Oil slumps, the dollar slips, global stocks are lower and precious metals climb. Here are four things to know in the market today, August 10.
1. Oil Slides 1% Ahead of Supply Data
Oil prices slipped over 1% ahead of the weekly crude inventory data out of the U.S., which is due later in the session. Investors remain concerned about oversupply.
According to reports, Saudi Arabia pumped a record level of 10.67 million barrels per day last month to meet summer demand. Market players are also looking ahead to the monthly report from OPEC due later in the day, which will give insight into global supply and demand levels.
The U.S. Energy Information Administration will release its weekly report later this morning. Analysts expect stockpiles fell by 1.025 million barrels.
U.S. crude futures were down 1.24%, trading at $42.24. Brent oil was down 0.96% to $44.55.
2. The Dollar Slides Amid Dampened Rate Hike Expectations
The dollar slid against other major currencies as market players reassessed the prospects of the Federal Reserve raising rates before the end of the year.
Nonfarm labor productivity was down again for the third time, which dampened expectations of a rate hike.
3. Global Stocks Slide
Global stocks were broadly lower on Wednesday after disappointing productivity data out of the U.S.
Stocks in China, on Japan’s Nikkei and the Australian benchmark were all lower. Trading in Europe was cautious as well.
Futures in the U.S. pointed to slight gains, with Dow futures up 0.02%, Nasdaq 100 futures 0.04% higher and S&P 500 futures up 0.06%.
4. Precious Metals Rise
Gold and palladium rose on Wednesday as the U.S. dollar weakened. Gold was higher for the second straight day, while palladium reached its highest level in six years.
Palladium was up 8%, while gold climbed 1%.
A weaker dollar boosts gold, as the yellow metal is seen as an alternative asset.
