.163%, their lowest since Nov. 5.

“It’s been a one-way slide lower in yield since the Asia reopen, though light flows have magnified the moves to a degree,” analysts at Citi wrote in a note early on Friday.

Since the beginning of November, 10-year yields have declined by about 10 basis points while two-year yields were roughly unchanged by the end of the month. Further out, 30-year yields have declined by about 11 basis points since the beginning of November to 4.366% on Friday.

The closely watched curve comparing two- and 10-year yields was last at 1.7 basis points, flatter than on Thursday – meaning the premium of long-term yields over shorter-ones was smaller.

That part of the curve inverted earlier this week for the first time in over a month, with two-year yields briefly higher than the 10-year. A curve inversion is a bond market signal of a possible economic contraction in the future.

US stock and bond markets were open for a half-day on Friday. The sustainability of this week’s decline in yields might become clearer once the new month starts next week.

For Page at AXA Investment Managers the weeks ahead will continue to be volatile as speculation mounts over the next US administration’s policies.

“Bonds look expensive to us at these yields,” he said.

(Reporting by Davide Barbuscia; editing by Jonathan Oatis and Diane Craft)

Global equity funds draw ninth weekly inflow in a row

Global investors stepped up purchases in equity funds in the week ended Nov. 27, encouraged by prospects of robust US growth under the Trump administration and boosted by cooling treasury yields.

Investors pumped a substantial USD 12.19 billion into global equity funds, a jump of 32% compared with about USD 9.24 billion worth of net acquisitions in the week before, LSEG Lipper data showed. It marked the ninth consecutive weekly inflow.

On Friday, global shares were on track for their best month since May, driven by optimism about strong US growth and the artificial intelligence investment boom, despite concerns over political turmoil and economic slowdown in Europe.

Last week, US President-elect Donald Trump’s appointment of fiscal hawk Scott Bessent as US Treasury Secretary raised market expectations of controlled debt levels in his second term, leading to a drop in Treasury yields.

Investors picked a significant USD 12.78 billion worth of US equity funds, extending net purchases into a fourth successive week. However, they withdrew USD 1.17 billion and USD 267 million out of Asian and European funds, respectively.

The financial sector witnessed robust demand as it drew USD 2.65 billion in net purchases, the fifth weekly inflow in a row. Investors also snapped up consumer discretionary, tech, and industrials sector funds totaling a hefty USD 1.01 billion, USD 807 million, and USD 778 million, respectively.

Global bond funds witnessed inflows for the 49th successive week. Investors poured USD 8.82 billion into these funds.

Corporate bond funds received a net USD 2.16 billion, the biggest weekly inflow in four weeks. Government bond funds and loan participation funds also witnessed notable purchases, totaling a net USD 1.9 billion and USD 1.34 billion, respectively.

At the same time, investors ditched USD 12.87 billion worth of money market funds in a second straight week of net sales.

The gold and precious metals funds gained a net USD 538 million, marking a 14th weekly inflow in 16 weeks.

Data covering 29,635 emerging market funds indicated that equity funds were out of favor for a fifth consecutive week with about USD 4.3 billion in net sales. Investors also divested bond funds to the tune of 2.58 billion, logging a sixth weekly net sales.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Gareth Jones)

Dollar faces crunch week for US rates, yen holds gains

SYDNEY – The dollar started in a cautious mood on Monday in what is shaping up to be a critical week for the prospect of US rate cuts, while the yen’s recent rebound was underpinned by wagers on rising rates at home.

Over the weekend, Bank of Japan Governor Kazuo Ueda said the next interest rate hikes are “nearing in the sense that economic data are on track,” following figures showing Tokyo inflation picked up in October.

Markets now imply a 56% chance the BOJ will hike by a quarter point to 0.5% at its policy meeting on Dec. 18-19.

Barclays economist Christian Keller said data on labor earnings this week should show a further pickup and all the signs were pointing to another strong “shunto” wage round in February.

“The wage and inflation picture continues to support further rate hikes, though whether the BOJ moves in December or January remains a close call,” he added.

The risk of an early hike was enough to keep the dollar pinned at 149.60 yen JPY=EBS, having shed 3.3% last week in its worst run since July. Support lies around 149.40/47 and 147.35.

The euro held at USD 1.0555, after bouncing 1.5% last week and away from a one-year trough of USD 1.0425. That left the dollar index flat at 105.790 =USD, having closed out November with a gain of 1.8% even after last week’s setback.

“Given the continued resilience of the US economy and a worsening outlook elsewhere, we don’t think this is the start of a deeper setback for the dollar,” said Jonas Goltermann, deputy chief markets economist at Capital Economics.

“But the bar for a further shift in expected interest rates in favor of the US in the near term is quite high,” he added. “A period of consolidation into year-end looks to us like the most likely scenario, although the risks remain skewed in favor of the dollar over the course of 2025.”

Key to the outlook for rates will be the November payrolls report due Friday where median forecasts favor a rise of 195,000 following October’s weather and strike-hit report, which could also be revised given a low response rate for that survey.

The jobless rate is seen edging up to 4.2%, from 4.1%, which should keep the Federal Reserve on course to cut by 25 basis points on Dec. 18.

