Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Top 5 Things to Know in the Market on Wednesday

Published 11/01/2017, 05:14 AM
Updated 11/01/2017, 05:14 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, November 1:

1. Federal Reserve Decision Day

The Fed is not expected to take action on interest rates at the conclusion of its two-day policy meeting at 2:00PM ET (1800GMT), keeping it in a range between 1.0%-1.25%.

The central bank will likely point to a firming economy in its policy statement as it edges closer to a possible rate hike next month. The Fed's comments on inflation will also be in focus.

The policy decision takes place just before President Donald Trump names a new Fed chair on Thursday, with sources saying the pick to replace Janet Yellen when her term ends in February is going to be current Fed Governor Jerome Powell.

Powell is seen as being more dovish on monetary policy than other contenders for the post, especially compared to Stanford University economist John Taylor, who has been regarded as another top challenger for the position.

Besides the Fed, there is a batch of data on today's economic calendar, including the ADP jobs report at 8:15AM ET (1215GMT), manufacturing PMI at 9:45AM ET (1345GMT) and both ISM manufacturing data and construction data at 10AM ET (1400GMT). There are also car sales for October.

Investors also awaited tax reform details following news that Republican lawmakers will delay the release of tax legislation for a day, as they try to overcome differences involving the treatment of retirement savings accounts and state and local taxes, sources said.

The bill was initially expected on Wednesday, but the sources said it would be released on Thursday instead.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was a shade higher, while Treasury yields eased up.

2. Global Stock Markets Climb to New Highs

World shares started the month on a positive note to hit their latest in a run of record highs, supported by strong corporate earnings results and optimism about global growth.

Asian-Pacific markets ended higher. Among notable standouts, Japan's Nikkei soared 1.9% to reach fresh 21-year highs. Across the Korean Strait, South Korea's Kospi rose 1.3% to touch a fresh record high, boosted by gains in tech stocks.

In Europe, the pan-European Stoxx 600 jumped to a more than two-year high, with almost all sectors trading in positive territory, as investors focused on earnings reports.

On Wall Street, U.S. stocks pointed to a higher open, as investors looked to key earnings reports to set the tone for the markets. Wall Street's three major indexes ticked up on Tuesday to end October with their biggest monthly gains since February.

3. Facebook, Tesla Report Earnings

Traders braced for another round of earnings reports from big names such as Allergan (NYSE:AGN), Groupon (NASDAQ:GRPN), Sodastream (NASDAQ:SODA), Clorox (NYSE:CLX), Cognizant (NASDAQ:CTSH), New York Times (NYSE:NYT) and Thomson Reuters (NYSE:TRI), all due to post results ahead of the opening bell.

After the close, Facebook (NASDAQ:FB), Tesla (NASDAQ:TSLA), Qualcomm (NASDAQ:QCOM), Kraft Heinz (NASDAQ:KHC), Allstate (NYSE:ALL), FireEye (NASDAQ:FEYE), Fitbit (NYSE:FIT), GoPro (NASDAQ:GPRO) and Yelp (NYSE:YELP) are set to release earnings.

More than half of the S&P 500 has already reported quarterly results. Around 75% of those companies have surpassed earnings expectations, while 66% have surpassed sales estimates, according to Thomson Reuters I/B/E/S.

4. Oil Extends Rally Ahead of U.S. Stockpile Report

U.S. oil prices extended gains to trade above $55 a barrel, amid speculation weekly supply data due later in the session will show a sharp drop in both crude and gasoline inventories last week.

The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (1430GMT).

After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories fell by 5.1 million barrels in the week ended October 29. That compared with analysts' expectations for a decline of 1.8 million barrels.

The API report also showed a drop of 7.7 million barrels in gasoline stocks, while distillate stocks fell by 3.1 million barrels.

U.S. West Texas Intermediate (WTI) crude futures touched a session high of $55.22, a level not seen since early January. It was last at $55.05 in early trade, up 1.2%.

Meanwhile, Brent crude futures rose to an intraday peak of $61.70 a barrel, its best level since July 2015, boosted by signs that OPEC has significantly improved compliance with its pledged supply cuts.

5. Bitcoin Blasts to New All-Time High Above $6,500

Bitcoin prices hit a fresh all-time high, taking them above the $6,500-level, boosted by bets the cryptocurrency could enter the financial mainstream after CME Group (NASDAQ:CME), the world's largest derivatives exchange operator, said it would launch a futures contract for bitcoin later this year.

The digital currency rallied to a peak of $6,522, surpassing the previous record of $6,330 recorded late last month. Prices pulled back slightly to trade at $6,505.

Bitcoin has been on an absolute tear in 2017, rising over 500% against the dollar so far this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.