Here are the top 5 things to know for today.
1. Oil prices lower as OPEC output hits record high
Oil prices fell, backing off the previous sessions 16-month peaks, after data showing that OPEC’s oil output hit another record high in November, rising to 34.19 million barrels per day from 33.82 million bpd in October.
The Organization of the Petroleum Exporting Countries agreed last week to cut output for the first time in eight years in a bid to reduce massive oversupply that has pressured prices lower since 2014.
The increase in output ahead of the production cut, set to take effect in January, triggered fears that the global supply glut could persist well into 2017.
U.S. crude oil was trading at $51.37 a barrel at 10:55 GMT, down 42 cents or 0.81% from its last close. Global benchmark Brent futures slid 24 cents or 0.44% to $54.70 a barrel.
2. Euro close to 3-week highs
The euro was steady near three-week highs, having rebounded from 20-month lows set in the previous session after Italian voters rejected constitutional changes backed by the government and the subsequent resignation of Prime Minister Matteo Renzi.
The euro was supported by indications that Italy would not hold early elections after Renzi’s resignation, with many analysts thinking it more likely that a caretaker government will be put in place until an election next year.
Investors remained cautious ahead of the ECB’s policy meeting on Thursday.
The ECB is likely to announce an extension of its quantitative easing program, but any indication that it could begin tapering asset purchases could offset the effect of extending its stimulus program.
3. Italy's bank rescue plans in focus
Concerns over the financial health of Italy’s ailing banking sector remained in focus.
Italy’s banks are weighed down with €350 billion of non-performing loans and if efforts to recapitalize lenders using private money fail, Italy’s government may have to activate bail-in procedures, which would inflict losses on private bondholders.
The Financial Times reported Tuesday that Italy’s third largest lender Monte dei Paschi may have to be bailed out this weekend if a complex plan to fill a €5 billion capital shortfall fails.
4. European shares tick higher
European stocks ticked higher on Tuesday, led by Italy’s FTSE MIB, where bank shares began to recover after a bad start to the week.
But shares in Monti dei Paschi were down 3% in volatile trading, amid fears over whether its rescue plan can be salvaged.
Germany's DAX, London’s FTSE 100 and France’s CAC 40 all rose but lower commodity prices weighed on energy and mining companies, keeping gains subdued.
5. U.S. futures point to flat open on Wall Street
Wall Street futures Tuesday pointed to flat open for the major U.S. indexes a day after upbeat data on U.S. service sector activity sent the Dow Jones Industrial Average to a record close.
The Dow futures dipped 2 points or 0.01%, S&P 500 futures were unchanged, while the tech-heavy Nasdaq 100 futures were up 2.12 points or 0.05%.
The U.S. was scheduled to release data on October factory orders at 15:00GMT.