Markets imply a 65% chance of such an easing, though they also only have two more cuts priced in for all of 2025.

A host of Fed officials are due to speak this week, including Fed Chair Jerome Powell on Wednesday, while other data include surveys of manufacturing and services.

The European Central Bank is also seen cutting rates this month, with markets implying a 27% chance it might even ease by 50 basis points on Dec. 12.

Political uncertainty is another drag for the single currency as investors wait to see if France’s government can survive the week intact.

France’s far-right National Rally leaders said on Sunday that the government had rebuffed its calls for more budget concessions, raising the chances of a no-confidence vote in the coming days that could topple Prime Minister Michel Barnier.

The threat of an ever-wider budget deficit saw French yields match those in Greece while the spread over German yields reached the highest since 2012.

(Reporting by Wayne Cole; Editing by Sam Holmes)

Gold braces for worst month in over a year on Trump-driven sell-off

Gold prices gained on Friday, boosted by a drop in the dollar and persistent geopolitical tensions, but bullion was still set for its worst monthly loss since September last year after a post-election sell-off driven by Donald Trump’s win.

Spot gold climbed 0.5% to USD 2,652.71 per ounce, as of 01:40 p.m. ET (1840 GMT), but was set for a weekly fall of over 2% after a sharp decline earlier this week. US gold futures settled 0.6% higher at USD 2,681.

Gold has dropped 3% so far this month, its worst monthly slide since September 2023, as “Trump euphoria” lifted the dollar earlier this month and stalled gold’s rally, triggering a post-election sell-off.

The dollar index fell to its lowest in over two weeks, but remains on track for a 2% rise in November as Trump’s Nov. 5 win fuelled expectations of big fiscal spending, higher tariffs, and tighter borders.

Gold, buoyed by geopolitical tensions and Federal Reserve interest rate cuts this year, now faces pressure as higher tariffs could stoke inflation and lead the Fed to adopt a cautious approach to further rate cuts.

It’s uncertain as of now, how Trump’s pledged tariffs will play out, said Jim Wyckoff, a senior market analyst at Kitco Metals.

However, “the uncertainty of the matter, the tariffs that could prompt a slowdown in economic growth could actually be beneficial for the gold market from a safe-haven basis.”

Bullion is traditionally seen as a safe investment during economic, geopolitical uncertainties and tends to thrive in a lower interest rate environment.

“Persistent global uncertainties continue to drive demand for gold as a safe-haven asset,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.

On Thursday, Israel’s military reported suspects in southern Lebanon, calling it a ceasefire breach with Hezbollah, while Russia launched its second major attack on Ukraine’s energy infrastructure this month.

Spot silver added 0.9% to USD 30.54 per ounce, platinum gained 1.7% to USD 946.83 and palladium rose 0.7% to USD 981.63, although they were all set for monthly losses.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Mohammed Safi Shamsi)

Trump’s BRICS warning shines light on emerging FX

The global market spotlight on Monday looks set to zoom in on the dollar, especially its performance against emerging market currencies, after US President-elect Donald Trump’s weekend warning against the so-called ‘BRICS’ nations.

In a social media post on Saturday, Trump demanded that the ‘BRICS’ countries – Brazil, Russia, India, China and South Africa – commit to not creating a new currency or supporting another currency that would replace the US dollar, or face 100% tariffs.

This comes after Trump had already injected additional volatility into world currency markets last week by proposing big tariffs against China, Mexico, and Canada – countries the US has some of its largest trade deficits with.

The dollar’s path on Monday will be fascinating to observe. It snapped an eight-week winning streak last week with its steepest weekly fall since mid-August, as US rate cut expectations cooled and Treasury yields fell.

But much of the dollar’s downward momentum last week was down to its weakness against the euro and yen. It has been much firmer against other G10 currencies – not least the Canadian dollar – and especially emerging and Asian currencies.

Sentiment toward emerging markets as the final month of the year begins is still mostly downbeat. Outflows from EM bond funds remain heavy, and according to analysts at Barclays EM hard-currency bond funds last week registered their second-largest outflow so far this year.

But there are more encouraging signs from China that the raft of stimulus and support measures from Beijing in recent months may be beginning to bear fruit.

A private survey on Sunday showed that new home prices in China rose at a year-on-year rate of 2.40% in November versus 2.08% in October. And on Saturday, China’s official purchasing managers index data showed that factory activity expanded modestly for a second straight month in November, and at its fastest pace in seven months.

Is there light at the end of the tunnel for China’s domestic economy? With Trump ramping up the trade threats ahead of his inauguration next month, policymakers in Beijing and China bulls will certainly be hoping so.

Asia’s economic calendar on Monday sees the release of a raft of manufacturing PMI reports, including China’s ‘unofficial’ Caixin manufacturing PMI data for November. Will that reinforce the modestly encouraging signals from the ‘official’ figures over the weekend?

Economists polled by Reuters expect a reading of 50.5, up from 50.3 in October, which would mark the fastest pace of expansion since June.

