Investing.com - Here are the top five things you need to know in financial markets on Monday, May 9:
1. Oil prices jump 2% as Canadian wildfire disrupts output
Oil prices rallied on Monday, as huge wildfires in rural Canada continue to hit supply from the country's vast oil sands reserves.
At least 645,000 barrels a day of oil-sands production have been sidelined, based on public announcements, but the true figure may be closer to one million barrels a day, or nearly half of Canada’s total 2.5 million barrels a day in oil-sands output.
U.S. crude was up $1.07, or 2.4%, to $45.73 a barrel by 9:55GMT, or 5:55AM ET, while Brent tacked on 87 cents, or 1.9%, at $46.24.
2. Weak China trade data adds to growth concerns
Monthly trade data released on Sunday, which showed that both exports and imports fell more than expected in April, added to concerns over the health of China’s economy.
Exports slumped 1.8% from a year earlier, worse than forecasts for a decline of 0.1%, while imports dropped 10.9%, compared to expectations for a fall of 5.0%. That left China with a surplus of $45.6 billion last month, the General Administration of Customs said.
3. Dollar rises to 2-week as yen slumps on intervention warning
The greenback firmed broadly against its major counterparts, while the yen slumped to two-week lows after Japan’s finance minister said officials were prepared to intervene in the currency market to stem the yen’s gains if necessary.
The dollar index, which measures the greenback against a basket of currencies, rose to 94.05 in early trade, the most since April 28.
The dollar rose to 107.95 against the yen, well above the recent 18-month trough of 105.55, after Japan’s Finance Minister Taro Aso said that Tokyo is ready to intervene in the currency market if excessive moves in the yen are enough to affect Japan’s trade, economic and fiscal policies.
4. Global stocks mostly higher as oil prices rally
U.S. stock futures pointed to a higher open on Monday, as a rally in oil prices and hopes the Federal Reserve will keep rates on hold in June lifted sentiment.
Elsewhere, European stock markets bounced off one-month lows, with Germany’s DAX reclaiming the 10,000-level, as higher oil prices offset renewed concerns over a slowdown in China.
Earlier, shares in Asia closed mostly lower as investors digested the latest weak trade data from China. Mainland China markets saw the biggest declines with the Shanghai Composite tumbling 2.8% to an eight-week low.
5. Gold slides back down to $1,280
Gold futures slumped $14.50, or 1.1%, to $1,279.85 a troy ounce on Monday, as investors viewed Friday’s U.S. jobs data as less disappointing than first thought.
The Labor Department reported that the U.S. economy added 160,000 jobs last month, the smallest increase since September and well below the 202,000 jobs forecast by economists. The unemployment rate remained steady at 5%. The one bright sport of the report showed that average hourly earnings rose by eight cents or 0.3%, bringing the year-on-year increase to 2.5% from 2.3% in March.
Elsewhere in metals trading, copper futures sank to four-week lows on worries over China's economy, while iron ore prices plunged 9% after port stockpiles in China expanded to the highest in more than a year.