Investing.com – Here are the top five things you need to know about the financial markets on Thursday 6 December:
1. Huawei Arrest Spooks Markets
Meng Wanzhou, financial director of the Chinese smartphone company Huawei and daughter of its founder, following an extradition request from the United States, his arrest is linked to an investigation to ascertain whether he had violated the sanctions against # 39; Iran.
China criticized the United States and Canada for arrest and called for its immediate release.
The news of the arrest, less than a week after US President Donald Trump and his Chinese counterpart Xi Jinping accepted a 90-day commercial truce, threatened to reignite the trade clash between the two largest economies of the world.
Initially, the market sentiment had been favored by the commercial ceasefire, but the mood quickly tightened on skepticism that the two parties could reach substantial agreement within the 90-day timeframe.
2. US futures indicate a sharp decline in openness
US stock futures pointed to an opening markedly lower than Wall Street, with a collapse of over 450 points for US-Sino relations and a possible economic slowdown in the United States.
At 5:45 AM ET (1035GMT), the Dow blue-chip futures fell about 480 points, or about 1.9%, the 49 points lost, or 1.85%, while the tech-heavy lost 167 points, or 2.46%.
Losses occurred as US equity and Treasury markets reopened after they were closed Wednesday following the death of former President George H.W. Bush.
On Tuesday, they dropped by nearly 800 points, his biggest one-day decline since October 10th.
Concerns of a US economic slowdown hit markets this week after a series of concerns about the US economic weakness. A flat curve is seen as an indicator of a slowing economy.
3. Sliding oil prices before OPEC meeting
Oil prices fell as a result of reports that the Saudi energy minister of Saudi Arabia has proposed a lower production cut than expected at the next OPEC meeting.
futures fell $ 2.40, or 3.91%, to $ 59.15 a barrel, while the WTI stood at $ 50.88 a barrel, down $ 2.03, or about 3.89%.
Oil ministers (OPEC), Russia and other major producing countries will meet in Vienna on Thursday and Friday to review their current production agreement, with a decision due to expire on Friday.
OPEC officials have made public statements increasingly common that the cartel and its partners would begin to hold back crude oil in 2019 to increase supply and sustain prices.
According to recent reports, OPEC and its allies are working towards an agreement to reduce oil production by at least 1.3 million barrels per day (bpd).
In addition to OPEC, even new weekly US data will capture the market's attention. L & # 39; U.S. Energy Information Administration will release its weekly report on oil supplies for the week ending November 30th at 11:00 AM ET (16:00 GMT). He comes out a day later than usual because of Wednesday's national day of mourning.
4. ADP, ISM and US requests for unemployment benefits on tap
Investors will pay close attention to private sector employment numbers before Friday's non-farm wage report.
The payroll numbers of the private sector ADP leave at 8:15 ET ET (12:15 GMT). On average, economists expect November payrolls to come in, below 227,000 the previous month.
The weekly numbers of unemployment benefits will be published at 8:30 AM (12:30 GMT) and economists expect unemployment benefit claims for the first time to be reduced from 234,000 to the previous week.
At 10:00 AM ET (14:00 GMT), ISM will release its measure of November service activities. The non-ISM manufacturing PMI is expected to have passed last month from 60.3 in October.
5. The yen gains while increasing risk aversion
The yen strengthened as the demand for safe haven for the Japanese currency was strengthened by widespread risk aversion in the markets. The yen is often sought after by investors as a refuge during times of market turbulence or geopolitics.
fell 0.4% to 112.74 after falling to a low of 112.58 overnight, while it was 0.52% to 127.75.
The euro was a bit lower than the dollar, with a 0.12% decline to 1.1229 after the withdrawal from this week's high of 1.1419 climbed Tuesday.
The, which measures the strength of the greenback against a basket of six major currencies, has changed little to 97.06.
The pound was constant, with the last hands changing to 1,241 while investors were preparing for a December 11, among doubts about the passage of the vote.
– Reuters contributed to this report