Oil prices, oil stocks ...
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Central banks have raised interest rates rapidly in the past year in an effort to bring rampant inflation under control.
The oil producers' move spread through stock markets. Oil majors BP, Shell, TotalEnergies and Eni all rose over 4%, sending the European Oil & Gas index up 3.9%, set for its biggest one-day gain since November.
Energy-sensitive stocks dropped, including airlines like British Airways parent IAG and low cost carrier Wizz Air while tech shares, which struggle in a higher rate environment, also lost some ground, as markets saw higher oil prices leading to sticker inflation, and, in turn higher-for-longer interest rates.
Britain's commodities-heavy FTSE 100 rose 0.7%. On a regional and global basis the various moves cancelled each other out with the European STOXX 600 and MSCI's 47-country all world index trading a whisker above flat.
The surge in energy costs somewhat overshadowed Friday's slower reading for core U.S. inflation, which had seen Wall Street end the month on a strong note.
S&P 500 futures slipped 0.1% on Monday, while Nasdaq futures lost 0.6%. MSCI's broadest index of Asia Pacific shares outside Japan was flat.
OPEC+'s move also played out in currency and rate markets at least first thing, as, said ING FX strategist Francesco Pesole, it had "fueled fears that inflation will prove to be a longer-lasting problem for central banks."
"The ultra-volatile market pricing for the Fed’s rate path is once again set to be one of the most impacted," he added.
The yield on U.S. two-year Treasuries rose as much as 7.7 basis points before dropping back to trade a touch higher on the day at 4.0895%, while Fed fund futures pared back expectations for rate cuts later in the year.
The market nudged up the probability of the Federal Reserve hiking rates by a quarter point in May, with around a 60% chance according to the CME's Fedwatch tool, up from a probability of 48% on Friday.
That in turn helped the dollar gain as much as 0.7% on the Japanese yen, before falling back to trade flat at 132.98. The rise in oil prices is bad news for Japan's trade balance given it imports most of its energy, while the yen typically underperforms when U.S. rates are rising.
The euro initially lost ground, but was last up 0.3% at $1.0874.
The outlook for U.S. rates could be impacted by data on ISM manufacturing and several pieces of employment data out this week, most significantly Friday's non-farm payrolls report. The impact of that report could be muted by the Easter holidays.