Investing.com - Here are the top five things you need to know in financial markets on Wednesday, December 14.
1. Countdown to Fed hike underway
Markets were awaiting the outcome of the Federal Reserve’s latest policy meeting later in the day with investors all but certain that the U.S. central bank will hike interest rates for the first time in a year.
With a rate hike fully priced in by markets investors will be focusing on the details of the Fed latest economic forecasts, the first since the U.S presidential election, for indications on the expected pace of rate hikes going forward.
A decision by the Fed not to raise rates would come as a major shock to financial markets.
2. Global stocks mostly lower, dollar dips
European stocks were broadly lower ahead of the Federal Reserve’s final meeting of the year, with Germany's DAX down 0.28%, London’s FTSE 100 slipping 0.16% and France’s CAC 40 down 0.65%.
Wall Street futures pointed to flat open for the major U.S. indexes a day after all three closed at record highs, for the sixth time since the U.S. election.
The Dow futures were down 12 points or 0.06%, S&P 500 futures slid 0.5 points or 0.02%, while the tech-heavy Nasdaq 100 futures were down 1.5 points or 0.02%.
The dollar edged lower against a basket of six other major currencies, with the U.S. dollar index at 100.94.
3. Oil prices hit by U.S. inventory build, output worries
Oil prices fell after the American Petroleum Institute said late Tuesday that U.S. crude oil inventories unexpectedly rose by 4.7 million barrels last week.
Prices came under additional pressure after the International Energy Agency said the Organization of the Petroleum Exporting Countries pumped oil at record levels in November, which could offset the effects of a planned production cut.
U.S crude was trading at $52.36 a barrel at 11.00 GMT, down 62 cents or 1.17% from its last close, while global benchmark Brent was at $55.13 a barrel, falling 58 cents or 1.04%.
4. U.S. retail sales, PPI data on tap
The U.S. is to release data on retail sales and producer prices at 08:30 ET, ahead of the Fed announcement.
Retail sales are forecast to have risen by 0.3% in November after a larger than expected 0.8% increase in October.
Consumer spending accounts for more than two-thirds of economic output in the U.S. and the holiday shopping season is the most crucial part of the year for many retailers’ profit margins.
5. Goldman to name Solomon, Schwartz to succeed Cohn
Goldman Sachs (NYSE:GS) is expected to appoint David Solomon and Harvey Schwartz to be co-second in command to Chief Executive Lloyd Blankfein, replacing executive Gary Cohn, who is leaving the bank to join the Trump administration, according to a report in the Wall Street Journal.
Cohn is leaving Goldman to become U.S. president-elect Donald Trump's chief economic adviser, heading up the White House National Economic Council.