Investing.com - Here are the top five things you need to know in financial markets on Tuesday, August 9:
1. Global stocks push higher with oil in focus
U.S. stock index futures pointed to a marginally higher open on Tuesday morning, as investors looked ahead to a fresh batch of corporate earnings reports and U.S. economic data, while keeping an eye on oil prices.
Meanwhile, European stocks were up in mid-morning trade Tuesday, with gains in telecommunication and oil shares helping keep the region’s benchmark hovering around a two-week high.
Earlier, Asian shares closed higher, lifted by an overnight surge in global oil prices.
2. Oil pauses for breath after Monday's rally
Oil prices struggled for direction on Tuesday, pausing for breath after rising sharply in the prior session amid renewed hopes for an agreement among OPEC producers to freeze output.
U.S. crude was down 4 cents, or 0.1%, to $42.98 a barrel during morning hours in New York, while Brent dipped 11 cents, or 0.24%, to $45.28 a barrel.
Oil futures spiked 3% on Monday as fresh hopes for an agreement among exporters to freeze production underpinned the market.
3. Sterling, Gilt yields slide on BoE stimulus message
Writing in an opinion piece for the Times on Tuesday, Bank of England policymaker Ian McCafferty said more quantitative easing was likely to be required if the U.K.'s economic decline worsens.
The pound dropped to 1.2968, a level not seen since July 11 in wake of the dovish comments. It was last at 1.2978, down almost 0.5% on the day.
Meanwhile, the yield on the U.K. 10-year Gilt hit a record low of 0.592% before pulling back to 0.605%.
4. China inflation slows again
The National Bureau of Statistics reported earlier that China’s consumer price index rose 1.8% in July from a year earlier, in line with forecasts and slowing from 1.9% in the preceding month.
The producer price index fell 1.7% on a year-over-year basis, compared to a decline of 2.6% in June, the agency said.
The soft figures confirmed there was scope for further policy easing if needed.
5. EU cancels budget fines for Spain, Portugal
European Union states agreed to cancel budget fines for Spain and Portugal and to set new deadlines for them to rein in their excess deficits, their representative body in Brussels said on Tuesday.
The EU Council said in a statement that Spain would have two more years, until 2018, to bring the deficit below 3%. Portugal would have one more year, to 2016, to reduce its deficit to 2.5%.
Spanish 10-year bond yields fell below 1% for the first time on record and was last at 0.983%, while the yield on Portugal's 10-year bond dropped to 2.803%.