Investing.com - Here are the top five things you need to know in financial markets on Monday, August 28:
1. Energy markets roiled as Hurricane Harvey hits U.S. petroleum industry
Oil prices declined, while gasoline futures soared to their highest since July 2015, as energy markets digested the impact of Hurricane Harvey on the U.S. Gulf Coast.
U.S. crude was about 1% lower at $47.42 a barrel, while global benchmark Brent lost roughly 0.2% to $51.90.
Meanwhile, gasoline futures jumped more than 3% to $1.592 a gallon. It rose by as much as 7% earlier to touch its highest since July 2015 at $1.618.
Harvey came ashore over the weekend as the most powerful hurricane to hit Texas in more than 50 years, killing at least two people, causing large-scale flooding, and forcing the closure of Houston port as well as several refineries.
Texas is home to 5.6 million barrels of refining capacity per day. Over 2 million barrels per day (bpd) of refining capacity were estimated to be offline as a result of the storm.
Although the full extent of the storm's damage is not yet clear, some analysts said the impact would be felt globally and affect energy markets for weeks.
2. Third round of Brexit talks resume
British officials arrived in Brussels to begin a third round of Article 50 negotiations with the European Union (EU).
Chief Brexit negotiators, Britain's David Davis and the EU's Michel Barnier, will meet at 1500GMT (11:00AM ET) before more talks on Tuesday and Wednesday. A news conference is due on Thursday, according to a schedule published by Brussels.
Earlier this year, Barnier said that the third round of talks must be about "clarification" in terms of where the UK stands on certain issues, including financial settlements.
The UK however is expected to urge the EU to show imagination and flexibility in the upcoming talks, and focus on the two regions' post-Brexit ties, rather than just on the divorce settlement.
Sterling was a shade higher against the dollar, with GBP/USD at 1.2905, but remained close to an eight-year trough against the euro, with EUR/GBP last at 0.9243.
3. Euro climbs to 2-1/2-year high after Draghi, dollar sinks on Yellen
The euro touched fresh two-and-a-half year highs against the dollar after European Central Bank President Mario Draghi held off talking about the recent strength of the currency in a speech at the Jackson Hole economic symposium.
Draghi also avoided giving new clues as to when the ECB might wind down its stimulus programs but acknowledged that the euro zone’s economic recovery is gaining ground.
The euro was at around 1.1930 against the greenback, after hitting 1.1960 in overnight trade, the strongest level since January 2015.
Meanwhile, the U.S. dollar sank to its lowest in more than a year after a speech by Federal Reserve Chair Janet Yellen at the same conference made no reference to monetary policy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 92.38 after falling as low as 92.30 earlier, the weakest since May 2016.
4. Global stock markets drift lower
Global stock markets started the week on the back foot, as investors fretted over the economic impact of Hurricane Harvey, while eying movements in the currency market.
Stock markets across Asia ended mixed, with benchmarks in mainland China and Hong Kong rising, while Seoul and Sydney finished lower. Japan's Nikkei 225 was little changed.
In Europe, shares were weaker in mid-morning trade, with almost all major bourses across the region in negative territory. London's FTSE 100 was closed for a public holiday.
Meanwhile, U.S. stock futures pointed to a softer open on Wall Street later in the day, with the major benchmarks down between 0.1%-and-0.2%.
5. Uber picks Expedia 's CEO to be new chief
Ride-services company Uber chose Dara Khosrowshahi, the chief executive of travel company Expedia (NASDAQ:EXPE), as its chief executive, according to two sources with knowledge of the matter.
He replaces Travis Kalanick, Uber's co-founder, who was ousted as CEO in June amid growing concern over his behavior and the behavior of senior managers under him.
Khosrowshahi is tasked with mending Uber's image, repairing frayed relations among investors, rebuilding employee morale and creating a profitable business after seven years of losses.
He beat out Jeff Immelt, chairman of General Electric (NYSE:GE), and Meg Whitman, chief executive of Hewlett Packard Enterprise (NYSE:HPE), according to sources close to the process.