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Top 5 Things to Know In the Market on Wednesday

Published 01/27/2016, 06:21 AM
Updated 01/27/2016, 06:21 AM
© Reuters.  Top 5 Things to Know Today In Financial Markets

© Reuters. Top 5 Things to Know Today In Financial Markets

Investing.com - Here are the top five things you need to know in financial markets on Wednesday, January 27:

1. Fed decision day

The Federal Reserve is not expected to take action on interest rates at the conclusion of its two day policy meeting at 19:00GMT, or 2:00PM ET, on Wednesday, but it will be watched for any change in tone about the economy or future rate hikes.

Many in the market anticipate the pace of future increases to be gradual due to the recent turmoil in global financial markets, as well as concerns over tepid growth overseas and indications that U.S. economic growth stalled in the fourth quarter.

2. Oil prices head south again

Oil prices headed south again, as worries over a global supply glut overshadowed speculation that OPEC and non-OPEC producers may be edging closer to a deal to cut production.

U.S. crude was down $1.11, or 3.55%, to trade at $30.32 a barrel by 11:20GMT, or 6:20AM ET, while Brent shed 80 cents, or 2.46%, to $31.77.

The U.S. Energy Information Administration will release its weekly report on oil supplies at 15:30GMT, or 10:30AM ET, amid expectations for a gain of 3.3 million barrels.

After markets closed Tuesday, the American Petroleum Institute surprised market participants and said that U.S. oil inventories jumped by 11.4 million barrels in the week ended January 22.

3. China stocks close at new 13-month low

China stock markets were under pressure again on Wednesday, with the Shanghai Composite ending down 0.5% to close at a new 13-month low. The benchmark is down almost 23% month-to-date.

The rest of Asia closed mostly higher, inspired by strong overnight gains on Wall Street and a rebound in oil prices. Japan’s Nikkei 225 rallied 2.7%, while markets in Hong Kong and South Korea advanced 0.95% and 1.4% respectively.

4. European shares under pressure

European equities edged lower as investors kept a wary eye on oil prices while awaiting the outcome of the Federal Reserve meeting later in the day.

Germany’s DAX slid 0.8%, France’s CAC 40 lost 0.55%, while London’s FTSE 100 dropped 0.4%.

5. Wall Street points to lower open; Apple -4% after earnings

U.S. stock markets pointed to a lower open on Wednesday, as caution ahead of the Federal Reserve’s policy statement due later in the day and further weakness in oil prices dampened demand for riskier assets.

The blue-chip Dow futures shed 45 points, or 0.3%, as of 11:20GMT, or 6:20AM ET, the S&P 500 futures slumped 10 points, or 0.49%, while the tech-heavy Nasdaq 100 futures dropped 36 points, or 0.86%.

Apple (O:AAPL) was down 4% ahead of the bell after the company late Tuesday said iPhone sales grew at the slowest pace since the handset’s introduction in 2007.

The earnings season continues at full speed on Wednesday. Boeing (N:BA), United Technologies (N:UTX) and Biogen (O:BIIB) are slated to report ahead of the opening bell, while Facebook (O:FB), eBay (O:EBAY) and Qualcomm (O:QCOM) are due after the close.

On the data front, the U.S. is release data on new home sales at 15:00GMT, or 10:00AM ET.

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