IMF headquarters in Washington. Photo: Getty Images
Washington, India (BBN) – Here are the top five things you need to know in financial markets on Wednesday, December 6.
1. GLOBAL STOCKS LOWER AMID GEOPOLITICAL RISKS
Global stocks were lower on Wednesday amid a broad risk-off move with various factors – including the UK’s stalled Brexit talks and concerns over whether U.S. tax reforms will deliver growth – souring investor sentiment, reports Investing.com.
Asia’s equity markets suffered losses overnight, following a selloff on Wall Street on Tuesday. Japan’s Nikkei closed down almost 2% and Shanghai stocks fell to three-month lows with weaker metal prices and monetary policy concerns in China weighing.
European shares fell sharply, with tech stocks coming under renewed selling pressure and miners hit by slumping metal prices.
On Wall Street, U.S. stock futures pointed to a lower open, with Dow futures, S&P 500 futures and the tech-heavy Nasdaq 100 futures all in negative territory.
Investors remained on edge ahead of a Friday deadline to avoid a U.S. government shutdown.
Geopolitical risks also weighed with U.S. President Donald Trump set to recognize Jerusalem as the capital of Israel later in the day, despite warnings that this will inflame tensions in the Middle East.
2. BITCOIN SURGES PAST $12,000 TO NEW RECORD
Bitcoin prices soared to another record high, surging past the $12,000 threshold.
The cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as $12,681 on the U.S.-based Bitfinex exchange, the most in its nine-year history.
Bitcoin, which started 2017 at about $1,000 and broke through $5,000 in October has risen almost 1,200% so far this year.
Prices have rallied ahead of the start of bitcoin futures trading next week, a potentially major step in the evolution of the digital currency, but its meteoric rise has prompted warnings of an increasingly volatile bubble.
3. OIL LOWER AS FOCUS TURNS TO SUPPLY DATA
Oil prices weakened amid speculation weekly supply data due later in the day will show a sizable gain in U.S. gasoline and fuel supplies.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (15:30GMT).
Industry group the American Petroleum Institute reported late Tuesday that U.S. oil inventories dropped by nearly 5.5 million barrels last week against expectations for a decline of around 4 million barrels.
But the report also showed a whopping gain of around 9.2 million barrels in gasoline stocks, while distillate stocks also rose.
U.S. crude futures were down 39 cents, or about 0.68% to $57.23 a barrel, while Brent was at $62.52, down 34 cents or 0.54% from its last close.
4. ADP NONFARM PAYROLLS REPORT EYED
The ADP nonfarm payrolls report is due at 08:15 AM ET (13:15 GMT). The consensus forecast is that the data will show that the private sector added 185,000 jobs in November, down from 235,000 in in the previous month.
The ADP figures come ahead of the Labor Department’s more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment.
Economists are expecting the U.S. economy to have added 200,000 jobs after adding 261,000 positions in October, while the unemployment rate is forecast to hold steady at 4.1%.
5. BANK OF CANADA RATE DECISION AHEAD
The Bank of Canada’s interest rate decision is due at 10:00AM ET (15:00GMT), with most analysts expecting the central bank to hold its benchmark rate at 1.0%.
The BOC held interest rates steady at its previous meeting in October and said that while less stimulus will be required over time the bank will be cautious as it considers future moves given the risks and uncertainties facing the economy.
Market watchers believe the Canadian central bank will stand pat on interest rates until April, held back by the uncertainty over how highly indebted consumers will handle increasing borrowing costs and the unknown fate of the North American Free Trade Agreement (NAFTA).
BBN/MMI/ANS
