Investing.com - Here are the top five things you need to know in financial markets on Thursday, March 24:
1. Global stocks fall amid Fed rate hike chatter
European stocks were under pressure Thursday, amid speculation over a potential U.S. rate hike as soon as next month and as security concerns following this week’s Brussels terrorist attacks persisted.
Meanwhile, U.S. stock futures pointed to a lower open, as market players awaited data due later in the session that could back some Federal Reserve officials' relatively optimistic views on the U.S. economy.
Earlier, markets in Asia closed mostly lower following losses in U.S. equities overnight amid fresh declines in oil prices and concerns over a potential Fed hike in April.
2. U.S. data in focus
The U.S. is to produce data on February durable goods orders at 12:30GMT, or 8:30AM ET, on Thursday. The report is expected to show that orders for durable goods slumped 2.8% last month, following a gain of 4.7% in January, while core orders are forecast to inch down 0.2% after rising 1.7% a month earlier.
The weekly report on initial jobless claims is also due at 8:30AM ET, followed by the Markit Services PMI at 9:45AM ET.
Upbeat readings would help support the case for the Fed to steadily tighten monetary policy.
3. Hawkish Fed talk fuels dollar gains
The dollar climbed for a fifth consecutive day against a basket of major currencies on Thursday, putting it on track for its best run of gains in almost a year, as investors moved to price in the possibility of two U.S. rate hikes this year.
St Louis Fed President James Bullard was just the latest Federal Reserve official to suggest that a rate hike could come as soon as next month, following similarly hawkish comments from other U.S. policymakers earlier in the week.
The market will be paying attention to more comments by St. Louis Fed President James Bullard later in the day to further judge the balance of opinion among policymakers on the prospect of further rate hikes. Bullard is due to speak about the U.S. economy and monetary policy at the Association for Business Economics, in New York at 12:15GMT, or 8:15AM ET.
4. Oil prices sink to 1-week lows as glut concerns remain
Oil prices extended losses from the prior session on Thursday, with the U.S. benchmark slumping to a one-week low after data showed that domestic oil supplies rose to an all-time high last week, underlining concerns over a supply glut.
U.S. crude was down 77 cents, or 1.94%, to $39.02, by 10:00GMT, or 6:00AM ET, while Brent shed 74 cents, or 1.83%, at $39.73 a barrel.
5. Gold tumbles to 4-week low on April rate hike fears
Gold futures tumbled to a four-week low on Thursday as investors digested hawkish comments from Federal Reserve officials on the timing of the next U.S. rate hike.
Gold prices lost $7.00, or 0.57%, to trade at $1,217.00 a troy ounce, the lowest level since February 23.