Investing.com - Here are the top five things you need to know in financial markets on Thursday, November 24:
1. November Fed minutes, data cement rate hike bets
The minutes from the Federal Reserve’s November meeting released Wednesday showed officials believed an interest-rate increase was possible “relatively soon” as long as economic data continued to indicate that the economy is improving.
Some Fed officials explicitly called for a rate hike in December, arguing that the banks reputation could be put at risk by further delaying a rate increase.
Earlier Wednesday, data showed that U.S. orders for durable goods rose 4.8% in October from a month earlier, the fastest pace in a year.
Taken together, the minutes and the data largely reinforced market and analyst expectations for a Fed move in December.
According to Investing.com's Fed Rate Monitor Tool, odds for a rate hike at the Fed's December 13-14 meeting are now at 100%.
2. Dollar hits fresh 14-year highs
The dollar extended its powerful rally on Thursday, spurred on by expectations for higher interest rates, hitting the highest levels since April 2003 against a basket of currencies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 101.64, after earlier rising as high as 102.11.
The index has rallied more than 3% so far this month on December rate hike bets and expectations that increased U.S. fiscal spending under a Trump administration will spur economic growth and inflation, which would ultimately lead to an era of higher interest rates.
3. European stocks rise after record Wall Street highs
European stocks were slightly higher on Thursday, a day after Wall Street climbed to record highs for a third consecutive session.
The EURO STOXX 50 rose 0.14%, France’s CAC 40 added 0.22%, while Germany’s DAX 30 gained 0.14%.
In Asia, stock markets were mostly lower, but Japan’s Nikkei was up 0.9% as the weaker yen boosted shares of major exporters.
U.S. markets were to remain closed on Thursday for the Thanksgiving Day holiday.
4. Oil prices slightly higher in holiday-thinned trade
Oil prices edged higher on Thursday, but uncertainty over a planned OPEC-led output cut and the stronger dollar weighed.
U.S. crude oil was up 18 cents or 0.38% at $48.11 a barrel at 1118GMT, while global benchmark Brent futures were at $49.08 a barrel, up 13 cents or 0.29%.
Trade volumes were expected to remain light with U.S. markets closed for Thanksgiving.
5. German slowdown confirmed, business climate stable
Data on Thursday confirmed that German third quarter growth slowed to 0.2% as weak export growth acted as a drag on the economy.
German exports fell by 0.4% during the quarter, pointing to weakening global demand, while imports rose by 0.2%.
But another report showed that German business sentiment fell only slightly this month as the slowdown in third quarter growth didn’t seem to hit business confidence.
The Ifo Institute said its business climate index ticked down to 110.4 this month from 110.5 in October.