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Top 5 Things to Know In the Market on Monday

Published 21/12/2015, 10:19 pm
© Reuters.  Top 5 Things to Know Today In Financial Markets
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Investing.com - Here are the top five things you need to know today in financial markets:

1. Brent oil sinks to lowest level since July 2004

Brent oil sank to the lowest level since July 2004 on Monday, as ongoing jitters over a global supply glut drove down prices.

London-traded Brent was last down 30 cents, or 0.81%, to trade at $36.58 a barrel as of 6:05AM ET. It earlier fell to $36.05, a level not seen in more than 11 years.

U.S. crude was last down 29 cents, or 0.79%, to $35.77 a barrel, after falling to $34.29 on Friday, the lowest since February 2009.

2. Spanish assets take a hit

Spanish shares slid on Monday, while 10-year government bond yields rose almost 20 basis points to 1.886%, the highest in over a month, after general elections over the weekend left no party as clear winner, raising fears of political instability.

Prime Minister Mariano Rajoy's conservative Popular Party won more seats than any other party but fell well short of a majority. Left-wing parties failed to win a clear mandate to govern either, and talks to form a coalition government could drag on for weeks.

3. Global stocks mostly higher as Christmas countdown begins

Global stock markets were mostly higher on Monday, as market players start to wind down for the last few trading days before the Christmas holiday.

Most Asian equities ended in the green, with China's Shanghai Composite surging 1.8%, amid expectations Beijing would introduce measures to help boost the country’s flagging property sector.

The upbeat sentiment spilled over to Europe, where Germany's DAX climbed 1.1%. Meanwhile, U.S. stock futures were up between 0.8% and 0.9%, suggesting a stronger open on Wall Street later in the day.

U.S. stocks plunged on Friday, as concerns, ranging from a decline in crude oil prices to the global response to the Federal Reserve's interest hike, weighed down the market. Options expiration also contributed to volatility.

4. U.S. dollar little changed in quiet trade

The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 98.75, off last week's two-week peak of 99.33.

The dollar weakened amid skepticism over the Federal Reserve's ability to raise interest rates as much as it would like next year.

Trading volumes are expected to remain light in the coming days due to the Christmas holiday and as many traders already closed books before the end of the year, reducing liquidity in the market and increasing volatility.

5. Blatter, Platini banned by FIFA for eight years

Suspended FIFA President Sepp Blatter and European soccer boss Michel Platini were both banned from soccer for eight years on Monday by the Ethics Committee of football's global governing body.

The move is likely to be welcomed by top sponsors Adidas (DE:ADSGN), McDonald's (N:MCD), Coke (N:KO) and Visa (N:V) which have all called for more transparency and credible reforms at soccer's governing body.

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