Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Equities were mixed in Asia as oil’s rally continued and Goldman Sachs warned of a possible FOMO effect, Theresa May is off to meet Emmanuel Macron and Angela Merkel to talk Brexit, and the International Monetary Fund gives an update on its economic outlook amid a backdrop of slowing global growth. Here’s what’s moving markets.
And Breath
Stock investors are taking a breather after a rally that’s seen many major indices gain about 15 percent year-to-date. Timing around a China-U.S. trade deal remains unclear, and the threat of new U.S. tariffs on European goods from President Donald Trump hurt risk appetite overnight. However, be aware of the FOMO effect: Goldman Sachs says that if macroeconomic data starts to pick up, those who didn’t participate in the first-quarter equities joy may be tempted to start buying again, as a fear of missing out kicks in.
Oil’s Tear
Oil jumped again overnight, rising to the highest since early November, following an escalation of fighting in Libya and Trump saying he would designate Iran’s Revolutionary Guard as a terrorist group. Crude’s strength is also seen by some as a sign that OPEC has finally mastered the art of cutting production, but in a somewhat bizarre unintended consequence of one industry’s attempt to cut sulfur emissions, the world may soon need more of the cartel’s barrels than ever before.
M&M… &M
Theresa May heads to Berlin today to meet German Chancellor Angela Merkel and French President Emmanuel Macron, with the latter having been keen to stress in recent weeks that a long delay to Brexit should not be taken for granted. Despite Macron’s hawkish tone, EU diplomats are said to be settling on the idea of offering such an extension. Talks between opposition parties continue in London after Labour’s Jeremy Corbyn said Monday evening that May has “not yet moved off her red lines.”
IMF Eyed
The International Monetary Fund and World Bank are beginning their annual spring meetings in Washington amid a backdrop of uncertainty around the globe. Today, the IMF will update its World Economic Outlook, having predicted in January that 2019 will show the weakest pace of growth in three years amid a sharp slowdown in the euro zone in particular. The report might be eyed by European Central Bank members who are due to announce their latest rate decision on Wednesday.
Coming Up...
Aside from the update from Christine Lagarde’s IMF, scheduled economic releases are limited today. Corporate earnings are also light, although flavor and fragrance giant Givaudan SA and construction materials firm Sika AG are due to provide updates. Both the Swiss companies have market values of more than $20 billion.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Bank employee said to siphon millions using internal passwords.
- Germany’s Economic Outlook? ¯\_(ツ)_/¯.
- You’re worried about the wrong yield curve.
- World Wrestling Entertainment broke a record at the weekend.
- The scope of supposed addictions is widening.
- Burger King’s new plant-based Whopper finds an unlikely fan.
- Central bank independence is under increasing threat.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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