Investing.com - Here are the top five things you need to know in financial markets on Wednesday, May 11:
1. Dollar halts 6-day rally
The U.S. dollar eased against a basket of currencies after six straight days of gains on Wednesday, falling to 93.99 after climbing to 94.33 a day earlier, which was the most since April 28.
The greenback fell back below the 109-level against the yen as investors locked in gains following its steep rise after continued comments about possible intervention by the Japanese government.
2. Oil under pressure ahead of EIA supply data
Oil prices gave back some gains on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose to a record high last week.
U.S. crude was down 36 cents, or 0.81%, to $44.30 a barrel by 9:55GMT, or 5:55AM ET, while Brent dipped 16 cents, or 0.35%, at $45.36.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 0.7 million barrels. After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 3.5 million barrels in the week ended May 6.
3. Global stocks mostly lower as weak oil prices dampen sentiment
U.S. stock futures pointed to a lower open on Wednesday, as market players kept an eye on movements in the oil market while awaiting a number of key earning reports that may shed further light on the health of the U.S. consumer.
Elsewhere, European stock markets traded lower for the first time in three sessions, dragged down by weakness in the banking sector, as sentiment was curbed by lower oil prices and a slew of disappointing corporate earnings.
Earlier, shares in Asia closed mostly lower, as the yen nudged higher against the dollar and oil prices retreated.
4. Gold bounces off 2-week lows to reclaim $1,270
Gold futures rallied nearly $10, or 1%, to $1,276.10 a troy ounce on Wednesday, after falling to the lowest level in almost two weeks overnight, as weakness in the U.S. dollar boosted the appeal of the precious metal.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
5. Disney off 5% in pre-market after rare earnings miss
Shares of Walt Disney Company (NYSE:DIS) lost more than 5% in pre-market trade on Wednesday, after the entertainment giant reported a rare miss after Tuesday’s closing bell as advertising and subscriptions declined at sports channel ESPN and theme park revenue came in weaker than expected.
Excluding some items, Disney earned $1.36 per share, missing analyst average expectation of $1.40 per share. Revenue rose to $12.97 billion from $12.46 billion, below the Wall Street target of $13.19 billion.