Investing.com - Here are the top five things you need to know in financial markets on Thursday, December 22:
1. Focus turns to U.S. data
With market volumes beginning to thin out ahead of the year-end holiday period, investors will focus on U.S. economic data later in the day for potential catalysts.
The final revision to third-quarter GDP is released at 8:30AM ET (13:30GMT), along with weekly jobless claims and durable goods orders for November. Personal income and spending and PCE prices are released at 10:00AM ET (15:00GMT).
Both data sets could sway market expectations around the pace of interest rate increases by the Federal Reserve in 2017.
2. Dollar loses steam ahead of holidays
The dollar lost some steam on Thursday, slipping from its 14-year-high against a basket of currencies as investors took profits in the run-up to the Christmas weekend.
The dollar index was down 0.25% at 102.78 by 6:10AM ET (11:10GMT). The index climbed to 103.62 on Tuesday, the strongest level since December 2002.
The greenback stood at 117.54 versus the yen, retreating from a 10-1/2 month high of 118.65 set last week.
The euro was up 0.4% at 1.0468 against the dollar, rebounding from 1.0352 on Tuesday, the lowest since January 2003.
3. Global stock markets drift lower as holiday season approaches
U.S. stock markets pointed to modest losses at the open on Thursday morning, with the Dow remaining within sight of the psychologically important milestone of 20,000 mark as traders eyed the release of a big batch of data.
Meanwhile, European stocks moved mostly lower in mid-morning trade, as concerns over the Italian banking sector weighed on sentiment.
In Asia, the Shanghai Composite in China closed 0.1% lower, while the Nikkei in Japan also eased down 0.1%.
4. Italy's Monte dei Paschi on brink of bailout
Investors contemplated the future of embattled Italian lender Banca Monte dei Paschi di Siena (MI:BMPS) after media reports said a state bailout could be announced as soon as Thursday.
The world's oldest bank has all but failed to pull off a last-ditch private €5 billion recapitalization. The Italian state is now set to rescue the troubled lender with a €20 billion aid package and a plan to force losses on bondholders.
Shares of the ailing bank fell nearly 7% after the open, then swung up by more than 3%. They recently traded up by around 1%.
5. Bitcoin surpasses $850, highest since 2014
Web-based digital currency bitcoin hit its highest levels since January 2014 on Thursday.
(Bitcoin) was trading as high as $875 on the New York-based itBit exchange, before falling back to $870, up more than 4% on the day and nearly doubling its level from the start of 2016.
The digital currency is up almost 18% so far this month amid heavy buying from India and China, as investors look to shield themselves from currency devaluations and cash shortages.
U.S. and European buyers also accounted for the bulk of trading volume, as traders look for safe havens following dramatic political shifts in the world economy.