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T3's Take 3: Oil Prices Skyrocket on OPEC Chatter


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live
T3 Live cordially invites you to our first annual Finance Festival, scheduled for November 6-8 in sunny Miami, Florida.

Scott Redler will be speaking about trading and technical analysis, and he'll be joined by a truly impressive team of Wall Street experts, including Barry Ritholz, Nicole Sherrod, Evan Lazarus, Doug Robertson, Josh Brown, JC Parets, and many more.

We've even booked a good old-fashioned bull vs. bear debate between Jeff Saut, Chief Investment Officer of Raymond James, and John Mauldin, founder of Mauldin Economics.

Read about the event here.
Oil Prices Jump

Oil prices began to rally after OPEC released its monthly bullentin. In the report, OPEC's oil producers stated they were becoming concerned by the drop in oil prices, which have been trading near six-year lows. OPEC countries said that they "stand ready to talk to all other producers."

Meanwhile, in Russia, a Kremlin aide stated that President Vladimir Putin will discuss possible mutual steps in order to raise global prices while meeting with Venezuelan President Nicolas Madura.

OPEC is scheduled to meet on December 4, but there have been calls for an emergency meeting.

The US Energy Information Administration (EIA) stated that US oil production this year was lower than previously estimated. Production was hit by the glut in prices, with new investments proving uneconomical.

Oil prices rallied over 7% today.

World Equity Markets

Asian equities closed mildly lower today. Japan's Nikkei was hit slightly after a small yen rally hit shares of exporting companies, and the release of weak industrial production data. Hong Kong's Hang Seng gained  0.3%.

Europe was also rattled by the events in China. Today's close marked the worst monthly performance for European equities in four years. The French CAC closed down 0.5%, and the German DAX fell 0.4%.

US markets followed global markets and had a weak day The S&P 500 closed down 0.8%. The biotech sector was hit particularly ahrd as traders avoided risky stocks. The NASDAQ Biotechnology ETF (IBB) closed down 3.2%.

The energy sector was the day's best performing sector given the jump in oil prices. The Energy SPDR Fund (XLE) finished up 1.1%.

Treasury yields rose slightly, while the US dollar's performance was mixed against most major currencies, losing value against the Yen, Canadian Dollar, and euro, but gaining against the Australian dollar and British Pound.

China's Economy Isn't Bad, It's the Meddlers!

Journalist Wang Xiaolu, who writes for a respected business magazine in China, has shown to have "confessed" to causing a market drop on Chinese state media.

In the confession, Xiaolu claims that he obtained information on China's markets through private sources, which he then added his own "subjective judgment". Last month, Xiaolu wrote several articles about the China Securities and Regulatory Commission's (CSRC) market intervention. The Commission has stated this as "irresponsible", and "spreading misinformation."

During trading, the Shanghai Composite lost as much as 3% today after an article by The Financial Times claimed that Beijing stop intervening in the market. The government will switch its focus from market intervention to "stopping market destabilizers."

Tuesday's Financial Outlook

US economic data for tomorrow will include Markit manufacturing PMI, construction spending, IBD/TIPP economic optimism, ISM manufacturing and prices paid, and Wards vehicle sales.

Overseas economic data will feature the Bank of Autralia's rate decision & GDP, the euro-zone & German employment report, and Canadian GDP.

Dollar Tree (DLTR), QIWI (QIWI), and Science Applications (SAIC) will release their earnings reports before the open. Qihoo 360 Tech (QIHU) will announce its earnings after the close.
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