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Top 5 Things to Know In the Market on Tuesday

Published 24/05/2016, 10:56
© 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 in financial markets on Tuesday, May 24:

1. Global stocks erase early losses in volatile trade

U.S. stock futures pointed to a higher open on Tuesday, reversing overnight losses, as market players awaited further hints on the timing of the next U.S. rate hike. Tuesday's economic calendar is light with new home sales and the Richmond Fed survey, both due at 14:00GMT, or 10:00AM ET.

Elsewhere, European stock markets turned positive in afternoon hours on Tuesday, following a shaky start to the trading session, as financial shares advanced.

Earlier, shares in Asia closed mostly lower, led by declines in Japan and China, as oil prices fell, while investors continued to struggle with uncertainty over the timing of the next U.S. rate hike.

2. Oil prices down again as glut concerns persist

Oil prices pushed lower on Tuesday, on track for its fifth straight day of losses, on signs that supply disruptions in Canada and Africa are coming to an end.

U.S. crude was down 15 cents, or 0.31%, to $47.93 a barrel by 9:56GMT, or 5:56AM ET, while Brent dropped 26 cents, or 0.56%, at $48.08.

Oil futures have been well-supported in recent weeks due to a combination of supply outages in Africa as well as reduced production of Canadian crude as a result of fires in Alberta's oil sands region. However, as some of the supply disruptions are subsiding, traders are putting their focus back on the growth of global oil supply.

3. Pound jumps after poll shows ‘Remain’ campaign ahead

The pound rose for the first time in three days on Tuesday after a new opinion poll showed the ‘Remain’ campaign with a big lead with one month to go until the referendum on Britain’s European Union membership.

The latest ORB poll, published in Tuesday's Telegraph newspaper, showed that the “Remain’ campaign has a 13-point lead over the ‘Leave’ campaign. Support for remaining in the EU stood at 55%, while support for Brexit was at 42%.

GBP/USD was up 0.79% at 1.4599, rebounding from Monday’s lows of 1.4441, while EUR/GBP dropped 1.02% to 0.7668.

4. Eurogroup meets to discuss Greece debt

Eurozone finance ministers are meeting in Brussels on Tuesday to discuss how to conclude Greece’s bailout review. After a six month delay, the euro zone is likely to say that Greece has passed the reforms needed to unblock 10 billion euros ($11.2 billion) in new loans, but Athens won't get debt relief because of differences between the bloc and the International Monetary Fund.

5. Gold slumps to 4-week low on hawkish Fed rate view

Gold sank to a session low of $1,242.00 a troy ounce on Tuesday, a level not seen since April 28, as comments from Federal Reserve officials added to expectations that a rate hike could come as soon as June.

The latest signal came from Philadelphia Federal Reserve Bank President Patrick Harker who said Monday that two to three rate hikes are possible this year if the economy continues to grow as projected.

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