Investing.com - Here are the top five things you need to know today in financial markets:
1. All-important Fed meeting kicks off
The Federal Reserve is widely expected to raise interest rates for the first time in nearly a decade at the conclusion of its two-day monetary policy meeting at 2:00PM ET on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for signals about the path of future rate hikes.
Many in the market anticipate the pace of increases to be gradual amid concerns over tepid growth overseas and divergent monetary policies between the U.S. and other nations.
2. Investors await U.S. inflation data
The Commerce Department will publish inflation figures for November at 8:30AM ET Tuesday. The consensus forecast is that the report will show consumer prices were flat last month, after rising 0.2% in October. Core inflation is forecast to increase 0.2%, after gaining 0.2% a month earlier.
3. Oil prices rise, building on prior day's rally
Oil prices rose again on Tuesday, one day after rebounding sharply off seven-year lows, though worries that a global supply glut may stick around for longer than anticipated remained on investors' minds.
London-traded Brent jumped 51 cents, or 1.31%, to $38.67 a barrel, while U.S. crude was last up 48 cents, or 1.32%, at $36.80 as of 5:54AM ET.
4. China's yuan hits fresh 4-1/2-year low
China's yuan weakened against the dollar after the People's Bank of China set its official midpoint rate at its lowest level in more than four years for a second day on Tuesday, amid persistent worries over an economic slowdown and before an expected increase in U.S. interest rates.
China's central bank is on guard against a sudden attack on the yuan in offshore markets, and is ready to intervene if the gap between offshore and onshore exchange rates becomes destabilizing, sources involved in policy discussions say.
5. Global shares rally with oil, Fed in focus
Global stock markets rallied on Tuesday, as recently volatile crude oil prices showed some stability and as the all-important two-day Federal Reserve meeting gets underway.
Asian equities were mixed, while European stock markets rose more than 2%, putting it on course to break a five-session losing streak.
In the U.S., stock futures were up between 0.7% and 0.8%, suggesting a stronger open on Wall Street later in the day. U.S. stocks ended Monday’s volatile session with modest gains, lifted by a rebound in oil prices.