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It's ECB decision day, OPEC is meeting in Vienna and markets are waiting for direction. Here are some of the things people in markets are talking about today.
The European Central Bank, meeting in Vienna, is due to announce its latest monetary policy decision at 7:45 a.m ET this morning. Every economist surveyed by Bloomberg expects there to be no change in interest rates, with investors likely to focus on ECB President Mario Draghi's press conference beginning at 8:30 a.m. With the central bank expected to begin purchases of corporate bonds this month, further details of that plan may be released, while the ECB's own inflation projections are also due to be updated.
Also meeting in Vienna today is the Organization of Petroleum Exporting Countries, with fractures within the organisation already starting to reappear following Saudi Arabia's signal yesterday that it was ready to consider to surprise deal in order to mend divisions that appeared following the failed Doha meeting. If there was to be a deal from this meeting, it would be a shock to analysts, with only one of 27 surveyed last month saying they expected an output target from the Vienna round. West Texas Intermediate for July delivery was at $49.16 a barrel at 5:48 a.m. ET.
Markets await Draghi
Overnight the MSCI Asia Pacific Index dropped 0.8 percent, with Japan's Topix index falling 2.2 percent, the most in a month, as the yen continued to strengthen following yesterday's postponement of a sales tax increase and Prime Minister Shinzo Abe failure to outline further fiscal measures to stimulate the economy. In Europe, the Stoxx 600 was 0.3 percent higher at 5:55 a.m. ET as investors await the ECB decision. In the U.S. S&P 500 futures were 0.1 percent lower.
Iron ore is at risk of losing all of its year-to-date gains, with a ton of 62-percent ore dropping to $48.40 after posting its biggest monthly loss in about five years in May. There is one bright spot in the industrial metals world—zinc— which is seeing a demand rebound just as supply for miners is dropping. Zinc for delivery in three months climbed above $2,000 a ton for the first time in more than 10 months on Thursday, with the metal gaining as much as 25 percent this year. Gold, which has also had a difficult May is higher today, but the cost of rolling futures into longer-dated contracts has risen to the highest in about six years as bullishness on the metal wanes.
While by far the biggest item of interest this week is tomorrow's payrolls data, today we get a jobs market appetizer with ADP Employment Change data for May due at 8:15 a.m. ET and weekly Initial Jobless Claims due at 8:30 a.m., with expectations there for 270,000 new claimants, in line with last week's number.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Elon Musk’s future: Robot cars, people on Mars and AI run amok.
- Pound trader keeps his head when all around him are losing theirs.
- Internet boom times are over, says Mary Meeker's influential report.
- Japan's debt burden is quietly falling the most in the world.
- Sixty million car bombs: Inside Takata's air bag crisis.
- Game on for China, U.S. ahead of South China Sea ruling.
- The PGA Tour moves 2017 World Golf Championship from Trump course to Mexico.