Investing.com - Here are the top five things you need to know in financial markets on Tuesday, February 16:
1. Saudi Arabia, Russia agree to freeze oil production
A meeting between oil ministers from Saudi Arabia, Russia, Qatar and Venezuela in Doha on Tuesday ended with consensus to freeze output, but not to cut production.
Qatari energy minister Mohammad bin Saleh al-Sada said his country had agreed to freeze output at January's levels, together with Saudi Arabia, Russia and Venezuela in a bid to stabilize the volatile oil market.
However, the deal is contingent on other major producers following suit. Many in the market are skeptical Iran and Iraq will agree to such a proposal.
Oil soared more than 6% ahead of the meeting on hopes of a coordinated cut in crude output, but pared gains following the news. U.S. crude was last up 44 cents, or 1.51%, at $29.88 a barrel, while Brent rose 72 cents, or 2.14%, to $34.11.
2. Risk appetite fizzles as oil rally wilts
European stock markets declined Tuesday, falling to session lows as a recovery in risk appetite fizzled after an oil price rally faded.
Meanwhile, U.S. stock futures came off their earlier highs, while the yen and euro rose against the dollar.
3. German ZEW economic sentiment falls to 16-month low in February
German economic sentiment deteriorated to the lowest level since October 2014 in February, mirroring heightened financial market volatility and a deteriorating global economic outlook, industry data showed on Tuesday.
The ZEW indicator of economic expectations fell to 1.0 from 10.2 in January. Analysts had expected the index to fall to 3.2 this month.
4. U.K. inflation rises to 1-year high of 0.3% in January
Consumer price inflation in the U.K. edged up to a one-year high in January, offering modest signs that price growth may be climbing off 2015's record lows.
According to the U.K. Office for National Statistics, the rate of consumer price inflation rose 0.3% last month, matching forecasts and up from 0.2% in December.
5. Gold prices briefly fall below $1,200
Gold futures briefly fell below the $1,200-level on Tuesday, before battling back to hit $1,215 as market players continued to monitor volatile movements in global financial markets.
Prices of the yellow metal soared to a one-year high of $1,263.90 last Thursday, boosted by a flight to safety. Futures jumped $65.60, or 7.02%, last week, the best weekly performance since December 2008.