Five Things You Need to Know to Start Your Day
(Bloomberg) -- Want to receive this post in your inbox every morning? Sign up here
Tech rout rattles global stocks, China says Kim open to discussing giving up nuclear weapons, and more pharma M&A. Here are some of the things people in markets are talking about today.
The stock selloff that began during the second half of yesterday’s U.S. market session has spread across the world. Tech stocks led the drops, with Nvidia Corp. and Facebook Inc. among the hardest hit. Overnight, the MSCI Asia Pacific Index fell 1.3 percent while Japan’s Topix index closed 1 percent lower. In Europe, the Stoxx 600 Index was 1.0 percent lower at 5:45 a.m. Eastern Time with defensive stocks the only sectors posting gains. S&P 500 futures pointed to further losses at the open, the 10-year Treasury yield was at 2.753 percent and gold was lower.
China’s official Xinhua News Agency said that North Korean leader Kim Jong Un is willing to talk with U.S. President Donald Trump about giving up his nuclear weapons after Kim’s surprise visit to the Chinese capital. The report on possible nuclear concessions, which was not echoed by North Korean state media, gave further impetus to the potential meeting between Kim and Trump expected in May. Elsewhere on the Korean peninsula, the Trump administration secured its first revised trade deal with Seoul yesterday.
Shares in Shire Plc jumped more than 20 percent in London trading this morning after Japan’s Takeda Pharmaceutical Co. said it’s considering an approach for the company. The move comes as activity in the sector heats up, marked by GlaxoSmithKline Plc’s $13 billion agreement to buy out Novartis AG’s stake in their consumer-health joint venture earlier this week.
With just over a year to go to the U.K.’s exit from the European Union, Prime Minister Theresa May said the post-Brexit transition phase may end up being longer than currently planned due to the difficulties in establishing a new customs regime and avoiding a hard border with Ireland. Bloomberg reporters traveled throughout the U.K. to gauge the public mood, and it seems that the only certainty with Brexit so far is that most people still do not know what a post-EU U.K. will look like.
U.S. GDP for the fourth-quarter of 2017 is forecast to be revised higher to 2.7 percent when the update is published at 8:30 a.m., with wholesale inventories growth expected to slip to 0.5 percent in February when that data is released, also at 8:30 a.m. Pending home sales numbers are due at 10:00 a.m. At 10:30 the EIA issues the U.S. crude inventory report. In bonds today, the Treasury is selling $15 billion of two-year notes and $29 billion of seven-year notes.
What we've been reading
This is what's caught our eye over the last 24 hours.
- The lessons from stock corrections past? 200 days of pain.
- Softbank to build world’s biggest solar park in Saudi Arabia.
- Tesla says cause of Model X crash not yet known.
- Uber will let California autonomous-vehicle license expire.
- Fans of European defensive stocks are finally getting their payoff.
- The math whiz becoming a key figure in France.
- Monetary policy does not affect inequality, BOE report says.
(Corrects time of GDP, wholesale inventories in fifth para)
©2018 Bloomberg L.P.