Crude rallied on the prospect a deal to cut global supply will be extended, leading a broader advance across commodities and spurring the currencies of major exporters. US stocks advanced, while the dollar retreated
West Texas Intermediate jumped more than 3 percent after Saudi Arabia and Russia said they’d extend a production-cut deal longer than expected. The Australian and Canadian dollars, South African rand and Mexican peso were among the best performing major currencies. The S&P 500 Index edged higher, while emerging-market equities gained a sixth day.
Crude also got a boost from China’s sweeping plan to boost global infrastructure, though data showed the country’s factory output and investment slowed in April. Commodities have struggled for weeks as signs of a crude glut re-emerged and President Donald Trump struggled to get his infrastructure plan underway. Numbers on American retail sales and inflation also cast a shadow on growth. Read our Markets Live blog here.
The most important US data point will be industrial production on Tuesday. A squeeze on UK consumers may be evident Tuesday, when inflation figures may show a further surge to 2.6 percent in April. Wednesday’s labor report may reveal pay rose 2.1 percent, down from 2.2 percent. The EIA releases its monthly drilling productivity report on Monday, followed by the IEA’s estimates of April OPEC production on Tuesday. OPEC’s internal Economic Commission Board meets in Vienna on Wednesday to discuss the market in preparation for the group’s formal meeting on May 25. Singapore exports and Malaysia CPI for April are due Wednesday, and the Australian jobs report a day later. In Japan, GDP for the first quarter will be the focus on Thursday, with growth expected to have accelerated. The Philippines will also publish first-quarter GDP figures. Bank Indonesia will meet, and is expected to keep rates on hold. The S&P 500 Index rose 0.2 to 2,396.37 as of 9:32 a.m. in New York. It ended last week down 0.4 percent, its first loss since mid-April.