NEW YORK Oil prices rose to a near one-month high on Tuesday on expectations of lower U.S. crude inventories, while the dollar slid as investors remained cautious ahead of meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The upcoming French presidential election also kept investors cautious as political risk concerns remained active ahead of the Trump-Xi meetings this Thursday and Friday.
U.S. stocks traded little changed, following modest gains in Europe, with the energy and industrials sectors helping buoy Wall Street and European shares.
Global and U.S. crude oil benchmarks rose to their highest since March 8. They have recovered 8 percent since lows late last month on expectations the Organization of the Petroleum Exporting Countries (OPEC) and other producers would cut output.
“OPEC compliance is still holding better than we expected with next week’s release of various monthly agency reports likely to confirm,” Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a note.
U.S. crude CLcv1 rose 79 cents to settle up at $51.03 per barrel and Brent LCOcv1 settled up $1.05 to $54.17.
The American Petroleum Institute will report inventory data at 4:30 p.m. EDT (2030 GMT) on Tuesday, while the U.S. Energy Information Administration will announce official figures on Wednesday at 10:30 a.m. EDT. [API/S]
Industrial and material stocks got a boost after Trump said the U.S. infrastructure bill may top $1 trillion and that his administration was seeking a major “haircut” on the Dodd-Frank banking regulation, rekindling some of his campaign promises.
The Dow Jones Industrial Average .DJI rose 28.93 points, or 0.14 percent, to 20,679.14. The S&P 500 .SPX lost 0.11 points, or -0.00 percent, to 2,358.73 and the Nasdaq Composite .IXIC dropped 1.36 points, or 0.02 percent, to 5,893.32.
In Europe, the pan-regional FTSEurofirst 300 index .FTEU3 rose 0.22 percent to close at 1,497.77 while MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.01 percent.
Benchmark U.S. Treasury yields touched their lowest in more than five weeks before edging higher to trade little changed on doubts about Trump’s ability to boost fiscal stimulus.
Yields on benchmark 10-year notes US10YT=RR dropped to 2.314 percent, their lowest since Feb. 24, and last traded up 1/32 in price to yield 2.348 percent.
South Africa’s rand and government bonds recovered after a sharp selloff following S&P Global Ratings’ decision to cut the country’s credit rating to sub-investment grade, while stocks rose led by bullion shares.
The rand ZAR=D3 was 1.06 percent stronger at 13.5250 per dollar after falling earlier in the session to a near 3-months low of 13.9400.
(Reporting by Rodrigo Campos, additional reporting by Scott DiSavino and Gertrude Chavez-Dreyfuss in New York and Yashaswini Swamynathan in Bangalore; Editing by Nick Zieminski)