Investing.com - Here are the top five things you need to know in financial markets on Thursday, October 5:
1. U.S. Data, Fed officials in focus
Market participants were looking ahead to the latest reports on U.S. initial jobless claims and trade balance, which were scheduled to be released at 8:30 a.m. ET (12:30 GMT), while the latest U.S. factory orders data was expected at 10:00 a.m. ET (14:00 GMT).
Federal Reserve Governor Jerome Powell, New York Fed President William Dudley, Dallas Fed chief Robert Kaplan and Philadelphia Fed President Patrick Harker were also scheduled to speak later Thursday.
Jerome Powell has been in the spotlight recently, as he and former governor Kevin Warsh were both interviewed at the White House last week to replace current Fed Chair Janet Yellen next February.
The two men are seen as serious candidates, but Powell is considered as more dovish than Warsh, who has criticised the Fed's bond-buying programme in the past.
The dollar steadied ahead of the day's events, but remained supported by the previous session's upbeat U.S. service sector activity and jobs data.
2. Spanish Stocks Rebound Despite Ongoing Political Woes
Spanish stocks bounced higher on Thursday, recovering from sharp losses posted earlier in the week after Catalans voted for independence in a contested referendum on Sunday that ended in violence.
The regional government of Catalonia announced on Wednesday that they will declare independence from Spain on Monday, adding to tensions in the region.
Spain's King Felipe VI accused Catalan secessionist leaders of shattering democratic principles and dividing Catalan society.
Spain's IBEX index of the country's 35 biggest stocks opened lower before recovering later in the morning, bouncing off a seven-month low.
3. Oil Stabilizes on Hopes of Extended OPEC Output Cuts
Crude oil prices bounced off two-week lows on Thursday after Russian President Vladimir Putin said that a pledge by OPEC and other producers, including Russia, to cut oil output to boost prices could be extended to the end of 2018, instead of expiring in March 2018.
U.S. crude prices were initially boosted after the U.S. Energy Information Administration reported on Wednesday a 6.023 million barrel decline in crude oil inventories last week. However, traders were disappointed to learn that U.S. crude oil exports jumped to a new record 1.98 million bpd.
U.S. West Texas Intermediate crude futures gained 24 cents or about 0.48% to $50.22 a barrel, off a two-week low of $49.88 hit overnight.
Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., were up 44 cents or about 0.79% at $56.24 a barrel, off the previous session's two-week lows of $55.39.
4. Google Unveils New Products
Google hosted an event in California on Wednesday where it unveiled a number of new products, including the new Google Pixel 2 smartphones, Google Home Mini and the Google Home Max speaker.
The group's parent company Alphabet (NASDAQ:GOOGL) saw shares close lower following the launch on Wednesday, but they were already clawing their way back higher in Thursday's pre-market trade.
5. Optimism Dominates Global Stock Markets
Asian-Pacific equities closed steady to higher on Thursday, with several major markets in the region still shut for local holidays.
Japan's Nikkei remained within striking distance of the previous session's more than two-year peak. Australia's S&P/ASX 200 closed little changed, near a recent eight-month trough, after the release of mixed economic reports on retail sales and the country's trade balance.
Meanwhile, European shares were mostly higher in mid-morning trade, as markets shrugged off political turmoil in Spain and after Germany's DAX closed Wednesday's session at a new record high.
On Wall Street, U.S. stocks pointed to a moderately higher open, following another record close for all three majors indices on Wednesday, as optimism over the outlook for the U.S. economy continues to boost investors' confidence.