US open: Stocks rise as investors eye Fed's interest rate decision

US stocks rose on Monday as oil prices gained and investors looked ahead to the Federal Reserve’s interest rate decision later in the week.

At 1533 BST the Dow Jones Industrial Average increased 0.58% to 18,231.25 points, the S&P 500 grew 0.58% to 2,151.52 points and the Nadsaq edged up 0.51% to 5,271.27 points.

At the same time oil prices were on the front after Venezuela said OPEC and non-OPEC countries were nearing a deal to stabilise output.

According to press reports, Venezuelan President Nicolas Maduro said at a news conference: “We had a long bilateral meeting with [Iran’s president Hassan] Rouhani. We’re close to a deal between OPEC producer countries and non-OPEC.”

In addition, news that a military conflict in Libya over the weekend had affected its exports also helped to underpin prices.

West Texas Intermediate crude jumped 2.4% to $44.10 per barrel and Brent advanced 2.1% to $46.76 per barrel.

Meanwhile, traders are awaiting Wednesday’s policy decision from the Federal Reserve, although the central bank is widely expected to keep interest rates unchanged. The Bank of Japan is also set to make its policy announcement on Wednesday.

“The respective decisions from the BoJ and FOMC will no doubt shape the look and feel of markets for weeks to come, yet realistically it is just the Japanese who stand any chance of raising rates on Wednesday,” said IG market analyst Joshua Mahony.

“Despite differing expectations, it makes sense that the BoJ will avoid anything too drastic with existing monetary stimulus leaving little room for manoeuvre.”

On the economic data front, a report showed sentiment among US homebuilders in September improved to its highest level since October last year. The National Association of Home Builders/Wells Fargo housing market index pushed up to 65 from 59 the month before, comfortably beating expectations for a reading of 60. This marked an 11-month high.

In company news, US-listed shares of French drug company Sanofi rose as it filed a lawsuit against rival Merck & Co.’s international unit for alleged patent infringement.

Infoblox rallied on news that private-equity firm Vista Equity Partners plans to buy the network security company for $1.6bn.

Sarepta Therapeutics surged after the Food and Drug Administration approved its Duchenne muscular dystrophy drug.

Ann Taylor and Justice parent Ascena Retail Group Inc are among the companies slated to report quarterly earnings after the close.