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Top 5 Things to Know In the Market on Wednesday

Published 02/10/2016, 05:48 AM
Updated 02/10/2016, 05:48 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, February 10:

1. All eyes on Fed Chair Yellen’s congressional testimony

Federal Reserve Chair Janet Yellen is set to deliver her semi-annual monetary policy testimony in Washington later in the day, in what will be her first major appearance of the year and since the Fed's controversial rate hike last December.

Yellen is scheduled to testify on the economy before the House Financial Services Committee at 15:00GMT, or 10:00AM ET, Wednesday. Her comments will be released at 8:30AM ET, as investors seek further clarity on the pace of future interest rate hikes.

The Fed chief is expected to defend the U.S. central bank's first rate hike in a decade last December and likely insist that further rises this year remain on track, albeit at a slower pace.

2. Oil prices rebound from selloff

Oil prices pushed higher on Wednesday, partly recovering from an 8% drop in the previous session on concerns over demand and weak equities.

U.S. crude was up 54 cents, or 1.95%, at $28.48 a barrel by 10:50GMT, or 5:50AM ET, while Brent rose 51 cents, or 1.68%, to $30.83.

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 3.6 million barrels.

3. Japan stocks stumble to 16-month low

Japan's Nikkei, which tumbled 5.4% Tuesday, suffered another bruising session, falling 2.3% to close at the lowest since October 2014, with a stronger yen continuing to take a toll on sentiment.

Elsewhere in Asia, Australia’s benchmark index finished down 1.2% to enter bear market territory. Markets in Hong Kong and South Korea will reopen Thursday following a holiday, while markets in mainland China are closed for the whole week.

4. European stocks snap 7-day losing streak as banks shine

European stock markets rallied following a seven-session selloff on Wednesday, as investors picked up beaten down bank stocks.

Germany’s DAX 30 surged 2.5%, France’s CAC 40 jumped 2.6%, while London’s FTSE 100 rose 1.3%.

In individual stock news, Deutsche Bank (DE:DBKGn) shares jumped 11% on news the German bank is considering buying back billions of euros of its own bonds.

5. Dow futures rally triple-digits ahead of Yellen

U.S. stock markets pointed to strong gains at the open on Wednesday, with the Dow futures climbing more than 100 points, as appetite for riskier assets improved ahead of congressional testimony from Fed chair Janet Yellen.

The blue-chip Dow futures were up 135 points, or 0.85%, in early trade, the S&P 500 futures rose 21 points, or 1.11%, while the Nasdaq 100 futures jumped 59 points, or 1.5%.

U.S. stocks ended a volatile session slightly lower on Tuesday, as a late-day rally led by materials and healthcare shares offset another big drop in oil prices.

There is no major economic data scheduled for Wednesday.

In earnings news, Time Warner Inc (N:TWX), Humana (N:HUM), Owens Corning Inc (N:OC) and Carlyle Group (O:CG) are due to report quarterly results ahead of the opening bell. After the market closes, Twitter (N:TWTR), Tesla Motors (O:TSLA), Whole Foods Market Inc (O:WFM) and Cisco Systems (O:CSCO) are on the earnings docket.

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