* Oil company shares add to gains after OPEC deal
* Wall St ticks lower, but energy shares up
* Crude rises after earlier slip
(Updates with U.S. markets, changes dateline from previous
By Rodrigo Campos
NEW YORK, Sept 29 Energy shares buoyed global
stocks on Thursday as crude prices added to the previous
session's gains on optimism over a plan among OPEC members to
The expected agreement lifted the currencies of
crude-producing countries like Norway and Canada overnight while
the safe-haven Japanese yen dropped almost 1 percent versus the
U.S. dollar on Thursday, weighed further by strong U.S. economic
Crude prices wobbled initially after Wednesday's near 6
percent surge as investors questioned whether OPEC's first deal
to limit output since 2008 would balance the oversupplied oil
Stocks on Wall Street traded lower, with utilities, often
sold when Treasury yields rise, as the worst performer.
Healthcare and tech stocks were the largest weights.
"The markets are taking a step back after a couple of pretty
good days," said Paul Nolte, portfolio manager at Kingsview
Asset Management in Chicago.
The Dow Jones industrial average fell 37.39 points,
or 0.2 percent, to 18,301.85, the S&P 500 lost 4.47
points, or 0.21 percent, to 2,166.9 and the Nasdaq Composite
dropped 22.87 points, or 0.43 percent, to 5,295.68.
The energy index of the S&P 500 rose 0.5 percent.
The European oil and gas index soared 4.4 percent in
its best day in three months, but the pan-European STOXX 600
index closed flat.
The pan-European FTSEurofirst 300 index ended up
0.1 percent, while MSCI's gauge of stocks across the globe
rose 0.2 percent.
In Russia, a major oil producer, the dollar-denominated RTS
share index rose 2.3 percent.
Oil companies, along with the weaker yen, also lifted Tokyo
shares, which closed 1.4 percent higher. Nikkei futures
rose 0.6 percent.
The Organization of the Petroleum Exporting Countries agreed
to cut output to a range of 32.5 million-33.0 million barrels
per day from the group's current estimated output of 33.24
million bpd, ministers at the talks in Algiers said.
U.S. crude was up 1.9 percent at $47.95 a barrel and
Brent last traded at $49.40, up 1.5 percent on the day.
While the deal helped lift currencies of oil exporters on
Wednesday, including the Norwegian crown and the Canadian
dollar, those currencies were little changed on Thursday, partly
on concerns over the feasibility of OPEC implementing the deal.
"There is reason to think that being skeptical about OPEC
production quotas is a reasonable approach," said David Gilmore,
partner at FX Analytics in Essex, Connecticut.
U.S. economic growth was less sluggish than previously
thought in the second quarter as exports grew more than imports
and businesses raised their investments, while other data showed
America's trade deficit for goods shrank in August, boding well
for third-quarter growth.
The Japanese yen, often sought when investor risk
appetite is low, was last down 0.8 percent at 101.48 per dollar,
having fallen as low as 101.84.
U.S. Treasury yields inched higher as traders sought riskier
assets. Benchmark 10-year notes fell 5/32 in price
to yield 1.5823 percent, up from 1.567 percent on Wednesday.
However, U.S. yields remain trapped in tight ranges and
could resume their recent downtrend given geopolitical tensions
and political uncertainty, analysts said.
"I wouldn't get caught up in the short-term moves in the
Treasury market," said Mike Materasso, co-chair of Franklin
Templeton's fixed income policy committee in New York. "The
oscillations of five to 10 basis points are not that significant
because if you look at the 10-year chart over the last three
months, we're still trading in a narrow range."
Spot gold prices fell $3.36 or 0.3 percent, to
$1,317.87 an ounce.
(Additional reporting by Gertrude Chavez-Dreyfuss and Sam
Forgione in New York, Jemima Kelly, Dhara Ranasinghe, Sujata
Rao, Kit Rees and Swetha Gopinath in London; Editing by Meredith