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Top 5 Things to Know Today

Published 12/08/2015, 06:05 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 today in financial markets:

1. Oil prices regain some ground but hold near 7-year lows

Oil prices inched up on Tuesday, one day after tumbling to the lowest level since February 2009 amid ongoing concerns over a global supply glut.

U.S. crude was last up 22 cents, or 0.57%, at $37.87 a barrel, while Brent tacked on 42 cents, or 1.03%, to $41.15.

The Organization of the Petroleum Exporting Countries last week failed to agree on output targets to reduce an oil glut that has cut prices by more than 60% since June 2014. As a result, crude prices are expected to remain stubbornly low amid a glut of oversupply on global energy markets.

2. China trade data disappoints

The latest trade figures out of China released earlier added to concerns over the health of the world's second largest economy.

Exports slumped 6.8% from a year earlier in November, worse than forecasts for a decline of 5.0%, while imports dropped 8.7%, compared to expectations for a tumble of 12.6%. That left China with a surplus of $54.1 billion last month, down from $61.6 billion in October.

The disappointing data reinforced the view that the economy remains in the midst of a gradual slowdown which will require policymakers in Beijing to roll out more measures to boost growth in coming months.

3. Global shares weaker in risk-off trade

Global stock markets were in the red on Tuesday, as market sentiment remained subdued after the latest Chinese trade figures added to fears over a China-led slowdown in global growth.

Asian stocks ended lower, with shares in China leading losses. The downbeat sentiment spilled over to Europe, where the DAX and FTSE 100 were down around 0.6%.

Meanwhile, U.S. stock futures were down 0.5%, suggesting a weaker open on Wall Street later in the day. U.S. markets declined on Monday, as energy shares weighed after oil prices slid to their lowest point in nearly seven years.

4. U.S. data eyed

The economic calendar is thin on Tuesday, with the main focus on data on job openings for October due at 10:00AM ET.

Market players also started looking ahead to the Federal Reserve's upcoming policy meeting on December 15-16. The likelihood of a December rate hike stands at 80%, according to Fed funds futures data from the CME Group (O:CME).

5. Japan dodges recession with GDP revision

Data released earlier showed that Japan's economy grew at a relatively robust pace last quarter, with GDP up an annualized 1.0%, compared to a preliminary estimate of a 0.8% contraction. The upward revision reflected strong business investment, which increased 2.3% on an annualized basis compared to an initial estimate of a 5% drop.

The stronger than expected data lessened speculation for additional easing steps by the Bank of Japan, boosting the yen higher against the U.S. dollar (USD/JPY).

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