Investing.com - Here are the top five things you need to know today in financial markets:
1. U.S. oil prices rise to 1-week high
U.S. oil prices rose to a one-week high on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell last week.
U.S. crude was last up 36 cents, or 1.01%, to $36.50 a barrel as of 6:11AM ET, after rallying 0.92% on Tuesday.
London-traded Brent was last up 40 cents, or 1.11%, to $36.51 a barrel. A day earlier, prices fell to $35.98, a level not seen since July 2004.
Brent's premium over the WTI crude contract stood at 1 cent, compared to a discount of 3 cents by close of trade on Tuesday.
U.S. crude has been firmer relative to Brent recently, on signs that the U.S. oil market is likely to grow tighter following Congress' decision to lift a 40-year old ban on domestic oil exports, while a global glut gets worse in 2016 due to soaring production in Saudi Arabia and Russia.
2. U.S. durable goods data due ahead of the bell
The U.S. is to produce data on durable goods orders at 8:30AM ET on Wednesday, amid expectations for a decline of 0.6% in November, while core orders are forecast to rise 0.1%. In addition, the U.S. is release reports on new home sales and consumer sentiment.
Earlier in the day, data showed that U.S. personal spending inched up 0.3% last month, meeting forecasts. The figure, which was to be made public at 8:30AM ET Wednesday along with the agency’s report on personal income, was released early on the Bureau of Economic Analysis’ website.
3. Global stocks extend rally as oil prices tick higher
Global stock markets extended a rally into a third day on Wednesday, as oil prices edged higher and as market players begin to wind down trading activity before the Christmas holiday.
European shares rose on the last full trading day before the Christmas break, following Asian bourses higher. Meanwhile, U.S. stock futures were up 0.2%, suggesting a stronger open on Wall Street later in the day. U.S. markets close early Thursday, Christmas Eve, and are shut Friday for Christmas Day.
4. U.S. dollar drifts higher
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% at 98.41 during European morning hours.
Trading volumes are expected to remain light as many traders already closed books before the end of the year, reducing liquidity in the market and increasing volatility.
5. U.K. third quarter GDP revised down to 0.4%
The U.K.’s Office for National Statistics said the economy expanded 0.4% in the three months ended September 30. Preliminary estimates initially pegged U.K. growth at 0.5%. Year-over-year, U.K. economic growth expanded 2.1% in the third quarter, downwardly revised from a preliminary estimate of 2.3%.
The disappointing data dampened optimism over the health of the economy and dimmed the case for higher interest rates.