Investing.com - Here are the top five things you need to know in financial markets on Thursday, May 5:
1. Oil prices soar as Canadian wildfire threatens output
Oil prices rallied more than 3% on Thursday, as a huge wildfire in Canada disrupted its oil sands production.
The fire, in Alberta, Canada, has forced the evacuation of 88,000 people. Some oil pipelines in the region were shut as a precaution, while output at several facilities has been disrupted, although the volume of the decline was unclear.
U.S. crude was up $1.38, or 3.15%, to $45.16 a barrel by 9:52GMT, or 5:52AM ET, while Brent jumped $1.16, or 2.55%, at $45.76.
2. Dollar extends 3-day rally as fears over U.S. growth ease
The greenback firmed broadly on optimism the U.S. economy would bounce back after nearly stalling in the first quarter.
The dollar index, which measures the greenback against a basket of currencies, continued its three-day rally, trading at 93.54, firming after dipping under 92.00 earlier this week to tap the lowest levels since January 2015.
The dollar rose to 107.40 against the yen, above the recent 18-month trough of 105.55, while the euro fell to 1.1433, well off an eight-month high of 1.1615 scaled earlier this week.
3. China services expansion slows in April
The latest survey from China showed the service sector expanded at a slower pace in April. The Caixin services purchasing managers' index dropped to 51.8 from 52.2 in March.
Readings above 50.0 indicate an expansion on a monthly basis, while readings below signal contraction. The survey focuses on small- and medium-sized enterprises, while the official data tracks larger firms.
4. Fed speakers in focus
Market players looked ahead to a raft of speeches from Federal Reserve officials later in the day to judge the balance of opinion among policymakers on the prospect of further rate hikes.
St. Louis Fed President James Bullard is due to speak at 15:30GMT, or 11:30AM ET, at Santa Barbara County's Economic Summit. Then San Francisco Fed President John Williams is due to appear at the Hoover Institution's International Monetary Stability Conference.
Bullard and Williams also join a panel at the conference with Atlanta Fed President Dennis Lockhart and Dallas Fed President Rob Kaplan.
5. Global stocks mostly higher as oil prices rally
U.S. stock futures pointed to a higher open on Thursday, as traders looked ahead to the release of weekly initial jobless claims data and speeches from members of the Federal Reserve.
Elsewhere, European stock markets rose for the first time in five sessions, taking cues from a rally in oil prices.
Earlier, shares in Asia closed mixed in the wake of a reading on China's economy which showed growth in the services sector moderated last month.