Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. European equity futures are suggesting minor gains on Tuesday, Chinese monetary-policy makers took action against the effect of tariffs, there are some important U.K. statistics coming up, and we have a checkup on the oil market. Here's what's moving markets.
PBOC Action
While U.S. President Donald Trump was threatening new tariffs on China if President Xi Jinping stands him up at the approaching Group of 20 summit, the Asian nation’s central bank was defending its currency. It set its reference rate for the yuan higher than forecast and said it plans to sell bills this month after the currency was hit in May as the trade war escalated and the economy slowed. But if you really want to keep up to date with China, you might want to follow this newspaper editor.
Re-Open
Several European bourses re-open after the Whit Monday holiday, including in Germany, Denmark and Switzerland, with sectors exposed to Mexico, like German automakers, expected to benefit from the weekend news that the U.S. had suspended planned tariffs on Mexican goods. Stocks in Asia mostly gained for a second day on Tuesday, while the pound was steady after some hawkish words from a Bank of England rate-setter, as was the euro amid bets on a cut in interest rates from the European Central Bank by the middle of next year.
Shaky Oil
Oil’s gone slightly under the radar of late, as commentators focus on the trade war’s impact on equities. But Brent crude prices are down about 12% over the past month, compared with the the Stoxx Europe 600 index’s gain of about 0.3%. As such, hedge funds have also slashed bets on a rally in West Texas Intermediate, according to data released Friday. Futures gained overnight as Saudi Arabia maintains that it will work with Russia and other members of the OPEC+ coalition to prevent a further slump.
U.K. Jobs
The labor market is the star performer of the British economy, but with gross domestic product now shrinking on a monthly basis, investors may start to question the outlook for jobs. So keep an eye on U.K. unemployment statistics at 9:30 a.m. in London. Meanwhile, there were no real surprises on the long list of candidates to replace Theresa May as Conservative party leader and prime minister.
Coming Up...
We’ll get an update on the U.K. housing sector, when builders Bellway Plc and Crest Nicholson Holdings Plc both update, and FTSE 100 environmental tech firm Halma Plc publishes a full-year report too. Earnings on the continent are light, but several European Central Bank speakers on today’s schedule will keep FX traders on their toes.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours:
- Trump has French wine in his sights.
- $13 million New York island for sale.
- Upgrade your memory with a surgically-implanted chip.
- Has the Brexit vote cut worker training?
- These are the U.K.'s top 100 restaurants.
- Rich families’ awkward conversations.
- $450 million Da Vinci is on a superyacht, report says.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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