Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Stocks in Asia dipped overnight, following losses in this week’s first trading session in New York. Meanwhile, euro zone data is becoming as hard to read as the region’s political outlook, hard-Brexiteers are trying to ensure they have a candidate with a shot at the U.K. premiership, and questions are arising over how long the dollar’s latest rally can last. Here's what's moving markets.
Down Again
Stocks in Asia followed Wall Street’s lead as U.S. shares declined Tuesday following a public holiday during which President Donald Trump had played down the prospects of a trade pact with China. There was a glimmer of good news, however, as the Trump administration refrained from labeling China a currency manipulator, avoiding riling Beijing even further. That said, investors saw sovereign bond yields slumping to multi-year lows as a further warning signal on risk appetite.
Euro Zone Confusion
Investors in the euro zone could be forgiven for feeling a little confused. First, after months of negativity around the outlook for the currency bloc’s economy, data on Tuesday showed economic confidence improved in May, revealing the strongest increase in production expectations for more than six years. Meanwhile, Angela Merkel has reportedly given up on her own choice to succeed her as German leader, while an important economist has warned that a German should not be the next boss of the European Central Bank. Oh, and to top it off, Greece is now handing out lessons to Italy.
Face Off
As Theresa May seemingly throws in the towel on her Brexit deal, those vying for her job are set to participate in British politics’s equivalent of a Royal Rumble: All Tory contestants still in the race by the middle of next month will debate each other on television, the BBC said. But with at least ten Conservatives running, that number may be whittled-down by the time battle commences. Meanwhile, pro-Brexit members of Parliament are planning to hold meetings that ensure their choice makes it to the final two.
Dollar’s Run
With both the British pound and the euro remaining under political pressure, and the dollar itself acting as a haven in the face of trade-war angst, the Bloomberg Dollar Spot Index is on course to post a fourth straight monthly advance, its longest winning streak since 2015. But the good times may not last forever for the U.S. currency, with at least one fund manager calling the end of the rally. The dollar was paring Tuesday’s gains early Wednesday.
Coming Up...
Euro zone statistics out today, including French inflation and economic growth and German unemployment, may help us decide whether or not that confidence reading was a fluke. Meanwhile, earnings are light, with FTSE 100 software firm Aviva Plc and Russian oil explorer Lukoil the only scheduled updates really worth flagging.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours:
- Macron and Salvini have a used car to sell you.
- MacKenzie Bezos giving billions away.
- Arrests in Spain over soccer match-fixing.
- Ethiopian Air pilot warned of dangers.
- Long live the iPod Touch.
- Vietnam’s economy could soon be bigger than Singapore’s.
- Netflix threatens to leave Georgia over abortion laws.
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