While you were sleeping: UPDATED Oil boosts stocks as Russia backs cap

Oil producers outside OPEC could co-operate on output caps.

Equities on both sides of the Atlantic rose with the price of oil after Russia signalled it will join an agreement to curb output.

Many oil producers outside OPEC expressed a willingness to co-operate on output caps, Saudi Arabia's Energy and Industry Minister Khalid Al-Falih told an energy congress in Istanbul.

He added that he was "optimistic" there would be a deal that could lift prices to as high as $US60 by year-end.

"Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join," Russian President Vladimir Putin says, according to Reuters.

Oil prices rallied, with Brent touching $US53.73 a barrel, the highest level in a year, in London.

"Mr Putin coming out to say Russia will be part of the initiative has added another layer of credence to the speculation there will be a co-ordinated cut," John Kilduff, partner at New York energy hedge fund Again Capital, told Reuters.

"At some point, the market will call them on it and say 'show us the cuts'. And at that point, the Saudis might be willing to underwrite the cuts on their own because they really want these high prices. To me, $US55 Brent is without doubt the next target."

Dow rises 88 points
Wall Street and energy stocks followed suit. The Dow Jones Industrial Average rose 88.55 points, or 0.5%, to 18329.04. The Nasdaq Composite Index climbed 0.7% to 5328.67 and the Standard & Poor's 500 Index rose 0.5% to 2163.66.

The Dow advanced as Apple, Exxon Mobil and Chevron shares gained, up 2.1%, 2.0% and 1.7% respectively, outweighed slides in Wal-Mart and Procter & Gamble shares, down 1.2% and 1% respectively.

A perception that Democratic US Presidential candidate Hillary Clinton won the second debate against Republican candidate Donald Trump, securing her chances of a win, helped underpin the mood on financial markets.

Investors are gearing up for a fresh round of US quarterly earnings, with Alcoa set to report on Tuesday.

Meanwhile, Twitter shares sank 14% amid reports that it has failed to attract any potential bidders.

In corporate activity, shares of Mylan rose 8.2% after the pharmaceuticals firm agreed to pay $US465 million to settle allegations that it overcharged the government for its EpiPen products.

In Europe, the Stoxx 600 Index finished with a gain of 0.7%, bolstered by advances in energy stocks. The UK's FTSE 100 Index increased 0.8%, France's CAC 40 Index rose 1.1%, while Germany's DAX Index added 1.3%.

"Russia's comments on supporting an OPEC deal are creating positive sentiment," Geneva-based Lombard Odier chief economist Samy Chaar told Bloomberg.

(BusinessDesk)

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