Investing.com - Here are the top five things you need to know in financial markets on Tuesday, April 5:
1. Dollar tumbles to 17-month low against the yen
The dollar fell to its lowest level in 17 months against the safe-haven yen on Tuesday, prompting speculation over a possible intervention to halt the appreciation of the Japanese currency.
USD/JPY hit lows of 110.30, the weakest level since October 31, 2014 and was last at 110.38 by 9:56GMT, or 5:56AM ET, off 0.86% for the day. The pair has fallen more than 8% so far this year.
The yen’s gains fueled speculation over how much higher the currency can climb before Japanese officials act to weaken the currency.
2. Oil sinks to 4-week lows
Oil prices extended losses from the prior session on Tuesday, falling to fresh four-week lows as investors are starting to doubt whether there will be an agreement between top oil producers of a coordinated freeze at a meeting in Doha, set to take place on April 17.
U.S. crude was down 24 cents, or 0.67%, to $35.46 a barrel, while Brent shed 31 cents, or 0.82%, at $37.38.
3. Global stock markets slammed
European stocks were deep in negative territory on Tuesday, with Germany’s DAX down more than 2.5%, as a decline in oil prices weighed on investor sentiment and dragged down resource companies.
Meanwhile, U.S. stock futures pointed to a sharply lower open, with the Dow futures falling more than 120 points, amid mixed messages from Federal Reserve policymakers on the outlook for U.S. interest rate rises and as market players awaited service sector data due later in the session.
Earlier, markets in Asia closed mostly lower following losses in U.S. equities overnight amid fresh declines in oil prices.
4. Allergan (NYSE:AGN_pa) shares plummet 20% in pre-market
Shares of Allergan Plc (NYSE:AGN) plunged 22.5% to $215.00 ahead of the opening bell, following news of the U.S. Treasury Department's new steps to curb tax-avoiding inversion deals in which a U.S. company reincorporates overseas after the purchase of a foreign company.
Dublin-based Allergan has agreed to be bought by Pfizer (NYSE:PFE) in the biggest inversion deal ever. Shares of Pfizer were up 2.9% at $31.62 in pre-market trading.
5. Central bank roundup: India, Australia
The Reserve Bank of India cut its benchmark interest rate by 25 basis points to 6.5%, the lowest since January 2011, in a widely anticipated move. The RBI hinted at another rate cut later this year if inflation trends stay benign.
Elsewhere, Australia's central bank left interest rates at a record-low 2.0%, where they have been for nearly a year, citing evidence of continued growth at home despite an unhelpful rise in the local dollar.