China trade figures top the agenda in Asia today. U.K. markets reopen after the long weekend. In the U.S., Trump will announce his decision on the Iran nuclear deal Tuesday at the White House. Here are some of the things people in markets are talking about.
Tech Boosts U.S. Stocks
U.S. stocks extended their gains as the dollar resumed its rally and Faang (Facebook, Amazon, Apple, Netflix and Alphabet Inc.’s Google) shares rebounded. The NYSE FANG+ index hit another record high against the S&P 500. WTI crude whipsawed investors, topping $70 a barrel early in the day and then paring gains as markets weighed a coming U.S. decision on the Iran nuclear accord. Ten-year Treasury yields hovered below 2.96%. The euro weakened, and the Stoxx Europe 600 climbed, though trading volume in the region was lighter due to a U.K. holiday.
Trump’s Iran Decision Set for Tuesday
President Donald Trump said in a tweet that he’ll announce whether the U.S. will remain in the Iran nuclear accord on Tuesday at 2:00 p.m. in Washington. Germany, France and the U.K. have lobbied Trump and his top aides to stay in the deal, which the president has harshly criticized. French President Emmanuel Macron said after meeting with him last month that he expects the U.S. to exit the deal. British Foreign Secretary Boris Johnson is in Washington this week to make a last-ditch argument to persuade Trump to remain in the accord, arguing that it is flawed but can be improved.
A Record for Global Funds’ China Bonds
Foreign investors increased their holdings of onshore Chinese bonds by a record last month, as the debt posted the biggest advance in more than two years. Overseas investors made net purchases of 66.4 billion yuan ($10.4 billion) of the securities in April, bringing total holdings to an unprecedented 1.15 trillion yuan, according to data from the China Central Depository & Clearing Co. That was the biggest increase yet, for data going back to 2014, and more than triple the net purchase of 20.7 billion yuan the previous month. Chinese bonds last month had their best returns since December 2015 as interbank liquidity improved and inflation concerns eased, while most other major markets saw losses as central banks prepared to unwind stimulus.
Takeda Nears Shire Deal
Takeda Pharmaceutical Co. is nearing an agreement to buy rival drugmaker Shire Plc, people with knowledge of the matter said, in what would mark the biggest takeover ever by the Japanese company. An agreement could be announced as early as Tuesday, the deadline set by U.K. regulators for Takeda to make a firm offer for Shire, according to the people. Takeda reached a preliminary pact with Shire last month after offering the equivalent of about £49 ($66.47) a share in stock and cash, or $64 billion.
China’s April trade data loom as a potential headliner for Tuesday in Asia; exports are expected to show a healthy rebound from March’s slump, but early indicators are signaling an April slowdown. Japanese household spending, Australia’s retail sales and budget and Taiwan’s CPI are also expected. Traders in the U.K. will return from holiday Tuesday as envoys from the EU27 meet in Brussels to discuss Brexit developments.
What we’ve been reading
This is what’s caught our eye over the last 24 hours.
- Alibaba investors should read up on Warren Buffett.
- Ant Financial is in China’s crosshairs.
- The emerging-market rout is different this time.
- Crude oil is facing a month of mayhem.
- Starbucks will use its Nestle cash for a China push.
- Who’s pulling ahead in the self-driving car race?
- Japan Airlines is studying setting up a low-fare carrier to taking on rising competition.
©2018 Bloomberg L.P.