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Oil prices jump as European stocks stumble

OPEC's 14 members produce a third of the world's oil and recently agreed to their first output cut since 2008

Oil prices rose Thursday, building on a surge triggered by OPEC's output-cutting deal, while European stock markets retreated as attention switched to worries over Italy's weekend referendum. Stocks were mixed in the US, with the Dow surging to a fresh record, and the Nasdaq falling sharply due to weakness in technology names. Brent crude prices gained 4 percent Thursday, after soaring almost 10 percent Wednesday on news that OPEC had hammered out a deal to cut oil output for the first time in eight years. "Oil adding to Wednesday’s large gains tells you the market got what it wanted," CMC Markets analyst Jasper Lawler said. But European investors were on edge ahead of an Italian constitutional referendum Sunday that is expected to go against the government of Prime Minister Matteo Renzi, who could resign with a defeat. While the risk of a Eurosceptic party gaining power in Italy is "low," a change in government "could foster uncertainly and volatility in markets, regardless of how smooth the transition may be," the Eurasia Group said in a note. "The banking system is likely to prove the weak link in the event of market turmoil as political uncertainty complicates ongoing plans by several banks to raise capital." London's benchmark FTSE 100 index ended the day down 0.5 percent, while the DAX 30 in Frankfurt fell 1.0 percent and the CAC 40 in Paris shed 0.4 percent. - Nasdaq slumps - In the US, Dow jumped 0.4 percent to 19,191.93 almost 40 points above than the previous record set November 25. But the Nasdaq dropped 1.4 percent as the technology sell-off accelerated, with Facebook slumping 2.8 percent, Intel 2.7 percent and Tesla Motors 4 percent. Technology shares have been volatile since the US presidential election, with some analysts fearing protectionist measures by President-elect Donald Trump could harm the industry. Analysts also consider low or no-dividend stocks to be more vulnerable than blue chip companies to higher interest rates, which can boost the value of bonds. Most technology stocks do not pay dividends. The yield on the 10-year bond rose sharply on Thursday. Focus now turns to the release Friday of key US jobs data for November. With dealers certain the Federal Reserve will hike interest rates this month, the figures could provide some insight into its plans for future increases over the next year. Asian stock markets, playing catch up with Wednesday's reaction on European and US indices, closed higher Thursday. Adding to the buying sentiment was a better-than expected reading on Chinese factory output that provided fresh hope the world's number two economy was stabilizing after years of slowing growth.' In Tokyo, the Nikkei rose 1.1 percent, its best close this year, as energy companies soared. Japanese energy explorer Inpex jump 10 percent and Japan Petroleum rocketed 12.20 percent. - Key figures around 2200 GMT - New York - Dow: UP 0.4 percent at 19,191.93 (close) New York - S&P 500: DOWN 0.4 percent at 2,191.08 (close) New York - Nasdaq: DOWN 1.4 percent at 5,251.11 (close) London - FTSE 100: DOWN 0.5 percent at 6,752.93 (close) Frankfurt - DAX 30: DOWN 1.0 percent at 10,534.05 (close) Paris - CAC 40: DOWN 0.4 percent at 4,560.61 (close) EURO STOXX 50: DOWN 0.8 percent at 3,026.20 Tokyo - Nikkei 225: UP 1.1 percent at 18,513.12 (close) Hong Kong - Hang Seng: UP 0.4 percent at 22,878.23 (close) Shanghai - Composite: UP 0.7 percent at 3,273.31 (close) Euro/dollar: UP at $1.0661 from $1.0590 Wednesday Dollar/yen: DOWN at 114.11 yen from 114.49 yen Pound/dollar: UP at $1.2591 from $1.2507 Oil - Brent North Sea: UP $2.10 at $53.94 per barrel Oil - West Texas Intermediate: UP $1.62 at $51.06 per barrel