Here are the top five things you need to know in financial markets on Wednesday, April 6:
1. Oil jumps on surprise stockpile decline amid speculation on output freeze
The American Petroleum Institute said on Tuesday that crude oil stockpiles fell by 4.3 million barrels at the end of last week, surprising analysts who were looking for a build of 2.9 million barrels.
Market participants will pay close attention to the U.S: Energy Information Administration’s weekly inventories report on Wednesday with experts looking for a build of 3.15 million barrels to a new record high.
Meanwhile, traders continued to digest information surrounding the possible agreement on a production freeze at an April 17 meeting of oil producers in Doha.
Kuwait’s OPEC governor Nawal Al-Fuzaia said on Tuesday that an initial agreement would be reached and dismissed the importance of Iran’s intention to increase production to its pre-sanction levels of four million barrels per day, a target the Iranian oil minister Bijan Namdar Zanganeh said the country would reach by March 2017.
U.S. crude oil futures rose 2.59% to $36.82 at 11:03AM GMT, or 7:03AM ET, while Brent oil traded up 1.85% to $38.57.
2. China services sector activity strengthens
The Caixin China general services PMI expanded at a faster pace than was expected, although the employment component registered its first contraction since August 2013.
Nonetheless, the data indicated the fastest economic growth for China in 11 months, reducing concerns over a slowdown in the world’s second largest economy.
3. Clues from Fed in the spotlight
Investors will sift through the details of the last meeting of the Federal Reserve (Fed) when the minutes are released on Wednesday at 18:00GMT, or 14:00ET, searching for more details on the U.S. central bank’s position on the future path of rate hikes and hints on the degree of discord between hawkish and dovish officials.
Cleveland Fed president Loretta Mester, one of the more hawkish members, will be giving a speech to the Cleveland Association of Business Economics at 16:20GMT, or 12:20ET.
St. Louis Fed chief James Bullard and Dallas Fed president Robert Kaplan were also scheduled to make appearances after the market close.
4. Japan’s intervention in currency markets remains verbal
The dollar was hovering near 17-month lows against the yen after Japan’s Prime Minister Shinzo Abe told the Wall Street Journal on Tuesday that countries should not attempt to weaken their currencies with “arbitrary intervention”.
However, Japanese government spokesman Yoshihide Suga repeated that they are monitoring markets closely and will respond if necessary.
5. Global stocks see mixed trade; Asia broadly lower, but Europe and U.S. trade up
The Nikkei 225 closed down 0.25% and Dow Jones Shanghai lost 0.49% as the China services PMI reading kept losses from reaching the levels of the sharp decline in the U.S. The S&P/ASX All Australian 200 managed to gain 0.44%.
At 11:01AM GMT, or 7:01AM ET, European stocks markets moved higher with the European benchmark Euro Stoxx 50 trading up 0.36%, the DAX inching up 0.02%, the CAC 40 advancing 0.55% and London's FTSE 100 adding 0.52%.
U.S. futures also reflected slight gains. Specifically, at 11:02AM GMT, or 7:02AM ET, the blue-chip Dow futures rose 0.27%, S&P 500 futures added 0.33% and the Nasdaq 100 futures gained 0.34%.