Investing.com - Here are the top five things you need to know in financial markets on Monday, January 17:
1. Brent oil turns higher after falling below $28
Brent oil futures turned higher after falling below the $28-level on Monday, as international sanctions against Iran’s nuclear program were lifted over the weekend, opening the door to a wave of new oil and adding to concerns that a global glut will linger.
Analysts say the country could quickly ramp up exports by around 500,000 barrels. The surge in Iranian shipments is viewed as bearish for crude, which has fallen approximately 75% from its peak of $115 two summers ago, amid a glut of oversupply on markets worldwide.
Brent sank to a session low of $27.67 a barrel, a level not seen since October 2003, before recovering to trade at $29.09 by 11:05GMT, or 6:05AM ET, up 14 cents, or 0.5%.
U.S. crude rose 10 cents, or 0.35%, to $30.49 after falling to a daily low of $29.35, the weakest level since October 2003.
2. China stocks regain footing after Beijing acts on yuan
The People's Bank of China said Monday it is to start implementing a reserve requirement ratio on offshore banks' domestic deposits, a move intended to deter offshore speculators betting that the currency will continue to fall.
The PBOC also set a firmer mid-point rate for the yuan than on Friday. China's currency has fallen around 5% against the dollar since August, sparking fears that the slowdown in the world’s second-largest economy is deeper than had been feared.
The Shanghai Composite Index finished up 0.4%, after falling on Friday into bear market territory. The benchmark is down 17.7% this year.
The rest of Asia closed mostly lower, amid a renewed slide in oil prices and following an uninspiring handoff from Wall Street on Friday. Japan’s Nikkei 225 tumbled 1.1%, while Australia’s ASX 200 closed down 0.7%. Both benchmarks have lost roughly 19% from their recent highs, nearing bear-market territory.
3. Europe stock markets fluctuate near 1-year lows
European stock markets swung between small gains and losses on Monday, as a move by China’s central bank lent some support to market sentiment despite concerns over declining oil prices.
Germany’s DAX inched up 0.3%, France’s CAC 40 tacked on 0.25%, while London’s FTSE 100 gained 0.2% in volatile trade.
Markets have suffered one of the worst starts to the year on record, with European equities dropping to their lowest level since December 2014 on Friday.
4. U.S. stock futures rise
U.S. stock futures rose on Monday in a shortened session of trading, rebounding from lows seen on Friday when Wall Street slumped to levels not seen since August last year.
Stock futures will trade until 18:00GMT, or 1:00PM ET. U.S. stock and bond markets are closed Monday for the Martin Luther King Jr. holiday.
5. Dollar regains ground vs. rivals
The dollar regained ground against the other major currencies on Monday, after China’s central bank unveiled fresh measures to curb speculation and also guided the yuan higher.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% at 99.12.
USD/JPY rose 0.26% to 117.34, off overnight lows of 116.73 and Friday’s four-and-a-half month trough of 116.50, while EUR/USD fell 0.20% to trade at 1.0894.