Investing.com - Here are the top five things you need to know in financial markets on Wednesday, February 8:
1. Euro hit by political woes, yen edges higher
The euro fell against the dollar for a third day on Wednesday as concerns over growing political risks in the euro zone drove its worst run of daily losses in nearly two months.
EUR/USD slid 0.32% to 1.0643, the lowest level since January 30.
The yen edged higher against the dollar ahead of a visit by Japanese Prime Minister Shinzo Abe to the U.S. later this week, where trade and currency issues are expected to be in the spotlight.
U.S. President Donald Trump has accused Tokyo of using monetary policy to devalue its currency to boost exports.
2. Euro zone bond yields still rising
Bond yields in the euro area continued to rise, with the gap between French and Italian yield spreads over safe haven German bunds widening to multi-year highs amid fears over the prospect of a Brexit or Trump-style shock in France’s presidential election.
The gap between France's 10-year bond yields and Germany's 10-year yields rose to 78.8 basis points, the highest since November 2012.
Greek borrowing costs also climbed as a fresh funding crisis loomed.
Yields on 10-year Greek bonds rose above 7.6%, while the yield on the 2-year bond climbed above 10% to the highest level since mid-2016.
3. Global stocks mixed
U.S. stock market futures pointed to a slightly higher open on Wall Street, as investors awaited fourth quarter earnings results from HBO parent company Time Warner Inc (NYSE:TWX) and Allergan (NYSE:AGN) ahead of the opening bell.
Whole Foods Market Inc (NASDAQ:WFM) and Lions Gate Entertainment (NYSE:LGFa) were to release their earnings reports after the market close.
European stock markets had a mixed morning as political tensions mounted.
In Asia, markets recovered from early losses to end mainly higher with the Shanghai Composite in China closing up 0.4% and Japan's Nikkei closing up 0.5%.
4. Oil prices hit three-week lows
Oil prices fell to three-week lows on Wednesday extending falls from the previous session after an industry report showing an unexpectedly large U.S. inventory build last week underlined concerns over a global supply glut.
Brent crude, the international benchmark for oil prices, was trading at $54.73 per barrel at 11.00 GMT, down 33 cents from the last close. U.S. crude was down 45 cents at $51.72 a barrel.
Elsewhere in commodity markets, gold was trading at three-month highs of $1,237.75 an ounce.
5. Bitcoin slumps as China holds talks with exchanges
Prices of web-based digital currency Bitcoin (itBitUSD) slumped almost 2% on Wednesday following reports that China’s central bank was holding talks with several domestic bitcoin exchanges.
The reports added to concerns that Chinese regulators will ramp up oversight of digital currency trading in what is a largely unregulated market.