Investing.com - Here are the top five things you need to know today in financial markets:
1. ECB in the spotlight
The ECB's latest interest rate decision is due at 12:45PM London time, or 7:45AM ET, with most of the focus likely to be on President Mario Draghi's press conference 45 minutes after the announcement.
The consensus is that the ECB will cut the deposit rate further into negative territory to -0.30% from -0.20%. Market analysts also expect the central bank to increase the size of its monthly quantitative easing program to €75 billion from the current €60 billion.
The euro was trading close to seven-and-a-half month lows against the dollar (EUR/USD) ahead of the decision.
2. Fed Chair Yellen goes to Congress
Federal Reserve Chair Janet Yellen will testify about monetary policy before Congress' Joint Economic Committee at 10:00AM ET later Thursday. She is expected to reinforce expectations that a December rate hike is likely.
On Wednesday, Yellen said that the Fed was on track to hike rates this month, citing "continued improvement in the labor market" and "confidence that inflation will move back to our 2% objective over the medium term."
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% to 100.40, re-approaching the prior session's eight-month peak of 100.54.
3. U.S. data in focus
The U.S. is to release a weekly report on initial jobless claims at 8:30AM ET Thursday, followed by the U.S. Institute of Supply Management's report on service sector growth for November at 10:00AM.
Also looming large is Friday's nonfarm payrolls report, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting. A strong payrolls report was likely to cement expectations for a Fed rate hike later this month.
4. Oil recovers on report of Saudi supply cut
Oil futures recovered on Thursday, with West Texas Intermediate prices reclaiming the $40-level as market players looked ahead to Friday's highly-anticipated OPEC meeting in Vienna.
Media reports said that Saudi Arabia, which has so far resisted pressure to waver from its no-cut policy, will propose a supply cut of 1 million barrels per day, as long as other producers like Iran, Iraq and Russia join them.
U.S. crude was last up 59 cents, or 1.46%, at $40.52 a barrel, while Brent rose 86 cents, or 2.02%, to $43.35.
5. Gold slumps to lowest since February 2010
Gold prices sank to the lowest level in almost six years on Thursday, amid mounting expectations that the Federal Reserve will raise interest rates at its December policy meeting.
Gold was down $3.90, or 0.37%, at $1,049.90 an ounce during early U.S. morning hours. It earlier fell to $1,045.40, a level not seen since February 2010.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.