Investing.com - Here are the top five things you need to know in financial markets on Tuesday, January 12:
1. Oil prices fall towards $30
Oil prices fell towards $30 a barrel on Tuesday, as ongoing worries over the health of China’s economy fueled concerns that a global supply glut may stick around for longer than anticipated.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Brent was last down 22 cents, or 0.71%, at $31.66, as of 10:35 GMT, or 5:35AM ET, after sinking to a session low of $30.77, a level not seen since April 2004.
U.S. crude fell to $30.42, the lowest level since December 2003, before recovering to $31.06, down 35 cents, or 1.1%.
2. China stocks recover, while Nikkei sinks
Chinese stocks markets recovered in choppy trade on Tuesday, as the yuan stabilized for the third straight day. Chinese authorities fixed the yuan at 6.5628 per U.S. dollar (USD/CNY), similar to Monday’s fix of 6.5626.
The rest of Asia closed mostly lower, amid sliding oil prices. Japan’s Nikkei 225 ended at the lowest level in a year, while markets in Hong Kong and Australia both closed in the red.
3. Europe and U.S. markets look to shake off latest slide in oil
European shares rallied on Tuesday, with Germany’s DAX rising 2% as investors chose to ignore the downward trend in oil futures.
Elsewhere, U.S. stock futures were up between 0.5% and 0.6%, suggesting a strong open on Wall Street later in the day. U.S. markets closed mixed on Monday, as declines in commodity prices weighed.
4. Copper slides to new 6-1/2 year low
Copper fell to a new six-year low on Tuesday, as investors continued to cut holdings of the red metal amid persistent worries about future demand from top consumer China.
Prices of the red metal are down nearly 8% so far in 2016 as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
5. British pound plunges after weak data
The pound fell to fresh five-year lows against the U.S. dollar on Tuesday, after data showed that U.K. industrial and manufacturing production dropped sharply in November, adding to evidence that the economy slowed down toward the end of last year.
Sterling has been under pressure in recent days due to waning expectations of a rate hike by the Bank of England as well as uncertainty over a referendum on whether or not Britain should stay in the European Union.