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Top 5 Things to Know In the Market on Wednesday

Published 02/17/2016, 06:26 AM
© Reuters.  Top 5 Things to Know Today In Financial Markets
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Investing.com - Here are the top five things you need to know in financial markets on Wednesday, February 17:

1. Oil prices jump ahead of OPEC talks with Iran

Qatar’s Energy Minister and current OPEC President Mohammed al-Sada, along with Venezuelan Oil Minister Eulogio Del Pino and Iraqi Oil Minister Adel Abdel Mahdi, traveled to Tehran for talks with their Iranian counterpart Bijan Zanganeh in a bid to reach a deal to restrain output and prop up sagging prices.

The meeting was scheduled to start at 10:30GMT, or 5:30AM ET.

Top oil producers Russia and Saudi Arabia on Tuesday agreed to freeze oil production at January levels, provided other oil exporters joined in, but stopped short of agreeing cuts in oil output.

Iran signaled that it would take a tough line in talks among oil producers on a production freeze, saying it would continue increasing its output until it reached levels seen before international sanctions were imposed.

U.S. crude was up 61 cents, or 2.08%, at $29.65 a barrel, by 11:25GMT, or 6:25AM ET, while Brent rose 75 cents, or 2.32%, to $32.93.

2. Investors await FOMC minutes, U.S. data

Investors will be focusing on minutes of the Federal Reserve’s January policy meeting due on Wednesday at 19:00GMT, or 2:00PM ET, for fresh indications on whether the U.S. central bank will raise interest rates at all this year.

The Fed left interest rates unchanged following its meeting on January 27 and said it was "closely monitoring" global economic and financial developments.

Fed Chair Janet Yellen said last week that financial conditions have become less supportive to growth as foreign developments pose risks to the economic outlook, but also maintained that moderate growth at home would justify "gradual adjustments" to the Fed's monetary policy stance.

Aside from the minutes, the U.S. will release data on producer prices, housing starts and building permits at 13:30GMT, or 8:30AM ET, followed by a report on industrial production at 14:15GMT, or 9:15AM ET.

3. Global stocks mostly higher as oil advances

In Asia, the Shanghai Composite Index rose 1.1%, while markets in Japan and Australia closed down after a choppy trading session, despite a positive finish in Wall Street overnight.

Meanwhile, European stocks pushed higher Wednesday, with the region’s blue-chip benchmark guided by gains within the embattled commodities and banking sectors.

Across the Atlantic, Wall Street pointed to a higher open, with the Dow futures climbing 100 points, as investors look towards the Federal Reserve minutes for its January meeting and oil rebounded.

4. U.K wage growth slows to 10-month low

Wage growth in the U.K. slowed to a 10-month low in the final three months of 2015, official data showed on Wednesday, underscoring the view that the Bank of England will keep interest rates at a record low for some time yet.

Total annual wage growth slowed as expected to 1.9%, its lowest since February, from 2.1% in the three months to November, the Office for National Statistics said.

The unemployment rate held steady at 5.1% in the final quarter of 2015, matching the three months to November which was the lowest since mid-2005.

5. Strong performance for European miners

Glencore (L:GLEN) shares soared 10% in London after the commodities giant said it would carry out an early refinancing of an $8.45 billion loan facility. The early refinancing means the Switzerland-based commodities trader and miner will have no refinancing commitments until May 2018.

Meanwhile, Anglo American (L:AAL) saw shares rally 9% in London after Credit Suisse (VX:CSGN) raised its price target on the platinum and copper producer, citing aggressive cost-cutting targets. On Tuesday, the miner outlined plans to ramp up asset sales as it posted a wider net loss for 2015.

However, Fitch Ratings cut Anglo American's credit assessment to junk on Wednesday, warning about "the high level of uncertainty regarding the ultimate success of the group’s restructuring plan.”

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