Breaking News

Top 5 Things to Know In the Market on Wednesday

EconomyMay 17, 2017 06:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. 5 key factors for the markets on Wednesday - Here are the top five things you need to know in financial markets on Wednesday, May 17:

1. Concerns over Trump dominate headlines

Capturing market headlines on Wednesday was the news that U.S. President Donald Trump asked back in February then FBI Director James Comey to halt an investigation into former National Security Adviser Michael Flynn’s ties with Russia.

The news raised concerns over whether Trump interfered with the judicial process and could be charged with accusations of obstruction.

After recent White House turmoil involving first Trump’s firing of Comey and then that the President later shared sensitive intelligence obtained from a close U.S. ally with Russia's foreign minister about an Islamic State operation, investors began to doubt that the Trump administration will be able to get a divided U.S. Congress to push through his economic stimulus program amid the political upheaval.

2. Fed rate hike bets continue to recede

With market participants considering that there will be further delays in any Trump policies for economic stimulus, odds for the next rate hike by the Federal Reserve (Fed) continued to slip lower.

According to’s Fed Rate Monitor Tool, Fed fund futures currently price in the chance of the first hike arriving in June at around 64%, after having risen above 80% the prior week.

Markets further became less convinced that the Fed would manage to complete the two rate hikes they had predicted for this year. Last week, odds had hovered around the 50% threshold but were now holding at just around 31%.

3. Dollar continues decline, gold strengthens on stimulus delay concerns

The dollar continued to decline Wednesday, hitting fresh six-month lows against major rivals, as the mounting political turmoil in the U.S. pushed expectations for monetary policy tightening back and weighed on the greenback.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 97.91 by 5:57AM ET (9:57GMT) after touching an overnight low of 97.76, the weakest since November 9.

Meanwhile, the weaker dollar and safe haven demand in the face of political uncertainty pushed gold to a two-week high on Wednesday.

Comex gold futures traded near its highest levels since May 3, rising $9.17, or about 0.7%, to $1,245.57 a troy ounce by 5:58AM ET (9:58GMT).

4. Global stocks shift to risk-off mode on Trump worries

Global stocks moved into risk-off mode on Wednesday, as mounting concerns over fresh U.S. political events continued to weigh heavily on market sentiment.

U.S. stock futures pointed to a lower open on Friday in what would be a session lacking in major economic reports. At 5:59AM ET (9:59GMT), the blue-chip Dow futures lost 0.49%, S&P 500 futures fell 0.53% and the Nasdaq 100 futures traded down 0.40%.

Elsewhere, European equities also moved broadly lower, contaminated by the risk-off attitude, with the benchmark Euro Stoxx 50 down 0.41% by 6:00AM ET (10:00GMT) and Germany’s DAX off 0.41%.

Earlier, Asian stocks closed lower with the Shanghai Composite recording losses of 0.26% and Japan’s Nikkei sliding 0.60%.

5. Oil slips on crude inventory build

Oil prices edged lower on Wednesday, moving further away from the strongest level in more than three weeks after industry data overnight showed a surprise increase in U.S. oil stockpiles.

After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by 882,000 barrels in the week ended May 12.

The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (14:30GMT) Wednesday amid expectations for a draw of 2.3 million barrels.

Oil had rallied to its highest since April 28 at $49.66 at the start of the week on news that Saudi Arabia and Russia agreed to extend oil output cuts for a further nine months until March 2018.

U.S. crude oil futures fell 0.21% to $48.56 at 6:02AM ET (10:02GMT), while Brent oil held steady at $51.65.

Top 5 Things to Know In the Market on Wednesday

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email