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Top 5 Things to Know In the Market on Tuesday

Published 2016-11-29, 06:02 a/m
© Reuters.  5 key factors for the markets on Tuesday
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Investing.com - Here are the top five things you need to know in financial markets on Tuesday, November 29:

1. Global stocks mixed with eyes on OPEC and U.S. data

U.S. futures pointed to a flat to higher open on Tuesday suggesting a partial recovery of losses logged a day earlier while investors wait for the first major economic data of the week. At 5:59AM ET (10:59GMT), the blue-chip Dow futures gained 20 points, or 0.10%, S&P 500 futures edged forward 2 points, or 0.09%, and the Nasdaq 100 futures inched up 4 points, or 0.08%.

European stocks were mixed on Tuesday, as oil prices turned lower amid concerns ahead of a highly-anticipated OPEC meeting on Wednesday and as investors also remained cautious ahead of an Italian referendum this weekend.

Earlier, Asian equities closed with mixed signs on Tuesday and the Nikkei 225 ended slightly slower on the back of mixed Japanese data. The world’s third largest economy saw household spending unexpectedly slump in October, though retail sales slipped much less than forecast and the jobless rate came out in line with consensus.

2. OPEC jitters drive oil down

Oil prices were down around 2% on Tuesday as nerves continued to fray over the capability of OPEC to reach a meaningful deal to limit crude production at their official meeting on Wednesday, with experts insisting that short-term prices would hinge on the outcome.

The cartel’s technical committee was unable to reach a preliminary deal ahead late Monday with reports pointing to disagreements over Iran and Iraq’s production levels.

Furthermore, Russia confirmed Tuesday that it would not attend the official gathering in Vienna on Wednesday. Though Moscow does not belong to the cartel, there was some hope that reports that the Algerian and Venezuelan oil ministers who had traveled to the country’s capital on Monday could have persuaded collaboration.

U.S. crude oil futures slumped 2.02% to $46.13 at 6:01AM ET (11:01GMT), while Brent oil sank 1.99% to $48.23.

3. Econ data to move the session

The first major economic reports of the week were set for release on Tuesday, after a light calendar a day earlier.

The second estimate of third quarter gross domestic product (GDP) will be out at 8:30AM ET (13:30GMT) with consensus expecting a slight upward revision to 3.0% growth, from the initial reading of a 2.9% expansion.

Half an hour later, investors will gauge the S&P/Case-Shiller house price index for September to gauge the state of the real estate market.

Smack dab in the middle of the holiday season spending, the Conference Board will release its consumer confidence indicator for November at 10:00AM ET (15:00GMT).

4. Online sales show prosperous start to holiday season

After Black Friday showed record breaking online sales at the unofficial start of holiday season shopping, Cyber Monday also came through with what was unexpected to be all-time highs in revenue, according to Adobe Digital Insights (ADI).

As of 6:30PM (23:30GMT) Monday, ADI expected online sales to have grown by 10.2% on Cyber Monday to a record-breaking $3.39 billion.

Total online sales from the November 24 to 27 period had increased 7.1% year-on-year to reach $36.5 billion.

ADI was expected to update the final totals for Cyber Monday later in the day.

5. Italy stokes euro fears pushing single currency lower

The chance that Italy would decide to follow in the footsteps of the U.K. and leave the euro zone hit a four-year high, according to a Sentix survey.

Italy will hold a referendum on Sunday to determine if Prime Minister Mateo Renzi could go ahead with constitutional reform to the Senate in order to facilitate passing legislation.

Surveys largely point to a “no” vote that could end in Renzi’s resignation and give the opportunity to the anti-euro Five Star Movement populist group to take on a larger representation.

Concerns have recently spooked markets and served to put pressure on the euro Tuesday, leaving the single currency to lose ground against both the dollar and the pound on Tuesday.

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