- As a result of the unexpected production decrease from OPEC+, US equity futures fell and the dollar rose along with Treasury yields, sending oil prices up roughly 6%.
- The group's plan to cut output by more than 1 mln BPD comes as a surprise to markets expecting a near-term peak in inflationary pressure. The group had earlier stated that it would keep supplies stable.
- The dollar gained ground versus the majority of G-10 currencies. The Norwegian krone strengthened as the Nordic country benefited from increasing energy prices.
- The policy-sensitive 2-yr Treasury rate increased by around five bps to 4.08%. On Friday, Treasuries concluded a quarter of wild swings, with yields falling as investors bet on interest-rate decreases.
- Futures for the S&P 500 dipped 0.2% on Monday, while those for the Nasdaq 100 sank 0.6% as Friday's upbeat optimism faded. The S&P 500 gained 3.5% last week, the highest since November, while the tech-heavy Nasdaq 100 gained the most in a quarter since June 2020.
- On the back of the output cut, Goldman Sachs raised its Brent crude price prediction, forecasting it to reach $95 per barrel by year end and $100 in December 2024.
