Investing.com - Here are the top five things you need to know in financial markets on Thursday, November 29:
1. WTI Oil Falls Below $50
In commodities, oil prices sank to their lowest levels in more than a year, with the U.S. benchmark dropping below $50, as swelling domestic inventories and record production scared off investors.
U.S. West Texas Intermediate crude futures were down 40 cents, or about 0.8%, at $49.89 per barrel by 5:35AM ET (1035GMT), their lowest level since Oct. 2017.
U.S. commercial crude oil inventories rose by 3.6 million barrels to 450 million barrels last week, the Energy Information Administration (EIA) said in a weekly report on Wednesday. That was the highest level in more than a year.
Meanwhile, international Brent crude oil futures declined 64 cents, or 1.1%, to a 13-month low of $58.45 per barrel, as traders continued to weigh prospects of a coordinated production cut among major global oil producers ahead to a key meeting of OPEC ministers next week in Vienna.
2. Fed FOMC Meeting Minutes
After Federal Reserve Chairman Jerome Powell suggested the central bank may be nearing an end to its rate tightening cycle, investors are now looking ahead to minutes of the Fed's latest meeting for further evidence on whether it has pivoted to a more dovish stance on policy.
The minutes of the Fed's Nov. 9 meeting are slated for release at 2:00PM ET (1900GMT).
In a speech on Wednesday, Powell said interest rates were "just below" the neutral level at which they neither stimulate nor hinder economic growth. The comments came less than two months after he said rates were probably "a long way" from that point.
Investors viewed the shift as an indication of fewer interest rate hikes next year.
A fourth rate hike for this year is expected in December, but the road from there is unclear. While Fed policymakers have pointed to three increases in 2019, the market is only anticipating one.
3. U.S. PCE Inflation Data
On the economic calendar, investors will get more data on the state of the U.S. consumer with personal income and spending data for October set for release at 8:30AM ET (1330GMT).
Economists expect personal income to rise 0.4% over the prior month, while spending is forecast to gain 0.4%, according to estimates.
The Fed’s preferred inflation metric, core personal consumption expenditures (PCE), is also set for release in the morning.
The consensus forecast is that the report will show that the core PCE price index inched up 0.2% last month. On an annualized basis, core PCE prices are expected to rise 1.9%.
Weekly jobless claims figures and the latest pending home sales report are also due in the morning.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was modestly higher at 96.80, after hitting an overnight low of 96.54.
In the bond market, U.S. Treasury prices edged higher, pushing yields lower across the curve, with the benchmark 10-year yield briefly falling to a more than two-month nadir of 2.997%.
Read more: Are Powell’s Rate Comments A Game Changer For USD?: Kathy Lien
4. U.S. Futures Point to Pullback
U.S. stock futures pointed to a lower open, pulling back after the Dow notched its biggest one-day gain in eight months.
The blue-chip Dow futures were down 54 points, or about 0.2%, the S&P 500 futures ticked down 7 points, or around 0.25%, while the tech-heavy Nasdaq 100 futures indicated a decline of 30 points, or 0.45%.
The moves in premarket come after Wall Street soared on Wednesday, with the Dow closing up over 600 points.
Elsewhere, European stocks were on the front foot in mid-morning trade, with most sectors and major bourses across the region in positive territory.
Earlier, Asia markets closed mostly mixed, with markets in mainland China under pressure ahead of the upcoming G20 summit in Buenos Aires, where U.S. President Doanld Trump and his Chinese counterpart, Xi Jinping, are scheduled to discuss trade.
5. Police Raid Deutsche Bank 's Frankfurt Offices
Deutsche Bank (DE:DBKGn) shares fell 4% to approach their lowest level on record in Frankfurt following news that roughly 170 criminal police officers, prosecutors and tax inspectors searched six of its offices in and around Frankfurt on money laundering allegations.
Investigators are probing the activities of two Deutsche Bank staff members who are alleged to have helped clients set up off-shore firms to launder money, the Frankfurt public prosecutor's office said.
Deutsche Bank confirmed the search, adding that it is fully cooperating with the authorities.