Investing.com - Here are the top five things you need to know in financial markets on Tuesday, May 17:
1. Oil prices trade at 7-month highs
Oil prices rose to fresh seven-month highs on Tuesday, adding to sharp overnight gains amid mounting concerns over global supply disruptions.
U.S. crude rallied to a session high of $48.42 a barrel, the most since October 13. It last stood at $47.87 by 9:55GMT, or 5:55AM ET, up 15 cents, or 0.31%. Meanwhile, Brent dipped 6 cents, or 0.12%, to $48.91, after touching $49.47.
Oil prices have been well-supported in recent sessions due to a combination of Nigerian, Libyan and Venezuelan supply outages, declining U.S. shale output and reduced production of Canadian crude as a result of fires in Alberta's oil sands region.
2. Global stocks rise as oil nears $50
U.S. stock futures pointed to a modestly higher open on Tuesday, as market players kept an eye on movements in the oil market while awaiting key economic data and a number of earning reports from the likes of Home Depot (NYSE:HD) and TJX Companies Inc (NYSE:TJX).
Elsewhere, European stock markets rose for the third consecutive session with energy stocks leading the way as oil prices hit fresh highs for the year so far.
Earlier, shares in Asia closed mostly higher, after a rebound in technology giant Apple (NASDAQ:AAPL) and oil price gains boosted Wall Street.
3. U.S. inflation data due ahead of the bell
The Commerce Department will publish April inflation figures at 12:30GMT, or 8:30AM ET, Tuesday. Market analysts expect consumer prices to inch up 0.3%, while core inflation is forecast to increase 0.2%.
On a yearly base, core CPI is projected to climb 2.1%. Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.
Rising inflation would be a catalyst to push the Federal Reserve toward raising interest rates.
Besides inflation, the U.S. is to produce reports on housing starts and building permits at 12:30GMT, or 8:30AM ET, while industrial production and capacity utilization are due at 13:15GMT, or 9:15AM ET.
4. Fed speakers in focus
There are also several Federal Reserve speakers on deck for Tuesday. San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart will discuss the economy at a Politico event in Washington, D.C. at 16:00GMT, or 12:00PM ET.
Later, Dallas Fed President Rob Kaplan will moderate a Q&A at a Fed community forum in Midland, Texas at 17:15GMT, or 1:15PM ET.
Meanwhile, Fed Chair Janet Yellen will give a speech to the World Affairs Council in Philadelphia on June 6, just before the blackout period for the June 15 FOMC meeting. The announcement fueled speculation the Fed chief may try to firm up a message for markets ahead of the June policy meeting.
5. U.K. inflation weakens unexpectedly in April
U.K. inflation slipped in April for the first time since September last year, reflecting a drop in airfares after a March surge around the Easter holidays disappeared, as well as lower clothing prices.
The rate fell to 0.3% from 0.5% in March, the Office for National Statistics said in London on Tuesday, highlighting the struggle Bank of England policy makers face to revive price growth.
Inflation has been below the BOE’s 2% target for more than two years, largely due to lower oil costs and a stronger pound.