Investing.com - Here are the top five things you need to know in financial markets on Wednesday, January 20:
1. Oil prices sink to lowest since 2003
Oil prices sank to the lowest level since 2003 on Wednesday, as ongoing concerns over the strength of the global economy added to uncertainty about how quickly the global glut of crude is set to shrink.
U.S. crude tumbled to a session low of $28.45 a barrel, a level not seen since September 2003, before recovering to trade at $28.77 by 11:20GMT, or 6:20AM ET, down 80 cents, or 2.72%. Meanwhile, Brent lost 67 cents, or 2.31%, to trade at $28.09 after sinking to $27.79 earlier.
2. Japan’s Nikkei enters bear market as Asian stocks fall
Japan’s Nikkei 225 plunged 3.7% to enter a bear market Wednesday, while Hong Kong stocks sank 3.9% to hit a three-and-a-half year low.
Investors are concerned about a weakening Hong Kong dollar, which fell to the lowest level since 2007 against the U.S. dollar (USD/HKD), as well as further declines in the oil market and a lack of major economic stimulus from Beijing.
3. European stocks down 3%, on course for lowest close in more than a year
European stock markets sold off Wednesday, heading toward their lowest close in more than a year, as the continuing rout in oil drove losses across the board.
Germany's DAX lost 3.1%, the EURO STOXX 50 plunged 3%, France’s CAC 40 sank 3.2%, while London’s FTSE 100 dropped 2.9%.
4. Dow futures down 300 points
U.S. stock futures pointed to sharp losses at the open on Wednesday, joining a global sell-off, amid ongoing oil price weakness.
The blue-chip Dow futures tumbled 319 points, or 2%, by 11:20GMT, or 6:20AM ET, the S&P 500 futures slumped 36 points, or 1.9%, while the Nasdaq 100 futures dropped 89 points, or 2.15%.
In earnings news, Goldman Sachs (N:GS) shares were little changed ahead of the release of its fourth quarter earnings report due before the opening bell.
Investors kept an eye on upcoming U.S. data to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016. The U.S. is to release reports on building permits, housing starts and consumer price inflation at 8:30AM ET Wednesday.
5. Russian rouble hits new record low versus U.S. dollar
Russia's rouble extended losses on Wednesday to trade at an all-time low of 80.32 against the dollar (USD/RUB), as oil prices slid and global markets fell.