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OPEC Expands Push to Secure Production Cut Deal

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Oil jumps as OPEC pushes for a deal, there are power struggles inside Trump's transition team, and the odds of a Fed rate hike odds near 100 percent. Here are some of the things people in markets are talking about today.

Oil surge

A barrel of West Texas Intermediate for December delivery was trading at $45.47 at 5:04 a.m. ET after surging 5.8 percent in trading yesterday. The rise comes on the back of an increased push from OPEC members to finalize an oil production cut deal in time for a meeting due in Vienna at the end of the month. Meanwhile, the International Energy Agency said that U.S. oil production will grow more than previously thought this decade as shale drillers adapt to low prices, while suppliers elsewhere will be hit harder by OPEC's fight for market share.

Transition team

Power struggles inside President-elect Donald Trump's transition team are slowing efforts to form a new government, with former House Intelligence Committee Chairman Mike Rogers abruptly departing yesterday. According to a person familiar with the matter, Trump is considering nominating Texas Senator Ted Cruz to serve as U.S. attorney general

Fed bets

One place the Trump victory does seem to have produced some certainty is market expectations of December's interest rate decision from the Federal Reserve. Market-implied odds of a rate hike are approaching 100 percent. Federal Reserve Bank of St. Louis President James Bullard said that Trump's policies could lead to a medium-term boost to the U.S. economy, adding that a single rate increase "possibly in December" would be sufficient to move policy to a neutral setting. 

Markets mixed

Overnight, the MSCI Asia Pacific Index climbed 0.5 percent, while Japan's Topix index closed 1.3 percent higher, within 15 points of entering a bull market. In Europe, the Stoxx 600 Index pared earlier gains to stand 0.1 percent higher at 5:16 a.m. ET as energy producers rose. S&P 500 futures were 0.1 percent lower

Brexit confusion

Italy's Economic Development Minister Carlo Calenda said that the British government's Brexit strategy is chaotic, while comments from Foreign Secretary Boris Johnson in which he described the idea that freedom of labor movement is a fundamental right in Europe as a "myth," led to an admonishment from one of the EU's chief Brexit negotiators. There was some good news for the U.K. government this morning, as the unemployment rate unexpectedly fell to 4.8 percent, but even that was tempered by signs that the labor market may be cooling. 

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