Other regional highlights on Monday include the latest Australian retail sales data and inflation figures from Indonesia. According to a Reuters poll, consumer prices rose at an annual rate of 1.50% in November, cooling from 1.71% the previous month. That would be the lowest rate of annual inflation since June 2021.

Here are key developments that could provide more direction to markets on Monday:

– China Caixin manufacturing PMI (November)

– Australia retail sales (November)

– Indonesia inflation (November)

(Reporting by Jamie McGeever; Editing by Diane Craft)

Jobs data set to pave way for rates path, stocks

NEW YORK – The coming week will give investors a fresh view into the health of the US economy with the release of a closely watched employment report that could help determine the trajectory of interest rates in the months ahead.

Stocks are heading into December with the benchmark S&P 500 near record highs following an over 25% year-to-date gain. Part of that performance has been fueled by expectations that the Federal Reserve will continue cutting interest rates into next year, after reducing borrowing costs by 75 basis points in 2024.

But uncertainty over the Fed’s rate trajectory has increased in recent months as a spate of robust economic data – including a blowout jobs report for September – stirs concerns that inflation could rebound if the central bank lowers rates too far, undoing two years of progress in tamping down prices.

While investors have largely welcomed evidence of economic strength, another round of strong jobs data on Dec. 6 could further erode expectations for Fed cuts and fuel wariness over inflation, investors said.

The jobs data “is going to provide a more clear picture of the underlying trend, which is important as there’s a lot of debate and uncertainty around the path for interest rates by the Fed,” said Angelo Kourkafas, senior investment strategist at Edward Jones.

Wall Street has already tempered expectations for cuts over the coming year. Fed funds futures show investors betting the rate will fall to 3.8% by the end of next year, from its current 4.5% to 4.75% range. That is more than 100 points higher than what they had priced in September.

Fed Chair Jerome Powell said earlier this month that the central bank does not need to rush to lower rates, citing a solid job market and inflation that remains above its 2% target.

The Fed is “starting to question out loud how much more easing the economy, especially the labor market, really needs,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Futures late on Wednesday were pricing a roughly 70% chance that the central bank will cut rates by 25 basis points at its Dec 17-18 meeting, according to CME Fedwatch.

Economists polled by Reuters expect payrolls to have climbed by 183,000 jobs in November, and a report that far exceeds those forecasts could shake confidence in a December move and bruise stocks, said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

“There might be a little bit of a sell-off here if you see the jobs report come in stronger than expected,” he said.

Equities have gotten a boost from the view that President-elect Donald Trump’s policies such as tax cuts and deregulation could spur growth despite their inflationary potential.

Stocks in recent days largely shrugged off Trump’s pledge to impose big tariffs on Canada, Mexico, and China, America’s three largest trading partners. More optimism was reflected in the Conference Board’s survey released on Tuesday, which showed a record 56.4% of consumers expect stock prices to increase over the next year.

Meanwhile, the S&P 500 is trading at more than 22 times earnings estimates for the next 12 months, its highest P/E valuation in more than three years, according to LSEG Datastream.

To strategists at Yardeni Research, the mounting optimism could be a worrisome signal.

“A more immediate risk to the stock market rally than tariffs is that investors are getting too bullish,” Yardeni Research said in a note on Thursday. “From a contrarian perspective, this suggests that a pullback is likely.”

(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)

Oil up as Israel, Hezbollah trade accusations of ceasefire violation

Oil prices ticked up on Thursday after Israel and Lebanese armed group Hezbollah traded accusations that their ceasefire had been violated, and as Israeli tanks fired on south Lebanon.

OPEC+ also delayed by a few days a meeting likely to extend production cuts.

Brent crude futures edged up by 34 cents, or 0.5%, to USD 73.17 a barrel by 2026 GMT. US West Texas Intermediate crude futures were up 16 cents, or 0.2%, at USD 68.88. Trading was thin because of the US Thanksgiving holiday.

Israel’s military said the ceasefire was violated after what it called suspects, some in vehicles, arrived at several areas in the southern zone.

The deal, which took effect on Wednesday, was intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.

The Middle East is one of the world’s major oil-producing regions, and while the ongoing conflict has not so far not impacted supply it has been reflected in a risk premium for traders.

Elsewhere, OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event.

Also supporting prices, OPEC+ sources have said there will again be discussion over another delay to an oil output increase scheduled for January.

“It’s highly unlikely they are going to announce an increase in production at this meeting,” said Rory Johnston, analyst at Commodity Context.

The group pumps about half the world’s oil but has maintained production cuts to support prices. It hopes to unwind those cuts, but weak global demand has forced it to delay the start of gradual increases.

A further delay has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank. “The only question is whether it’s a one-month pushback, or three, or even longer.”

Depressing prices slightly, US gasoline stocks rose 3.3 million barrels in the week ending Nov. 22, the US Energy Information Administration said on Wednesday, countering expectations of a small draw in fuel stocks ahead of holiday travel. EIA/S

Slowing fuel demand growth in top consumers China and the US has weighed on oil prices this year.

(Reporting Nia Williams in British Columbia and by Paul Carsten and Enes Tunagur in London; Editing by David Goodman, Jason Neely, David Evans, David Gregorio, and Diane Craft)

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