Top 5 Things to Know in the Market on Tuesday

Top 5 Things to Know About Financial Markets

Investing.com – Here are the five most important things you need to know in financial markets on Tuesday, November 7:

1. The global stock market rally shows no signs of slowing down

The global stock market rally showed no signs of slowing down, with indices around the world hitting their latest record highs as bullish investors continue to pile into stocks.

Asia-Pacific markets posted their best gains in a decade as investors digested earnings reports and U.S. President Donald Trump continued his tour of the region.

Among the notable highlights was Japan’s Nikkei, which rose 1.7% to its highest level since 1992. Australia’s S&P/ASX 200 rose 1% to its highest level since February 2008, helped by high commodity prices.

In Europe, most of the region’s stock exchanges recorded positive results in the morning, while the stagnant euro helped the export-oriented DAX index rise to a new record high.

On Wall Street, U.S. stocks looked poised to open little changed near their all-time highs as investors looked to key earnings reports to set the tone for markets. Wall Street’s three major indexes closed at record highs on Monday.

2. Oil prices remain close to July 2015 peaks.

Oil prices are at their highest level in more than two years, boosted by growing concerns about instability in Saudi Arabia, the world’s largest oil producer and most influential member of OPEC.

Brent crude futures, the benchmark for oil prices outside the U.S., fell 15 cents, or 0.3%, to $64.11 a barrel, just off an intraday peak of $64.65 that was its best level since July 2015.

Meanwhile, U.S. West Texas Intermediate (WTI) crude futures were unchanged at $57.36 a barrel, after rising to their highest level since mid-2015 when the price was $57.69.

Oil prices rose more than 3% on Monday, their biggest percentage gain in about six weeks, following a weekend purge in Saudi Arabia that saw the detention of senior officials and members of the royal family.

Looking ahead, the American Petroleum Institute is due to release its weekly supply report at 4:30 p.m. ET (21:30 GMT), amid forecasts for a decline in crude inventories of about 2.8 million barrels, which would be the second weekly decline in a row.

3. Dollar in Broad Attack; Euro Falls to Lowest Level Since July

The dollar enjoyed renewed demand, helped by a moderate rise in U.S. Treasury yields as investors continued to monitor progress on the U.S. tax bill, which, if passed, would be the biggest overhaul of the U.S. tax system since the 1980s.

The dollar index, which tracks the U.S. currency against a basket of six major currencies, rose almost 0.5%, briefly surpassing 95.00 for the first time since Oct. 27.

A stronger dollar pushed the euro to 1.1555, the single currency’s lowest level since mid-July. The euro’s losses accelerated as automatic selling programs were triggered after a break below 1.16.

4. US labor market data, Yellen in the spotlight

On Tuesday at 10:00 a.m. ET (15:00 GMT), relatively modest economic data on U.S. JOLTS jobs for September will be released.

On the central bank front, outgoing Federal Reserve Chair Janet Yellen will deliver the keynote address at the Paul H. Douglas Prize for Ethics in Public Administration, to be held in Washington at 2:30 p.m. Eastern Time (7:30 p.m. GMT).

Comments from Fed Vice Chairman for Supervision Randal Quarles will also be on the program. He will deliver a speech at The Clearing House’s annual conference in New York at about 12:30 PM ET (1730 GMT).

According to Investing.com’s Fed Rate Monitor Tool, the last monetary policy meeting of the year is scheduled for Dec. 12-13. Interest rate futures predict a 100 percent chance of a rate hike at that meeting.

5. US earnings season is coming to an end

Dozens of companies are expected to report their quarterly results today as the U.S. earnings season begins to draw to a close.

Valeant Pharmaceuticals (NYSE:VRX), Royal Caribbean Cruises (NYSE:RCL), Dean Foods (NYSE:DF), Tapestry (NYSE:TPR), SeaWorld (NYSE:SEAS), and Mallinckrodt (NYSE:MNK) are just a few of the names that posted results before the start of the session.

After the close of trading, Snap (NYSE:SNAP), Marriott International (NASDAQ:MAR), Zillow (NASDAQ:ZG), Fossil (NASDAQ:FOSL), Zynga (NASDAQ:ZNGA), Match Group (NASDAQ:MTCH), and Blue Buffalo Pet Products (NASDAQ:BUFF) are scheduled to report their earnings results.

More than 80% of the S&P 500 companies have reported quarterly results. About 73% of those companies beat earnings expectations and 65% beat sales estimates, according to Thomson Reuters I/B/E/S.

Top 5 Things to Know in the Market on Tuesday

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