Investing.com - Here are the top five things you need to know in financial markets on Thursday, February 18:
1. OECD cuts 2016 global growth forecast to 3% from 3.3%
The Organization for Economic Cooperation and Development (OECD) cut its global growth forecast for this year and warned that some emerging markets are at risk of exchange-rate volatility, according to its latest outlook published Thursday.
The OECD said global gross domestic product will expand 3.0% in 2016, down from November’s prediction of 3.3%.
2. Oil on the rise after Iran support for production freeze and while waiting for US inventories
Iran welcomed plans by Russia and Saudi Arabia to freeze current production though no clear commitment was made.
Investors await the publication of crude inventory data by the US Department of Energy (DOE) later on Thursday. The DOE data, normally published on Wednesdays, was postponed due to the US holiday on Monday.
3. Chinese CPI weaker with PBoC embarking on market operations
China’s consumer price index (CPI) rose 1.8% year-on-year in January, below forecasts for a 1.9% increase and compared to December’s reading of a 1.6% rise.
“However, with elevated PPI deflation (5.3% y/y), we see ample room for easing,” Barclays (L:BARC) wrote in a morning report on Thursday.
These experts noted that the Chinese central bank lowered the MLF rate which is what the PBoC charges lenders for medium-term borrowing for the second time already this year.
4. European Union summit to decide UK’s membership
The two-day EU summit began on Thursday with the main focus being on discussions to keep the UK in the group as British Prime Minister David Cameron insisted that the agreement would come “now or never”.
In a new draft deal sent to EU leaders overnight and seen by Reuters, officials tried to overcome differences over the most contentious areas - namely migration curbs and financial safeguards - but much was left for debate in talks later in the day.
5. Global stocks mostly higher, waiting for US weekly job data
With the exception of slight losses registered in China and the UK, global stocks were broadly higher as investors await the publication of the US weekly jobless claims later on Thursday at 13:30GMT or 8:30AM ET.
In Asia, though Dow Jones Shanghaiclosed down 0.18%, both Nikkei 225and S&P/ASX 200registered solid gains of more than 2%.
Excluding the FTSE 100 which dropped by 0.3% at 10:54GMT, European stocks moved broadly higher with average gains of 1%.
The benchmark Euro Stoxx 50 rose exactly 1%.
Meanwhile, US futures pointed to a positive open with S&P 500 futures advancing 0.4% and theNasdaq 100 Futures 4x Long rising 0.53%.