Investing.com - Here are the top five things you need to know in financial markets on Tuesday, February 2:
1. Oil prices sink to 1-week low
Oil prices fell sharply to hit a one-week low on Tuesday, as investors worried that a huge oversupply in crude was coinciding with a global economic slowdown, especially in China.
Brent slumped $1.22, or 3.55%, to $33.02 a barrel by 11:05GMT, or 6:05AM ET, while U.S. crude was down $1.06, or 3.35%, at $30.56.
A day earlier, oil plunged as much as 7%, amid doubts over the likelihood of a deal between Russia and OPEC producers to cut output happening anytime soon.
2. Asian stocks end mostly lower amid weak oil prices
Major Asian equities closed mostly lower on Tuesday, as crude oil prices slid on rekindled oversupply fears and amid mounting concerns over global economic growth.
Japan's Nikkei 225 fell 0.65% as investors locked in profits after two straight days of big gains following the Bank of Japan's decision to introduce negative interest rates late last week.
On the upside, China’s Shanghai Composite finished up 2.3%, after the country’s central bank injected more liquidity into the financial system ahead of the week-long Lunar New Year holiday that starts February 7.
3. European shares in the red for 2nd straight day
European stock markets were down more than 1% on Tuesday, on course for a second straight losing session, as weak oil prices and disappointing corporate earnings from BP (L:BP) and UBS (VX:UBSG) weighed.
Germany’s DAX 30 lost 1.3%, France’s CAC 40 slid 1.9%, while London’s FTSE 100 dropped 1.7%.
4. Wall Street points to heavy losses; Dow futures down 120 points
U.S. stock markets pointed to heavy losses at the open on Tuesday, as concerns surrounding global growth and weak oil prices continued to grip markets.
The blue-chip Dow futures fell 120 points, or 0.74%, the S&P 500 futures slumped 16 points, or 0.82%, while the tech-heavy Nasdaq 100 futures dropped 42 points, or 0.96%.
In earnings news, Exxon Mobil (N:XOM), UPS (N:UPS), Dow Chemical (N:DOW), Archer-Daniels-Midland Company (N:ADM) and Pfizer Inc (N:PFE) are due to report quarterly results ahead of the opening bell. After the market closes, Yahoo (O:YHOO), Chipotle Mexican Grill Inc (N:CMG) and Gilead Sciences (O:GILD) are on the earnings docket.
Beyond data on U.S. auto sales for January, there are no top-tier U.S. economic reports due on Tuesday.
5. Euro zone unemployment rate falls to 4-year low in December
The euro zone’s unemployment rate fell to 10.4% from 10.5% in November. This is the lowest rate recorded in the euro area since September 2011. Analysts had expected the jobless rate to hold steady at 10.5% in December.
In Germany, the unemployment rate fell to an all-time low of 6.2% in January from 6.3% a month earlier.