Good morning! Here are all the major market stories you need to know before the opening bell.
Deflation Comes To Europe. Prices in the eurozone fell 0.2% in December compared with the prior year, more than the 0.1% drop that was expected. Prices in europe were dragged down by energy prices, which fell 6.3% from a year ago.
Oil Just Won’t Stop Tumbling. WTI crude slumped below $US48 per barrel for the first time since 2009 on Tuesday while Brent crude cracked the $US50 mark for the first time early Wednesday morning.
US Futures Are Surging. US stock futures are indicating a higher open in New York after Tuesday marked the fifth straight day the S&P 500 declined. Near 7:10 am ET, Dow futures were up 114 points, S&P 500 futures were up 14 points, and Nasdaq futures were up 26 points.
The Euro Hit A New Nine Year Low. Following disappointing inflation data out of the eurozone, the euro hit another nine year low against the US dollar. Last night, the euro dropped sharply, and this morningtook another leg lower.
The White House Is Vowing To Veto The Keystone Pipeline. The White House revealed on Tuesday that President Barack Obama would veto congressional legislation to create the Keystone XL Pipeline. “I can confirm for you that if this bill passes this Congress, the president wouldn’t sign it,” White House Press Secretary Josh Earnest told reporters during his daily media briefing.
An Employment Check From The US. In the US, we get our first reading on employment this week with the private payrolls report from ADP set for release at 8:15 am ET. Expectations are for the reading to show private companies grew payrolls by 225,000 in December. The December jobs report is set for release on Friday, with economists expecting payrolls grew by 240,000.
Tragedy In France. At least 11 people were killed after two gunmen attacked the headquarter of satirical magazine Charlie Hebdo in Paris on Wednesday.
German Unemployment Hits Record Low. Germany’s adjusted unemployment measure dropped a record low of 6.5%, and as Business Insider’s Mike Bird notes, this data comes as unemployment in Italy surged to a record high of 13.4%, exemplifying the divide that is currently stressing the monetary union.
Oil Plunge Hits US Steel Workers. The Wall Street Journal reported on Tuesday that US Steel will cut 756 workers and idle plants in Ohio and Texas, citing “the recent downturn in the oil industry.” The plants set to be closed generated more than 800,000 tons of pipe annually, according to the Journal.
Falling Oil Is Making It Hard For Iraq To Fight ISIS. In December, Iraq exported about 91.1 million barrels of oil, its highest level in any month since 1980. But w
ith oil at $US50 a barrel eroding tax revenues, it’s nearly impossible to eradicate the Islamic State group from the country or provide basic social services.