The European Stocks Story Is All About Oil
The European stocks story is all about oil this morning. Global crude prices surging the most in 17 months, after a historic agreement over the weekend which cemented production cuts between OPEC members and non-OPEC members. The first time they've come together since 2001 and that's lifted crude prices all around the world. Energy stocks have been lifted across the board but the positioning in other equities is keeping gains muted.
In fact, we're modestly in the red for European stocks today as we head into the open of the European session. The Dow has crawled higher because of that energy weight but nonetheless we might get a little bit of pull back from the S&P 500 and the NASDAQ today, as investors recalibrate their assumptions for growth and inflation and get themselves set for the Federal Reserve's rate increase later this week.
Bond markets are on the move today. We're seeing significant spikes in global bond yields, taking US Treasuries to 2.51% - the highest level since 2014. Very big implications for European and US stocks but also inflation expectations
