Investing.com - Here are the top five things you need to know in financial markets on Thursday, January 21:
1. Oil prices fall again ahead of weekly supply report
Oil prices were on the defensive again on Thursday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a faster pace than expected last week.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 16:00GMT, or 11:00AM ET, Thursday.
U.S. crude was down 33 cents, or 1.15%, to trade at $28.02 by 11:20GMT, or 6:20AM ET, while, Brent fell 24 cents, or 0.88%, to $27.64.
2. Asia stock markets take another tumble
Asian equity markets fell sharply overnight, as intensifying global growth concerns, mounting uncertainty in China and ongoing weakness in oil prices weighed.
Japan’s Nikkei 225 plunged 2.4%, while the Shanghai Composite Index finished down 3.2%, both falling further into bear market territory.
3. European shares inch up ahead of ECB
European stock markets inched up in choppy trade on Thursday, as investors awaited the European Central Bank’s upcoming policy statement amid ongoing concerns over the oil rout.
Germany’s DAX 30 tacked on 0.5%, France’s CAC 40 rose 0.4%, while London’s FTSE 100 advanced 0.25%.
The ECB's latest interest rate decision is due at 12:45GMT, or 7:45AM ET, with most of the focus likely to be on President Mario Draghi's press conference 45 minutes after the announcement.
The consensus is that the central bank will make no changes to interest rates, while providing a dovish statement with a clear recognition that more action is possible at some point in the future.
4. Wall Street points to more losses
U.S. stock markets pointed to more losses at the open on Thursday, as concerns surrounding global growth and weak oil prices continued to grip markets.
The blue-chip Dow futures fell 99 points, or 0.63%, the S&P 500 futures slumped 10 points, or 0.54%, while the Nasdaq 100 futures dropped 23 points, or 0.55%. U.S. markets closed at levels not seen since 2014 on Wednesday.
In earnings news, Verizon Communications Inc (N:VZ), Southwest Airlines Company (N:LUV), United Continental Holdings Inc (N:UAL) and The Travelers Companies Inc (N:TRV) are due to report quarterly earnings ahead of Thursday’s opening bell.
After the market closes, American Express (N:AXP), Starbucks (O:SBUX) and Intuitive Surgical (O:ISRG) are on the earnings docket.
On the data front, the U.S. is to publish reports on manufacturing activity in the Philadelphia region and the weekly report on initial jobless claims at 8:30AM ET.
5. Russian rouble’s dramatic plunge continues
Russia's rouble extended losses on Thursday, plunging by more than 5% to hit an all-time low of 85.92 against the dollar (USD/RUB), as oil prices slid and global markets fell again.
On Wednesday, Russia's central bank governor Elvira Nabiullina said she did not intend to intervene to support the currency, which she described as close to its "fundamental levels."
Russia depends on sales of oil and gas for the majority of its budgetary revenue and the collapse of the oil market has clouded the outlook for the crisis hit economy.