Investing.com - Here are the top five things you need to know in financial markets on Friday, June 23:
1. Global stocks mixed as oil recovers
Global stocks were mixed Friday as oil struggled to recover from 10-month lows.
European equities traded lower on Friday, as investors digested a slew of mixed economic data. At 5:50AM ET (9:50GMT), the European benchmark Euro Stoxx 50 fell 0.31%, the DAX shed 0.27%, the CAC 40 traded down 0.26% while London's FTSE 100 lost 0.41%.
Earlier, Asian shares ended both the session and the week with slight gains as a rebound in tech stocks helped support sentiment. Japan’s Nikkei inched up 0.08%, while China’s Shanghai Composite gained 0.33%.
U.S. futures pointed to a flat open on the back of the continued recovery in tech stocks and a strong performance in the healthcare sector as it faces off with the Senate’s new bill to replace and repeal Obamacare, while investors looked ahead to economic data and appearances from central bankers. At 5:52AM GMT (9:52GMT), the blue-chip Dow futures slipped 0.01%, S&P 500 futures inched up 0.09%% and the Nasdaq 100 futures gained 0.10%.
Also to note, investors are expecting large volume on Friday as FTSE Russell rejigs its indices.
2. Oil recovers but still on track for fifth straight weekly decline
Oil managed to head higher on Friday but was still on track for weekly losses of 4%.
Crude looked to log its fifth straight weekly decline, under pressure from concerns the OPEC/non-OPEC agreement to cut production would be offset by increases from members exempt from the reduction as well as a continuous rise in output from U.S. shale.
The number of rigs drilling for oil in the U.S. has increased for 22 straight weeks with the latest figures due on Friday from oilfield services firm Baker Hughes as investors waited to see if recent price drops in crude will be enough to cause a re-think on drilling plans.
U.S. crude oil futures gained 0.30% to $42.87 at 5:53AM ET (9:53GMT), while Brent oil traded up 0.20% to $45.31.
3. Dollar under pressure as investors look ahead to U.S. data
The dollar was seeing selling pressure against major rivals on Friday as market players looked ahead to data points scheduled for release later in the session.
IHS Markit will release preliminary figures for June in both the manufacturing and services sectors at 9:45AM ET (13:45GMT).
A mere 15 minutes later, investors will gauge the real estate market with the publication of new home sales which were expected to have bounced back in May after a sharp decline the prior month.
At 5:54AM GMT (9:54GMT), the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.17% at 97.09.
4. Fed officials may help clarify policy path
Market participants will digest remarks from several Federal Reserve (Fed) policymakers throughout Friday as they look to gauge the future path of U.S. monetary policy in an economy marked by tepid inflation.
New York Fed president William Dudley will participate in a panel discussion organized by the Bank for International Settlements at 8:15AM ET (12:15GMT).
St. Louis Fed chief James Bullard was scheduled to discuss the U.S. economy and policy at a conference at 11:15AM ET (15:15GMT).
Cleveland Fed president Loretta Mester will be the keynote speaker at a summit on housing, human capital and inequality at 12:40PM ET (16:40GMT).
Fed governor Jerome Powell will participate in a symposium organized by the Chicago Fed at 2:15PM ET (18:15GMT).
Markets remained skeptical that the U.S. central bank would manage to hike rates for a third time this year with Fed fund futures not putting the odds near the 50% threshold until March 2018, according to Investing.com’s Fed Rate Monitor Tool
5. Slew of European data gives mixed read
European data released Friday gave a mixed read, leaning towards positive.
France’s economy grew faster than previously thought in the first three months of this year with growth unexpectedly revised up to 0.5%, from the prior 0.4%.
Purchasing managers’ indices gave mixed readings for June with manufacturing activity in both Germany and France beating consensus, but the service sector showing weaker-than-expected growth for euro area's largest economies.
The situation was the same for the euro zone as a whole, though IHS Markit pointed out that, despite the slowdown in growth in June, the private sector still registered its best quarterly expansion in more than six years.