Breaking News
0

Top 5 Things to Know in the Market on Wednesday

EconomyNov 08, 2017 05:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Top 5 Things to Know in the Market on Wednesday

Investing.com - Here are the top five things you need to know in financial markets on Wednesday, November 8:

1. Dollar Stalls Amid U.S. Tax Reform Jitters

The dollar steadied against other major currencies on Wednesday following reports that a key corporate tax cut currently under discussion in U.S. tax reforms plans could be delayed for one year.

The Washington Post reported on Tuesday that Senate Republican leaders are thinking of postponing the implementation of the major corporate tax cut to comply with Senate rules.

The U.S. dollar had been supported in recent session by hopes the U.S. administration's tax cuts could boost the economy. If enacted, the bill would be the biggest overhaul of the U.S. tax system since the 1980s.

It would also be the first major legislative achievement since Republicans took control of the White House and Congress in January, but doubts remain over the scale of borrowing needed to finance the bill and the timetable for its passage this month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 94.76 by 05:50 a.m. ET (09:50 GMT).

2. Crude Prices Weaken Ahead of Inventory Data

Official data from the Energy Information Administration was set to be released later Wednesday, amid forecasts for an oil-stock drop of around 2.8 million barrels, which would mark the second weekly decline in a row.

On Tuesday, the American Petroleum Institute said crude stockpiles declined by 1.6 million barrels in the week ending November 3, disappointing expectations for a drawback of 2.7 million barrels.

The U.S. West Texas Intermediate crude December contract was down12 cents or about 0.21% at $57.08a barrel by 05:50 a.m. ET (09:50 GMT), not far from Monday's two-year peak of $57.55.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London was steady at $63.69 a barrel, just off a two-year high of $64.42 hit on Tuesday.

Prices were also hit by data showing that China's oil imports dropped to 7.3 million million barrels per day (bpd) in October from an almost record-high of 9 bpd the previous month.

China is the world's second biggest oil consumer.

3. Trump Asia Tour Reignites Tensions With North Korea

In an address to the South Korean parliament on Wednesday, U.S. President Donald Trump addressed tensions with North Korea, saying that it "has interpreted America's past restraint as weakness."

"This would be a fatal miscalculation. This is a very different administration than the United States has had in the past," he added.

Trump arrived in South Korea on Tuesday after meeting with Japan Prime Minister Shinzo Abe over the weekend.

Donald Trump is the first U.S. president to speak before South Korea's parliament since Bill Clinton in 1993. The U.S. president is scheduled to continue his tour in China later on Wednesday.

4. Gold Benefits From Softer Dollar, Geopolitical Worries

Gold prices edged higher on Wednesday, as concerns over the implementation of a potential U.S. tax overhaul and especially its timing dampened demand for the dollar.

Meanwhile, safe-haven demand was also boosted by U.S. President Donald Trump's most recent comments on North Korea, saying that the U.S. would defend itself against Pyongyang's nuclear threat.

Markets were also jittery as Saudi Arabia over the weekend launched an anti-corruption purge among the highest levels of the establishment. In a separate event, the Saudi Kingdom accused Iran of being responsible for a ballistic missile attack carried out in Yemen, adding to local geopolitical tensions.

In addition, Lebanese Prime Minister Saad Hariri surprised markets on Saturday by announcing his resignation, citing assassination threats and blaming Iran for interference in Lebanon.

Comex gold futures were up 0.28% at $1,281.44 a troy ounce by 05:50 a.m. ET (09:50 GMT).

5. U.S. Earnings Season Continues to Wind Down

Dozens of companies are expected to release quarterly results today, as the U.S. earnings season begins to wind down.

AdvanSix Inc (NYSE:ASIX), Alaska Communications Systems (NASDAQ:ALSK), Command Security Corp, Global Partners LP (NYSE:GLP), AmpliPhi Biosciences Corp (NYSE:APHB) and InfoSonics Corp (NASDAQ:IFON) are a few of the names posting results ahead of the opening bell.

After the close, AmTrust Financial Services Inc (NASDAQ:AFSI), Athersys Inc (NASDAQ:ATHX), Biostage Inc (OTC:BSTG), BlackRock Kelso Capital Corporation (NASDAQ:BKCC), Corecivic Inc (NYSE:CXW), FibroGen Inc (NASDAQ:FGEN) and Infinera Corporation (NASDAQ:INFN) are set to release earnings.

More than 80% of the S&P 500 has already reported quarterly results. Around 73% of those companies have surpassed earnings expectations, while 65% have surpassed sales estimates, according to Thomson Reuters I/B/E/S.

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email