Here are the top five things you need to know in financial markets on Wednesday, February 24:
1. Oil continued to plunge as probability of production cut fades
Oil continued to fall on Thursday as the oil ministers from some of the major producers dismissed the possibility of a production cuts.
The losses continued after Saudi Arabia’s oil minister said on Wednesday that production cuts "will not happen".
Crude oil futures for April delivery sunk 3.11% to $30.88 at 10:41AM GMT or 5:41AM ET, while Brent oil, for its part, declined 2.16% to $32.5 as investors await the U.S. crude inventories that will be reported at 15:30GMT or 10:30AM ET.
2. Sterling continues to lose ground and investors weigh the effects of the Brexit
The pound found little respite from worries over the effect of referendum on U.K.’s membership in the European Union (EU) that is scheduled to take place on June 23.
Cable was already trading at a seven-year low as economists predicted that it could $1.35, level not seen since 1985, if Britain votes to leave the EU, event that markets refer to as Brexit.
GBP/USD dropped 0.85% stood at 139.01 at 11:00GMT or 6:00AM ET, GBP/JPY fell 1.13% to 155.39 and EUR/GBP traded up 0.47% at 0.7898.
3. Fed members may give clues on March move
Federal Reserve Vice Chair Stanley Fischer stated late Wednesday that the U.S. central bank may be willing to overshoot its employment target as the effect could serve to push inflation back towards the Fed’s 2% target.
Fischer gave no indication of what the Fed might do at the next meeting scheduled for March 15 and 16, but Kansas City Fed president Esther George did insist on Wednesday evening that a rate hike should definitely be on the table.
In this context, investors will carefully eye a slew of Fed member speeches throughout Thursday with Richmond Fed President Jeffrey Lacker scheduled to speak at 13:00GMT, or 8:00AM ET, while Dallas Fed President Rob Kaplan expected at 18:15GMT, or 13:15PM ET. St. Louis Fed President James Bullard scheduled to give remarks at 7:00PM ET.
4.Yield on the Japanese 10-year bond hit all-time low on BoJ comments
Japan 10-Year fell deeper into negative territory on Wednesday to hit an all-time low after Bank of Japan Governor Haruhiko Kuroda hinted at more policy easing.
Japanese 10-year bond yields slumped to an intraday low of -0.055%, the weakest level on record, before closing at -0.046%, down 15.0%.
5. Investors also await U.S. housing data
In a light calendar day, traders will pay attention to the release stateside of January new home sales at 15:00GMT or 10:00AM ET.
After the surprise increase in Wednesday’s existing home sales, investors will be on the lookout to see if Thursday’s data can repeat the positive news.
Analysts forecast new home sales to fall -4.4% on the month in January, after the 10.8% increase in December.