Investing.com - Here are the top five things you need to know in financial markets on Monday, November 12:
1. Oil Prices Jump on Saudi Output Cut
Oil prices were in focus after top exporter Saudi Arabia said it will slash its crude shipments next month in order to rebalance markets.
Following a weekend meeting of OPEC producers in Abu Dhabi, Saudi Arabia's energy minister Khalid al-Falih said that Riyadh plans to reduce its oil supply to world markets by 500,000 barrels per day (bpd) in December.
An official from Kuwait, also an OPEC member, added that a broader output cut was debated, but a decision was postponed until the next full OPEC meeting, scheduled to take place in Vienna on December 6.
That helped lift oil prices off last week's multi-month lows, with U.S. crude gaining about 0.9% to $60.72 a barrel by 5:25AM ET (1025GMT) and Brent crude rising 1.5% to $71.24 per barrel.
The announcement comes as crude prices have fallen by around 20% since early October, buffeted by signs of growing output from key producers and indications that sanctions on Iran are unlikely to cut as much oil out of the market as initially expected.
2. U.S. Futures Point to Mixed Open
U.S. stock futures pointed to a mixed start to the trading week.
During early morning U.S. hours, the blue-chip Dow futures were down 38 points, or about 0.15%, the S&P 500 futures dipped 2 points, or around 0.1%, while the tech-heavy Nasdaq 100 futures indicated a gain of 10 points, or roughly 0.15%.
There are no notable earnings on Monday.
Big-name retailers such as Home Depot (NYSE:HD), Macy's (NYSE:M) and Walmart (NYSE:WMT) will be among the major companies reporting results in the week ahead, as the third-quarter earnings season begins to wind down.
Elsewhere, European stocks traded higher at the opening bell, but quickly slipped into negative territory as sentiment took a hit amid rising political risk in Italy and Britain.
Earlier, stocks in Asia were mixed, as investors remained wary over global growth prospects.
3. Fed Signals Boost Dollar to 17-Month High
Away from equities, the dollar was higher across the board, amid expectations for the Federal Reserve to keep raising interest rates in December and beyond.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.6% to 97.30, having earlier touched its strongest level since June 2017 at 97.41.
Demand for the dollar was underpinned after the Fed indicated last week that rates are likely to rise in December and again in early 2019, with the U.S. economy looking strong on almost every front.
Meantime, the U.S. bond market will stay closed Monday because of the Veterans Day holiday.
No major economic reports are expected this morning. The highlight of this week's data releases will come Wednesday, when the U.S. Commerce Department publishes October inflation figures.
4. Pound, Euro Sink Amid Brexit, Italy Woes
Staying in the currency market, the British pound and the euro were notably weaker as investors watched developments surrounding Brexit talks and Italy's ongoing budget drama.
The pound fell about 1% to 1.2840 (GBP/USD), the lowest since November 1, following reports that British Prime Minister Theresa May had cancelled a cabinet meeting planned for later Monday to approve a Brexit deal amid a growing rebellion in her cabinet over her plans for exiting the European Union.
All eyes are now on a cabinet meeting scheduled for Tuesday.
Meanwhile, the euro dropped 0.7% to 1.1255 (EUR/USD), a level last touched in June 2017.
The single currency remained on the back foot amid an ongoing row between Brussels and Rome after the European Commission rejected Italy's 2019 budget last month, because it was in breach of European fiscal rules.
Italy’s government has until Tuesday to submit a revised budget plan.
5. Alibaba Sets Singles' Day Sales Record
Alibaba (NYSE:BABA) smashed through last year's Singles Day sales record on Sunday, racking up more than $30.8 billion in the 24-hour shopping event. That topped the $25.3 billion record set in 2017.
In Chinese currency terms, sales totaled 213.5 billion yuan, easily beating last year's figure of 168.2 billion yuan and representing a nearly 27% year-on-year rise. That was, however, smaller than the 39% year-on-year growth recorded in 2017.
It was the 10th edition of Alibaba's annual Singles Day event. During the 24-hour period, often compared to America's Cyber Monday and Black Friday, Alibaba offered huge discounts across its e-commerce sites.
Shares were little changed in pre-market trade.