Investing.com - Here are the top five things you need to know in financial markets on Tuesday, November 22:
1. Global stocks higher on back of U.S. records
Global stocks were buoyed on Tuesday by the fact that all four major U.S. indices closed at record highs a day earlier. That was the first time since 1999 that the Dow, S&P 500, Nasdaq Composite and Russell 2000 managed to simultaneously break new records.
European stocks traded higher on Tuesday, helped by climbing oil prices amid mounting expectations for a global production freeze deal and as optimism following Donald Trump’s election continued to boost market sentiment.
Earlier, Asian stocks closed at one-week highs, helped by solid overnight gains on Wall Street.
U.S. futures pointed to a slightly higher open on Friday, suggesting the American indices are poised for another round of record highs. At 5:55AM ET (10:55GMT), the blue-chip Dow futures rose 51 points, or 0.27%, S&P 500 futures gained 6 points, or 0.26%, and the Nasdaq 100 futures traded up 20 points, or 0.42%.
2. Trump vows to scrap TTP
President-elect Donald Trump promised that he will pull the U.S. out of the Trans-Pacific Partnership (TPP) on his first day in office.
The TPP trade deal was signed by 12 countries -including the U.S., Japan, Malaysia, Australia, New Zealand, Canada and Mexico and notably excluding China- which together cover 40% of the world's economy.
In the video announcing his intentions, Trump explained that TPP was ““a potential disaster for our country” and promised to "negotiate fair, bilateral trade deals that bring jobs and industry back onto American shores."
The promise to submit an intent to withdraw brought to question what Trump’s plan to renegotiate the North American Free Trade Agreement (NAFTA) with reports suggesting that Canada and Mexico were already preparing their own list of demands that could require difficult U.S. concessions.
3. Bond investors price in Fed rate hike at 100%
Bond markets placed the odds that the Federal Reserve (Fed) will hike rates at the December 13-14 decision at 100% on Tuesday, according to Bloomberg calculations.
Fed funds markets had briefly placed the chances on a move at 100% on Monday, though odds eased back and last stood at 95.4%, according to Investing.com’s Fed Rate Monitor Tool.
4. Oil prices near 1-month high on OPEC hopes
Oil prices rose to their highest level in over three weeks on Tuesday, as investors continued to bet that the Organization of the Petroleum Exporting Countries (OPEC) will reach an agreement to rein in output this month.
As the second and final day of the OPEC technical committee kicked off on Tuesday, the Nigerian delegate Ibrahim Waya said that negotiations the first day had gone well and that “everyone was on board”, including Iran and Iraq.
Waya indicated that the final details on a six-month duration agreement for oil output limitations were expected to be closed on Tuesday for presentation at the official OPEC meeting on November 30.
U.S. crude oil futures gained 1.29% to $48.86 at 5:57AM ET (10:57GMT), while Brent oil traded up 1.64% to $49.70.
5. Dollar holds near 14-year high, gold maintains buyer interest
The dollar was holding near almost 14-year highs against a basket of the other major currencies on Tuesday after falls on Monday as traders took profits in the wake of the greenback’s longest rally in more than four years.
At 5:57AM ET (10:57GMT), the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 100.95, holding below the 13-and-a-half year high of 101.54 set on Friday.
Before falling on Monday the greenback had risen for 10 straight sessions, its longest winning streak since May 2012.
Meanwhile, gold prices rose for a second day on Tuesday as the weaker dollar helped lift the precious metal off recent lows.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was last at $1,216.55 a troy ounce, after earlier rising as high as $1,220.85.
On Monday, gold rose 0.82% after falling to lows of $1,201.30 on Friday, a level not seen since May 30.