By Geoffrey Smith

Investing.com -- OPEC and its allies plot a big cut in oil output in defiance of U.S. President Joe Biden. ADP releases its estimate for private-sector hiring, a day after the Labor Department's Job Openings survey showed a sharp drop in vacancies. U.K. Prime Minister Liz Truss will try to restore some clarity over the direction of her policies. And the aftershocks of Elon Musk's surrender to Twitter reverberate through U.S. stock markets. Here's what you need to know in financial markets on Wednesday, 5th October.

1. OPEC+ set to cut production quotas sharply

The world’s biggest oil exporters are set to agree on a hefty output cut from November at a meeting in Vienna.

Newswire reports suggest that the Organization of Petroleum Exporting Countries and its allies (chiefly Russia) will cut their output quota by as much as 2 million barrels a day in order to shore up falling prices, with some reports also hinting at further unilateral action by Saudi Arabia.

Any cut will be a major frustration for the administration of U.S. President Joe Biden, who has released millions of barrels from the Strategic Petroleum Reserve to bring domestic gasoline prices down before November’s mid-term elections.

Crude oil prices hit a three-week high on Tuesday as details of the members’ negotiating positions leaked out (and as U.S. inventory data surprised to the downside) but they have steadied overnight with U.S. crude trading down 0.1% at $86.41 a barrel, while Brent crude is down 0.1% at $91.73 a barrel.

2. Twitter stock doesn't quite believe the Musk takeover yet

Elon Musk is licking his wounds and Carl Icahn is counting his profits after Musk agreed to go through with his bid for Twitter (NYSE:TWTR) at the original price of $54.20, after trying to walk away from the deal during the summer.

Musk’s change of heart on Tuesday came only days before he was due to be deposed in connection with Twitter’s lawsuit in Delaware. However, the market is still not pricing the takeover as a done deal: Twitter stock fell 0.6% in premarket to $51.76, nearly 5% below Musk’s bid price.

The latest developments set the stage for what promises to be an interesting spectacle of a leveraged buyout carried out with prevailing interest rates at their highest level in over a decade. That will leave the barely-profitable social media company with an interest bill that will make Musk’s valuation even more challenging than it was originally.

3. ADP report to add color to labor market picture

ADP will release its estimate of private-sector hiring in the U.S. in the month through mid-September, a day after the Labor Department announced one of the biggest ever monthly drops in job openings across the country.