Investing.com - Here are the top five things you need to know in financial markets on Tuesday, December 13.
1. Dollar steadies as Fed meeting looms
The dollar firmed up on Tuesday with the U.S. dollar index at 101.15, recovering from its weakest day in a week ahead of a Federal Reserve meeting ending on Wednesday.
The Fed is widely expected to hike rates; with investors pricing in a 100% chance of an increase, according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.
But investors remained cautious amid doubts over whether the U.S. central bank will indicate that more tightening is to follow in 2017.
2. Oil output cut deal could create supply deficit in first half IEA says
Global oil inventories could start to draw in the first half of 2017 if OPEC and non-OPEC producers follow through on an agreement to cut output, the International Energy Agency said Tuesday.
The agency’s monthly oil market report also said global oil demand will rise more strongly than expected this year and next year.
It lifted its forecast for global oil demand growth this year by 120,000 barrels per day to 1.4 million bpd and its forecast for 2017 by 110,000 bpd to 1.3 million bpd.
3. U.K. inflation jumps to 1.2%
The annual rate of inflation in the U.K. jumped to 1.2% in November, the highest level since October 2014 as the fall in the value of sterling since Britain’s vote to leave the European Union pushed up the price of imports.
Last month the Bank of England said that inflation could increase to around 2.8% by mid-2018.
The BoE is expected to keep interest rates on hold at its upcoming meeting on Thursday.
The pound ticked higher after the report, with GBP/USD up 0.2% at 1.2705 from 1.2693 earlier.
4. European markers boosted by Italy bank stocks
European stocks were buoyed by gains in Italian bank stocks after the country’s largest lender Unicredit (MI:CRDI) unveiled an aggressive restructuring plan.
The turnaround plan added to hopes that the ailing bank sector can get over its problems.
Germany's DAX was up 0.86%, London’s FTSE 100 rose 0.52%, Italy’s FTSE MIB advanced 1.92% and France’s CAC 40 added 0.81%.
5. U.S. futures point to higher open on Wall Street
Wall Street futures pointed to higher open for the major U.S. indexes.
The Dow futures were up 72 points or 0.37%, S&P 500 futures rose 6.75 points or 0.30%, while the tech-heavy Nasdaq 100 futures added 17.87 points or 0.36%.
There were no major U.S. economic reports scheduled for release on Tuesday.