U.S. private employers stepped up hiring in November and consumer spending increased last month, the latest signs of economic strength that could further cement the case for an interest rate hike from the Federal Reserve next month.
The U.S. economy continued to expand in October and November, the Federal Reserve said on Wednesday, but there were only modest gains in wages and prices and the strong dollar was weighing on manufacturers.
The dollar touched a 9-1/2-month high of 114.830 yen, adding to gains made overnight when it surged 1.8 percent. The euro was steady at $1.0596 EUR= after shedding 0.6 percent the previous day.
The dollar index .DXY was firm at 101.51 after rallying overnight from a low of 100.84.
Oil soared more than 10 percent on Wednesday to over $50 a barrel and its highest in a month as some of the world's largest producers agreed to curb production for the first time since 2008 in a bid to support prices.
U.S. West Texas Intermediate crude CLc1 futures for January delivery settled up $4.21 to $49.44 a barrel, a 9.6 percent gain. They earlier rose 10 percent, the largest one-day move since February.
Brent crude LCOc1 futures for January delivery settled up $4.09 a barrel or 8.82 percent at $50.47 a barrel. The contract expires Wednesday, and the February contract LCOc2 rose 8.9 percent to $51.51
Crude prices rose nearly 5 percent for the month. However, they are unlikely to skyrocket further in reaction to the deal and the rally may even be short-lived, traders and analysts said.
The Organization of the Petroleum Exporting Countries, which accounts for a third of global oil supply, agreed to cut production from January by around 1.2 million barrels per day (bpd), or over 3 percent, to 32.5 million bpd.
Trump announced on Twitter today that he will hand all control of his business empire to his children and advisors in mid-December, apparently responding to growing criticism over the conflicts of interest due to start with his presidency on 20 January.
Reference: Reuters
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