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GLOBAL MARKETS-Firmer crude price lifts stocks, hurts U.S. dollar

Published 16/05/2017, 01:54 am
© Reuters.  GLOBAL MARKETS-Firmer crude price lifts stocks, hurts U.S. dollar
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(Updates with U.S. markets, changes dateline from previous LONDON)

* Worries over cyber attack relegated to background

* Commodity-linked currencies rise

* S&P 500 hits record high

By Rodrigo Campos

NEW YORK, May 15 (Reuters) - Commodity-linked stocks and world currencies got a lift on Monday from a surge in crude oil prices after major producers Saudi Arabia and Russia said they would extend oil supply cuts into 2018.

Energy ministers from the world's top two oil producers said cuts, which were set to expire next month, should continue until March, longer than an optional six-month extension specified in the deal. the two biggest oil producers of the world reach a consensus on the extension of a supply cut, the market will listen," Tamas Varga, analyst at oil broker PVM, said in a report.

"Rhetoric is doing its job but this must be backed by action in less than two weeks' time."

The Organization of the Petroleum Exporting Countries meets in Vienna on May 25 to consider the extension.

U.S. crude CLcv1 rose 2.72 percent to $49.14 per barrel and Brent LCOcv1 was last at $52.09, up 2.46 percent on the day.

The news from the energy sector more than offset concern over the weekend after a successful missile test by North Korea and a cyber attack that affected computers in more than 150 countries. ATTACK

The global "ransomware" cyber attack disrupted factories, hospitals, shops and schools, but spurred investors on Monday to buy stocks set to benefit from higher cyber security spending by firms and government agencies. exchange-traded fund of cyber security shares across the globe HACK.K hit a near two-year high and was last up 3.3 percent at $30.74.

U.S. cyber stocks jumped, but the largest advancing sector on Wall Street was energy as shares tracked oil prices higher. The benchmark S&P 500 index hit a record high.

"At this level, there isn't too big a correlation between oil and equities but since we've seen oil fall quite a bit in a month or so, today's rally in oil is helping the market grind higher," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.

The Dow Jones Industrial Average .DJI rose 72.73 points, or 0.35 percent, to 20,969.34, the S&P 500 .SPX gained 10.67 points, or 0.45 percent, to 2,401.57 and the Nasdaq Composite .IXIC added 23.24 points, or 0.38 percent, to 6,144.47.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.01 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.50 percent.

Emerging market stocks rose 0.90 percent. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.7 percent higher, while Japan's Nikkei .N225 lost 0.07 percent.

CRUDE, DATA WEIGH GREENBACK

The currencies of resource-linked economies got a boost from the jump in oil prices. The Canadian dollar hit its highest level in over two weeks against the greenback.

The U.S. dollar was also hurt by weak data on New York State area manufacturing. dollar index .DXY , tracking the currency against a basket of other major units, fell 0.36 percent, with the euro EUR= up 0.45 percent to $1.0977.

The Japanese yen weakened 0.20 percent versus the greenback at 113.60 per dollar, while Sterling GBP= was last trading at $1.2915, up 0.19 percent on the day.

The Mexican peso strengthened 0.67 percent versus the U.S. dollar at 18.68.

The Canadian dollar strengthened 0.41 percent versus the greenback at 1.37 per dollar.

U.S. Treasury yields slipped after the weak U.S. data.

Benchmark 10-year notes US10YT=RR last fell 2/32 in price to yield 2.3398 percent, from 2.333 percent late on Friday.

Spot gold XAU= added 0.4 percent to $1,233.79 an ounce. U.S. gold futures GCcv1 gained 0.48 percent to $1,233.60 an ounce.

Copper CMCU3 rose 0.94 percent to $5,611.50 a tonne.

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