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Top 5 Things to Know Today

Published 18/11/2015, 10:02 pm
© Reuters.  5 things everyone in financial markets will be talking about today
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Investing.com - Here are the top five things you need to know today in financial markets:

1. Global shares fall as French police raid terrorist hideout

Global stock markets declined on Wednesday as investors remained cautious amid news of a police raid on a suspected terrorist hideout in Paris in which two people were killed and seven arrested.

Asian stocks ended mostly lower, as another bomb scare in Europe overnight hurt risk appetite.

European equities were down almost 1%, as investor confidence weakened amid news police in Paris carried out a raid connected to last week’s terror attacks.

Meanwhile, U.S. stock futures were down 0.2%, suggesting a weak opening on Wall Street later in the day. Wall Street gave up gains on Tuesday after a soccer match between Germany and the Netherlands was called off over fears of a bombing.

2. Investors await Fed FOMC minutes

Investors will be focusing on minutes of the October Federal Reserve meeting due on Wednesday at 2:00PM ET.

The Fed left interest rates unchanged following its meeting last month, as widely expected, but surprised the market with a hawkish statement, which included a direct reference to its next policy meeting.

Recent comments by Fed officials, including Janet Yellen, have bolstered expectations the U.S. central bank will raise interest rates for the first time in nearly a decade when it meets next month.

3. U.S. housing data for October

Market players looked ahead to reports on the U.S housing sector due at 8:30AM ET on Wednesday.

The Commerce Department is expected to report that building permits rose 3.1% to 1.150 million in October, while housing starts are forecast to decline 3.9% to 1.162 million.

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

4. Gold falls to fresh 5-1/2-year low

Gold prices fell to the lowest level since February 2010 on Wednesday, as investors braced for a hike in interest rates by the Federal Reserve next month.

Gold futures are nearly 10% lower from highs hit in mid-October as investors recalibrated their expectations of U.S. monetary policy in response to hawkish signals from the Fed.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

5. Oil prices push higher on bets for U.S. weekly supply drop

Oil prices pushed higher on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell for the first time in eight weeks last week.

The U.S. Energy Information Administration will release its weekly report on oil supplies at 10:30AM ET Wednesday. The data was expected to show that crude inventories rose by 1.9 million barrels last week.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories declined by 482,000 barrels in the week ended November 13.

U.S. crude was last up 60 cents, or 1.49%, to $41.27 a barrel, while Brent rose 88 cents, or 2.02%, to $44.45 a barrel.

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