Investing.com - Here are the top five things you need to know in financial markets on Wednesday, February 3:
1. Oil prices battle back ahead of weekly supply data
West Texas Intermediate oil futures climbed back above the $30-level on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a slower pace than expected last week.
U.S. crude was up 50 cents, or 1.61%, at $30.38 a barrel by 11:05GMT, or 6:05AM ET, while Brent tacked on 50 cents, or 1.51%, to $33.22.
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 4.8 million barrels.
2. Asian stocks end sharply lower
Major Asian equities closed lower on Wednesday, as crude oil prices slid on rekindled oversupply fears and amid mounting concerns over global economic growth.
Japan's Nikkei 225 fell 3.15%, Hong Kong’s Hang Seng and Australia’s S&P/ASX 200 each lost 2.3%, while China’s Shanghai Composite finished down 0.4%.
3. European shares in the red for 3rd straight day
European stock markets were down more than 1% on Wednesday, on course for a third straight losing session, as oil price volatility and concerns over global economic growth remained in focus.
Germany’s DAX 30 lost 1.3%, France’s CAC 40 slid 0.7%, while London’s FTSE 100 dropped 0.8%.
4. Wall Street struggles for direction ahead of key data
U.S. stock market futures struggled for direction on Wednesday, as investors looked ahead to key U.S. data later in the day to gauge if the world's largest economy is strong enough to withstand further rate hikes this year.
The U.S. was to release the ADP jobs report for January at 13:15GMT, or 8:15AM ET, followed by the U.S. Institute of Supply Management’s report on service sector growth for January at 15:00GMT, or 10:00AM ET.
The blue-chip Dow futures fell 10 points, or 0.06%, the S&P 500 futures slumped 1 point, or 0.04%, while the tech-heavy Nasdaq 100 futures dropped 11 points, or 0.26%.
Wall Street plunged sharply on Tuesday as the prolonged downturn in oil prices continued to weigh. The Dow closed down 295 points, or 1.8%, while the S&P 500 fell 1.9%.
In earnings news, General Motors (N:GM), Comcast (O:CMCSA), Merck (N:MRK), GlaxoSmithKline (N:GSK), Humana (N:HUM) and Marathon Petroleum (N:MPC) are due to report quarterly results ahead of the opening bell. After the market closes, GoPro (O:GPRO), Yum! Brands (N:YUM) and Buffalo Wild Wings (O:BWLD) are on the earnings docket.
5. Syngenta agrees to $43 Billion ChemChina takeover
Swiss pesticide and seed company Syngenta AG (VX:SYNN) soared 6% after Government-owned China National Chemical agreed to acquire the agribusiness company for $43 billion.
In a statement Wednesday, Syngenta said the offer by the Chinese company amounted to $465 per share, plus a special dividend of $4.91 to be paid immediately before the deal’s closing.