Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Some European rate-setters are warning against more stimulus, equity markets reacted positively to trade war news and Hurricane Dorian is set to hit Florida in the coming days. Here’s what’s moving markets.
Loud Hawks
European Central Bank hawks have been sounding alarm bells over more stimulus, two weeks before they next meet to discuss bolstering the euro-zone economy. The Dutch central-bank governor Klaas Knot said on Thursday that the outlook isn’t yet weak enough to warrant the resumption of bond purchases. He echoed comments by Germany’s Jens Weidmann, who a few days earlier said speculation over a large stimulus package “doesn’t do justice” to the latest data.
Trade Hope
President Donald Trump offered another positive trade war update, saying the U.S. and China are scheduled to have a conversation, although he didn’t give details. China extended an olive branch to the U.S. Thursday when it indicated that it wouldn't immediately retaliate against the latest U.S. tariff increase, breaking with its usual precedent. The gesture offers a glimmer of hope for traders looking for tensions to cool.
Talks Intensify
The U.K. and the EU will ramp up Brexit talks in the coming weeks with British officials set to meet their EU counterparts at least twice a week in September in search of a breakthrough. Both sides appeared to play down the chances of an imminent resolution. The talks will intensify at a time when U.K. Prime Minister Boris Johnson faces opposition lawmakers and rebels in his own party looking to obstruct his plans. Get ready for another big week of Brexit-related drama from Monday.
Stocks Green, Oil Shines
There’s lots of green on equity screens this morning as Asian investors digest trade optimism. That’s after the European benchmark Stoxx 600 Index and the U.S. S&P 500 had their best day in a week. That ECB commentary wasn’t enough to stop the euro slipping against the dollar overnight, while the fallout from Johnson’s proroguing has the pound lower for a third day. Oil headed for its biggest weekly gain since mid-July after a sizable drop in American crude inventories.
Coming Up...
Hurricane Dorian is expected to make landfall on Florida’s east coast either Sunday night or Monday, becoming the first major hurricane to hit the area in 15 years. That’s a concern for orange juice farmers, while insurers and the oil industry will also have an interest. It’s a light Friday in terms of corporate earnings. On the economic data front, euro zone unemployment and inflation, Italy unemployment are all forecast to remain steady.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- The 26-year-old lawyer who represented El Chapo and Epstein.
- Who said it, Trump or Biden?
- World’s most expensive fish was caught by accident.
- Lewis Hamilton launches meat free burger chain.
- Letting staff expense festival tickets.
- The Big Short’s Burry sees another contrarian opportunity.
- Don’t smoke these fake Greek cigarettes. You may hurt a pensioner.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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