Investing.com - Here are the top five things you need to know today in financial markets:
1. China's manufacturing slumps to 3-year low
The official manufacturing purchasing managers' index declined to a three-year low of 49.6 in November from 49.8 a month earlier, according to the National Bureau of Statistics. Analysts had expected a reading of 49.8 last month.
Meanwhile, the Caixin manufacturing purchasing managers’ index for November rose to 48.6 from 48.3 in October. Despite the modest uptick, activity still contracted for the ninth straight month, fueling fears the economy may still be losing momentum despite a raft of stimulus measures in recent months.
The disappointing data reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support in coming months.
2. Global shares mostly higher on stimulus hopes
Global stock markets were mostly higher on Tuesday, as hopes for more stimulus in China and Europe boosted appetite for riskier assets.
Asian stocks rose, with Japan's Nikkei breaking above the 20,000-point mark for the first time since August 20.
In Europe, equities were little changed in lackluster trade as investors were hesitant to make major bets ahead of the European Central Bank's highly-anticipated policy meeting this week.
Meanwhile, U.S. stock futures were up 0.4%, suggesting a stronger opening on Wall Street later in the day.
3. British banks pass stress tests
All U.K.-based banks passed the country's annual stress tests, which measure the British banking sector's ability to handle global financial shocks.
Although none of the lenders will be required to submit a revised capital plan, Standard Chartered (L:STAN) and RBS (L:RBS) only passed the exam after taking steps to improve their capital ratios during the testing process. HSBC (L:HSBA), Barclays (L:BARC), Lloyds (L:LLOY), Santander (MC:SAN) and Nationwide were also included in the exercise.
4. Australian, Indian Central Banks Stick To Status Quo
The Australian and Indian central banks on Tuesday kept their benchmark interest rates unchanged ahead of an impending rate hike by the Federal Reserve later this month.
The Reserve Bank of Australia kept interest rates at its all-time low of 2.0% as an improvement in non-mining sectors and a robust labor market helped offset a decline in its vast mining sector.
In a separate announcement Tuesday, the Reserve Bank of India also kept its monetary policy steady at 6.75% amid uncertainty over inflation.
5. Euro zone unemployment rate falls to 4-year low
The euro zone’s unemployment rate fell to 10.7% in October from 10.8% a month earlier. This is the lowest rate recorded in the euro area since January 2012.
Meanwhile, Germany’s unemployment rate fell to an all-time low of 6.3% in November from 6.4% a month earlier, fueling optimism over the health of the region's economy.