Investing.com - Here are the top five things you need to know in financial markets on Thursday, March 31:
1. S&P downgrades China credit outlook to negative from stable
Standard & Poor's Ratings Services on Thursday cut its outlook on China to negative from stable, saying the country's "economic rebalancing" is likely to progress more slowly than expected.
S&P kept its AA- rating on China, arguing the country's government is taking steps to bolster its economy.
2. Euro zone remains stuck in deflation
Consumer price inflation in the euro zone in March remained in negative territory for the second consecutive month, underlining concerns over the threat of deflation in the region, official preliminary data showed on Thursday.
Eurostat said consumer price inflation fell by 0.1% this month, in line with expectations and following a decline of 0.2% in February.
3. Oil below $38 on glut concerns
Oil prices were under pressure on Thursday, with the U.S. benchmark slumping to a more than two-week low after data showed that domestic oil supplies rose to an all-time high last week and following a report showing that OPEC output increased in March.
U.S. crude was down 77 cents, or 1.94%, to $39.02, by 10:00GMT, or 6:00AM ET, while Brent shed 74 cents, or 1.83%, at $39.73 a barrel.
For March, U.S. oil was on track for its best monthly gain since April last year, while Brent was looking at a 9.5% rise, also the biggest gain in almost a year.
4. Gold on track for best quarterly gain since 1986
Gold prices are on track for a first quarter gain of more than 15%, its best quarterly performance since the third quarter of 1986, as investors seek safe havens in the face of mounting instability in other financial markets and as fears over a China-led global economic slowdown make it tougher for the Federal Reserve to raise rates.
5. U.S. data, Fed speakers in focus
The U.S. was to release the weekly report on initial jobless claims at 13:30GMT, or 8:30AM ET Thursday, followed by data on business activity in the Chicago region at 14:45GMT or 9:45AM ET.
Meanwhile, Chicago Fed President Charles Evans, San Francisco Fed President John Williams and New York Fed President William Dudley are due to speak throughout the day, as investors look to further judge the balance of opinion among policymakers on the prospect of further rate hikes.
Market players are also focusing on Friday's U.S. nonfarm payrolls report. The consensus forecast is that the data will also show jobs growth of 205,000 in March, the unemployment rate is forecast to hold steady at 4.9%, while average hourly earnings are expected to rise 0.2%.
An upbeat employment report would help support the case for the Fed to steadily tighten monetary policy this year.