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Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Asian equities are mixed with the Kiwi dollar providing the most market excitement overnight, oil is on track to post a solid quarter of gains, Apple’s up-and-down week continued, and Brexit is just as confusing as ever. Here’s what’s moving markets.
Kiwi Krushed
Antipodean currencies took center-stage overnight as New Zealand’s dollar sank the most in seven weeks after its central bank joined the global dovish chorus by indicating that its next interest rate move will be down. The Aussie fell in sympathy, adding further strength to the U.S. dollar index, and Treasury yields remained depressed. With Asian equities struggling for real direction, and markets digesting data that showed Chinese industrial companies had the worst start to a year since the global financial crisis, the resumption of U.S.-China trade talks could be key from here.
Quite a Quarter
Crude oil is on course for its best quarterly gain since 2009, with the latest jump coming after Russian Energy Minister Alexander Novak told reporters that the country will likely reach its pledged output cut of 228,000 barrels a day by the end of the month. Russia’s move comes as OPEC and its partners, led by Saudi Arabia, are trimming production to counter a global supply glut. Brent crude futures edged higher for a third straight session in Asian hours. All eyes will be on weekly U.S. inventory data this afternoon.
Apple Infringes
Apple Inc. is having a very mixed week. Last night a trade judge said the California-based firm infringes a Qualcomm Inc. patent, and some imported older iPhones should be blocked from the U.S. as a result. Its fortunes turned later, however, as the U.S. International Trade Commission invalidated a separate Qualcomm patent for a battery-saving feature. Apple’s shares nudged up a tad in post-market hours, having slipped just over 4 percent since Thursday’s close. That was after the company’s big media event left analysts pining for added details. Nasdaq futures are higher today.
It’s Complicated
U.K. politicians and the public alike have entered a state of confusion over how the B-word is going to pan-out. The House of Commons will attempt to break the deadlock on Wednesday with votes on alternatives to Prime Minister Theresa May’s divorce deal with the European Union. One positive for May is that hardline Brexiteer Jacob Rees-Mogg has described her deal as better than no Brexit at all. Kick-off is at 2 p.m. in Westminster, but don’t worry if you miss the start of the action, it’ll be going on until well past bed time. Still unsure about where this is all headed? Us too, but check out this handy graphic for guidance.
Coming Up…
A whole bunch of European Central Bankers are off on their jollies today, delivering speeches at various different events around the continent. Keep an eye on anything interest-rate sensitive, with global rhetoric currently tilting dovish. On the data front, the highlight is the U.S. trade deficit for January, which probably narrowed after reaching a 10-year high in December. Consumer confidence from Italy and Sweden are also on the slate, while in corporate earnings, Imperial Brands Plc reports quarterly numbers as the FTSE 100-listed tobacco firm and its peers navigate their way toward a future in vaping.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- The story of Grenfell Tower flat 113.
- McDonald’s wants to know if it’s cold outside.
- A hedge fund gave back $300 million after Jamal Khashoggi’s murder.
- Melvin isn’t a Mormon, but the religion’s book is his inspiration.
- This could become the most successful memoir ever.
- When a $2,000 heart bypass is not cheap enough.
- A secret tunnel below London will provide power to the U.S. embassy.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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