Investing.com - Here are the top five things you need to know in financial markets on Thursday, December 8.
1. ECB seen extending QE at meeting
At its final meeting of 2016 the ECB must decide whether to extend its €80 billion a month quantitative easing program, which is currently on track to end in March 2017.
Most investors are expecting the ECB to announce a six month extension.
But the ECB could also talk about tapering its bond-buying stimulus program, by trimming the amount it purchases each month, which would spook markets.
The ECB will also likely discuss the situation in Italy, where efforts to recapitalize its ailing banking sector are continuing.
The ECB is to announce its monetary policy decision at 12.45 GMT and Mario Draghi’s press conference is to follow at 1.30 GMT.
2. Euro at 3-week highs, European stocks rise
The euro rose to three-week highs against the dollar, with EUR/USD at 1.0788, indicating that traders do not expect the ECB sound too dovish.
European stocks were also higher, amid expectations for an extension of the ECB’s stimulus program.
Germany's DAX, London’s FTSE 100, Italy’s FTSE MIB and France’s CAC 40 were all higher.
The dollar slid lower against a basket of six other major currencies, with the U.S. dollar index down 0.21% to 100.08, not far from a three-week low of 99.87 set on Monday.
3. Oil prices climb
Oil prices climbed on Thursday, but doubts remained over whether a planned output cut by OPEC will be enough to reduce a global supply glut after data showing an increase in stockpiles in key areas.
U.S. crude was trading at $50.36 a barrel at 11:00 GMT, up 59 cents or 1.19% from its last close, while global benchmark Brent futures were at $53.70 a barrel, up 70 cents or 1.32%.
Elsewhere in commodity markets gold was at $1,177.15, almost unchanged for the day.
4. Glencore buys $11 billion stake in Rosneft
Commodities trader Glencore (LON:GLEN) and Qatar’s sovereign wealth fund have completed a deal to purchase an $11 billion stake in Russian state oil firm Rosneft in a surprise deal.
The sale is part of a strategy by the Kremlin to sell assets to raise funds needed to fill a budget shortfall left by low oil prices.
Kremlin spokesman Dmitry Peskov said the deal was the largest in the global energy industry this year.
5. U.S. futures point to slightly higher open on Wall Street
Wall Street futures Thursday pointed to slightly higher open for the major U.S. indexes.
The Dow futures were up 10 points or 0.05%, S&P 500 futures were edged up 1.25 points or 0.06%, while the tech-heavy Nasdaq 100 futures were up 6.13 points or 0.12%.
The U.S. was scheduled to release data on jobless claims at 08.30 ET.