Global stocks give up some gains after solid start to year

Global stocks give up some gains after solid start to year

Oil prices extended their rally to a ninth consecutive day.

Futures in NY have advanced 10 percent this week, as Saudi Arabia pledged that a producer coalition it's leading will keep the market in balance.

Gold edged higher for a fourth straight week of gains on bets the Fed could soon stop raising interest rates, which boost the appeal of the non-yielding metal. That signals investors need reassurance that the group will curb supply sufficiently and demand will hold up.

Saudi Arabia's energy minister said on Wednesday he was confident that supply cuts started in late 2018 by the Organisation of the Petroleum Exporting Countries (OPEC) and some allies, including Russian Federation, aimed at reining in oversupply would bring the oil market into balance.

The U.S. stock market was supported by advances by technology and other trade-sensitive sectors.

US bank Morgan Stanley cut its 2019 oil price forecasts by more than 10 percent on Wednesday, pointing to weakening economic growth expectations and rising oil supply.

Oil prices continued to rise during the week ending January 11, with the price of West Texas Intermediate (WTI) for February delivery increasing by 7.6 percent and Brent crude for March delivery increasing by 6.0 percent.

Gold prices rose on Wednesday, with spot gold XAU= rising 0.49 percent to $1,291.2 per ounce. Crude futures were backed as energy stocks were traded broadly higher on the day. WTI and Brent are set for their second week of gains, rising almost 11% and 9%, respectively.

Another positive sign for a bullish movement is Russian Federation, which frequently voiced its reluctance to go along with the Organization of the Petroleum Exporting Countries (OPEC) plan to slash crude output: Alexander Novak, energy minister for the former Soviet Union, on Friday disclosed that preliminary data shows the nation's output has already fallen by more than 30,000 bpd relative to October levels: "The companies have said they can decrease total production by 50,000 barrels per day in January".

Energy Minister Al-Falih said in Riyadh on Wednesday that the 1.2-million-barrel-a-day cut promised by the coalition will be more than sufficient to balance the market.

Wall Street ended little changed on Friday, taking a breather following a five-day winning streak, while the dollar rebounded against most currencies from earlier losses tied to expectations the us central bank is in no hurry to raise interest rates. -China talks has lifted investor sentiment, global financial markets are still struggling to decipher what exactly may have been promised in their negotiations this week. China's Ministry of Commerce said there were "detailed exchanges" and both sides would "maintain close contact", without offering specifics.

Federal Reserve Chairman Jerome Powell was interviewed at the Economic Club of Washington DC. He echoed the tone of Fed officials who were present at a meeting last month. All comments are subject to editorial review.