Oil Prices Drive Market Volatility: Global Wrap

US equity futures fell and Treasury yields rose as OPEC+ surprised markets with a production cut of over 1 million barrels a day, sending oil prices up by about 6%. The dollar strengthened against most Group-of-10 currencies, while the Norwegian krone gained as the Scandinavian country stands to benefit from higher energy prices. The policy-sensitive two-year Treasury yield jumped around five basis points to 4.08%. The OPEC+ cut, combined with increased energy demand from China, will raise the danger of more persistent inflation, said Lazard’s Ronald Temple.