Markets mixed, oil surges after deal on output cut

Markets were mixed on Wednesday.

The S&P 500 fell 0.3 percent, the STOXX Europe 600 rose 0.3 percent and the Nikkei 225 was flat.

Crude oil surged after the Organization of the Petroleum Exporting Countries agreed to cut production levels. West Texas Intermediate crude jumped 9.3 percent while Brent rose 8.8 percent.

Michael Matousek, head trader at US Global Investors Inc., said: “The deal is taking people by surprise, so they’re desperately buying futures now.”

However, Stuart Samuels, a London-based sales trader at Oppenheimer Europe, said that while oil had driven pushed European stocks up on Wednesday, “I’d be inclined to take some profits” with Sunday’s Italian referendum on constitutional reform looming.