Breaking News
0

Top 5 Things to Know in The Market on Wednesday

EconomyDec 12, 2018 10:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Here are the top five things you need to know in financial markets on Wednesday, December 12:

1. Trump Optimistic on Trade

Investors will be keeping abreast of the ongoing trade spat between the U.S. and China amid recent signs the world's two largest economies will be able to resolve their differences.

In an interview with Reuters, U.S. President Donald Trump said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal.

Trump also said he would intervene in the Justice Department's case against a top executive at China's Huawei Technologies if it would serve national security interests or help close a trade deal.

A Canadian court on Tuesday granted bail to the executive in a move that could help placate Chinese officials angered by her arrest.

Washington and Beijing have been engaged in a trade dispute for the most part of the year, with both countries slapping tariffs on several of each other's products.

2. UK PM May Faces No-Confidence Vote

In Europe, British Prime Minister Theresa May will face a vote of no-confidence from members of her own Conservative party this evening, as Britain's planned divorce from the European Union was plunged into chaos.

Graham Brady, chairman of the party's so-called 1922 committee, a group of influential backbench members of parliament, said the threshold for a vote had been exceeded.

The vote is scheduled to take place this evening between 18:00 and 20:00 GMT (1:00PM ET and 3PM ET).

According to BBC's political editor Laura Kuenssberg, results are said to be announced at 21:00 GMT (4PM ET).

May could be toppled if 158 of her 315 lawmakers vote against her.

Speaking outside her Downing Street residence just over an hour after a confidence vote in her leadership was announced, May said she would fight for her job with everything she has got.

In a stark warning to Brexit-supporting opponents in her party, May said that if they toppled her, then Brexit would have to be delayed and perhaps even stopped.

The British pound fell on the confidence vote but then rose to 1.2535 (GBP/USD) by 5:40AM ET (10:40 GMT) on news that Brexit might have to be delayed.

3. Dow Futures Point to Triple-Digit Gains

U.S. stock futures pointed to a higher open, with the Dow set for a triple-digit gain, as optimism over the U.S.-China trade dispute lifted sentiment.

The blue-chip Dow futures were up 195 points, or 0.8%, the S&P 500 futures jumped 21 points, or around 0.8%, while the tech-heavy Nasdaq 100 futures indicated a gain of 71 points, or roughly 1.1%.

The moves in premarket follow another volatile session on Wall Street on Tuesday, which saw the major indexes oscillate between positive and negative territory before falling sharply in the last half hour of trading.

Elsewhere, European stocks were higher, with most major bourses across the region in positive territory for the second day in a row.

Earlier, Asian shares closed higher, with stocks in Japan and Hong Kong leading gains across the region.

Read more: Markets Buoyed By Trade War Progress: Craig Erlam

4. U.S. Inflation Data in Focus

The Commerce Department will publish November CPI figures at 8:30AM ET (13:30 GMT), which should give clearer signs on the pace of inflation.

Consumer prices are expected to have risen 0.1% last month, according to estimates, cooling from October's 0.3% gain. On a yearly base, CPI is projected to climb 2.2%, down from 2.5% a month earlier.

Excluding the cost of food and fuel, core inflation prices are forecast to have gained 0.2% last month and 2.2% over the prior year.

Weakening inflation will likely add to expectations that the Federal Reserve will need to slow its pace of rate hikes next year.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was little changed at 97.36.

In the bond market, U.S. Treasury yields inched higher, with the benchmark 10-year note standing at 2.88%, while the yield on U.S. government bonds with 2-year maturities was at 2.76%.

The Fed is widely expected to announce its fourth rate hike of 2018 next week, but investors are beginning to question how many increases it can implement next year.

5. Oil Prices Rally Ahead of EIA's Weekly Supply Report

In commodity markets, the U.S. Energy Information Administration will release its official weekly oil supplies report for the week ended December 7 at 10:30AM ET (15:30 GMT).

Analysts expect the EIA to report a drop of around 3.0 million barrels in crude supplies. If confirmed, it would be the second straight weekly decline in domestic oil inventories.

The American Petroleum Institute (API) said on Tuesday that U.S. crude inventories dropped by 10.2 million barrels last week.

U.S. West Texas Intermediate crude futures were up 97 cents, or 1.9%, at $52.61 a barrel, while international Brent crude oil futures rallied 99 cents, or 1.6%, to $61.19 per barrel.

-- Reuters contributed to this report

Top 5 Things to Know in The Market on Wednesday
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email