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Top 5 Things to Know Today

Published 12/11/2015, 09:57 pm
Updated 12/11/2015, 10:08 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. Dovish Draghi hints at further stimulus again

European Central Bank President Mario Draghi hinted at further monetary easing in December, sending the euro lower against the dollar and pound.

Addressing the European parliament's Economic and Monetary Affairs Committee Thursday, Draghi said that "downside risks stemming from global growth and trade are clearly visible" in the euro zone.

In October, Draghi indicated that the bank could enlarge its monetary stimulus program next month to combat persistently low levels of inflation in the single currency bloc.

2. Fed speakers hold center stage

A host of Federal Reserve officials, including Janet Yellen, are slated to make appearances at the U.S. central bank's two-day conference on Monetary Policy Implementation and Transmission in the Post-Crisis period.

The Fed chief is scheduled to make the opening remarks on Thursday morning, while Fed chair Stanley Fischer is scheduled to deliver a speech on the transmission of exchange rates to output and inflation on Thursday evening.

Other Fed members speaking Thursday include, New York Fed President William Dudley, St. Louis Fed President James Bullard, Richmond Fed President Jeffrey Lacker and Chicago Fed President Charles Evans.

In recent weeks, Fed officials have talked up their intention to hike key interest rates in December.

3. U.S. data eyed

The U.S. is to release a weekly report on initial jobless claims at 8:30AM Eastern Time Thursday, followed by data on job openings for September at 10:00AM ET.

Fed Chair Janet Yellen said last week that a December rate hike was a "live possibility" if justified by upcoming economic data.

The likelihood of a December interest rate increase by the Fed surged to 70%, according to Fed funds futures data from the CME Group (O:CME), after data showing the U.S. economy created more jobs than expected in October.

4. Global stocks mostly lower with China, Fed in focus

Asian stock markets were mostly lower on Thursday, as weak commodity prices, the possibility of higher borrowing costs in the U.S. and slower global economic growth haunted riskier assets.

In Europe, equity markets briefly turned positive after European Central Bank President Mario Draghi hinted at more monetary easing, but disappointing corporate earnings weighed.

Meanwhile, U.S. stock futures were modestly lower, suggesting a weak opening on Wall Street later in the day.

5. Rate hike expectations batter commodities

Gold, copper and oil prices struggled near recent lows on Thursday, as the U.S. dollar held near seven-month highs against a basket of six other major currencies amid expectations for tighter monetary policy in the U.S. in the coming months.

A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.

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