Want to receive this post in your inbox every morning? Sign up here.
Trump takes a five-point lead in new Ohio poll, Bayer is said to reach a deal to buy Monsanto, and the market rout abates. Here are some of the things people in markets are talking about today.
Republican presidential nominee Donald Trump has opened a five-point lead over Hillary Clinton in the battleground state of Ohio, a Bloomberg Politics poll shows. The poll was conducted Friday through Monday, as Clinton came under pressure over comments about Trump's supporters, and amid renewed concerns about her health. The Mexican peso, which has shown an inverse relationship to Trump's performance in polls weakened immediately after the results came out at 5:00 a.m. ET.
Bayer AG has agreed to buy Monsanto Co. for about $56 billion in a deal that will create the world's biggest maker of seeds and pesticides, according to people familiar with the matter. Bayer will pay $128 a share after offers of $122 in May and $125 in July were rejected by Monsanto's board. The deal, which is still not certain to complete due to antitrust hurdles, will be the largest ever by a German company. Shares in Bayer were 3.6 percent higher at 5:57 a.m. ET.
Global yields rise
Sovereign bond yields have risen to the highest level since June, with the Bloomberg Barclays Global Aggregate Index climbing to 1.24 percent, from a record low 1.07 percent on July 7. The selloff is easing this morning, as investors look to next week's Bank of Japan meeting for more stimulus and seem less concerned about a rate hike this month from the Federal Reserve following Governor Lael Brainard's comments on Monday. The lack of clarity from Fed speakers in the lead up to next week's decision has not been helpful for bond market traders, however.
Market rout eases
Overnight, the MSCI Asia Pacific Index sank 0.7 percent, for its fifth successive day of losses. In Japan, the Topix index closed 0.6 percent lower after a newspaper report said the Bank of Japan is considering pushing rates deeper into negative territory. In Europe, the Stoxx 600 Index was 0.4 percent higher as miners recovered in line with commodity prices. S&P 500 futures added 0.1 percent.
Britain's job market showed continuing resilience after the Brexit referendum, with unemployment remaining at an 11-year low in the three months through July. While this data adds to the argument that the economy will survive relatively undamaged from the Brexit vote, a look at the U.K.'s last recession suggests it might be too early to call. Also, critically, all that has happened so far is the vote to leave. The actual leaving bit may still be some way off.
What we've been reading
This is what's caught our eye over the last 24 hours.
- There's a $300 billion exodus from money markets coming.
- Analysts have some strong opinions on the Bank of England's corporate bond buying.
- How China is reshaping market correlations in Asia.
- Hedge funds have found a new short-selling guru.
- The Fed's deluge of dots and discord leaves global markets baffled.
- Deal or no deal, OPEC's freeze talks are already succeeding.
- Russian scientists are trapped in the Arctic after being encircled by polar bears.