Investing.com - Here are the top five things you need to know in financial markets on Wednesday, December 7:
1. Italian banks buoyed by bailout hopes
Shares in Banca Monte dei Paschi di Siena (MPS) (MI:BMPS), the oldest and most troubled of the Italian banks, soared more than 7% on Wednesday after Reuters reported that Rome could take a €2 billion ($2.15 billion) stake in the lender that would increase the government’s stake to 40%.
Italy’s La Stampa also reported that Rome was considering taking a €15 billion ($16.1 billion) loan from European authorities to shore up its financial sector, though the Italian Treasury later denied the report.
Italian banks led the advancers on the FTSE MIB, with the top three gaining more than 5%.
2. Global stocks breathe sigh of relief over Italian bank bailout report
European stocks traded sharply higher on Wednesday on relief over the reports that Italian banks would receive state aid, while investors also looked ahead to the European Central Bank’s (ECB) policy decision. Markets widely expect the ECB to extend its asset purchase program by around six months in its attempt to support the economy and drive inflation higher.
U.S. futures pointed to a slightly higher open on Wednesday as market participants eyed the euphoria in Europe and waited for the publication of the job openings and labor turnover survey (JOLTS) for October at 10:00AM ET (15:00GMT) and consumer credit for the same month at 3:00PM ET (20:00GMT).
At 5:58AM ET (10:58GMT), the blue-chip Dow futures gained 23 points, or 0.12%, S&P 500 futures inched up 1 point, or 0.03%, and the Nasdaq 100 futures edged forward 2 points, or 0.04%.
Earlier, Asian stocks closed mostly higher on Wednesday with the Nikkei bolstered by President-elect Donald Trump's announcement that Japan's Softbank Corp. (T:9984) would invest $50 billion in the U.S. and aim to create 50,000 jobs in the next four years.
3. Pfizer hit with record $106 million fine
The U.K.’s Competition and Markets Authority (CMA) fined Pfizer (NYSE:PFE) with a record £84.2 million ($106.3 million) fine for its part in driving up the cost of an epilepsy drug by as much as 2,600%.
“Extraordinary price rises have cost the NHS (National Health Service) and the taxpayer tens of millions of pounds,” the CMA said in its decision.
Pfizer used to market Epanutin itself but sold distribution rights to privately-held Flynn in September 2012.
The blue chip drugs giant rejected any wrongdoing and said it would appeal all aspects of the decision.
4. Oil holds steady ahead of inventories, producer meeting
OPEC and non-OPEC oil producers are scheduled to meet this Saturday in Vienna to agree details of the output cut, designed to reduce the global supply glut.
Nerves over whether the agreement will be effective held back larger gains after the American Petroleum Institute (API) reported late Tuesday a draw of 2.2 million barrels on crude stocks.
The Energy Information Administration will report official inventory data at 10:30AM ET (15:30GMT) amid expectations for a fall of 1.032 million barrels.
U.S. crude oil futures inched up 0.10% to $50.98 at 5:59AM ET (10:59GMT), while Brent oil edged forward 0.06% to $53.96.
5. EU antitrust regulator fines JP Morgan, HSBC and Credit Agricole for euribor rigging
The European Union’s (EU) antitrust regulator announced fines on Monday for JP Morgan (NYSE:JPM), HSBC (LON:HSBA) and Credit Agricole (PA:CAGR) for conspiring to rig the euribor rate.
“Banks have to respect EU competition rules just like any other company operating in the single market,” the regulator’s commissioner Margrethe Vestager said, adding that the three banks had manipulated the euribor rate for their own interests.
JP Morgan was fined €337.2 million ($361.5 million), Credit Agricole €114.7 million ($123.0 million) and HSBC €33.6 million ($36.0 million).
All three banks have rejected the allegations and suggested they may take the case to European courts.