The pound falls to a 31-year low, global stocks fall, oil rallies and gold climbs from a 3.5-month low. Here are four things to know in the market on Wednesday, October 5.
1. The Pound Falls to 31-Year Low Against the Dollar
Sterling dropped to $1.27 against the dollar on Wednesday, a 31-year low, as investors grow increasingly concerned over a hard Brexit. The pound also fell to a five-year low against the euro.
The pound has eased 2% this week on concerns that Britain’s exit from the EU may have negative economic consequences.
2. Global Stocks Fall
Global stocks dropped on ECB concerns and U.S. data. European and U.K. stocks were lower mid-morning amid rumors that the European Central Bank may wind down its bond buying program and Britain’s exit from the EU would be rocky.
In Asia, shares were mostly lower. In the U.S., futures pointed to a lower opening as investors turned their focus to upcoming economic data for clues on whether the Fed will raise rates in December.
3. Oil Rallies to a 4-Month High
Oil rallied to a four-month high as investors waited for new stockpile data out of the U.S.
The U.S. Energy Information Administration will release its report on oil supplies later this morning. Analysts are expecting an increase of 2.56 million barrels.
The American Petroleum Institute reported on Tuesday that oil inventories had fallen by 7.6 million barrels last week.
Brent was up 85 cents to $51.72 per barrel, while U.S. crude was up 80 cents to $49.50 per barrel.
4. Gold Rebounds from 3.5-Month Low
Gold prices rose on Wednesday morning, climbing off a 3.5-month low as the dollar eased off a two-month high.
Gold added $6.15 to $1,275.85 per troy ounce. Earlier, the yellow metal dropped to $1,268.60 earlier. Prices plunged $43 on Tuesday, its largest one-day percentage decline in three years.