Five Things You Need to Know to Start Your Day
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Stocks are higher, Japanese bond yields fall to record low, and Brazil's crisis deepens. Here are some of the things that people in markets are talking about today.
Asian shares rose overnight pushing the MSCI Asia Pacific (excluding Japan) Index back to December levels, completing a 15 percent rebound from January lows. European shares are little changed, with the Stoxx Europe 600 Index climbing 0.1 percent by 10:00 a.m. London time. There is some evidence that investors remain wary of the European stock rally as money continues to be pulled from ETFs that track German shares, despite the DAX Index's 13 percent recovery from its February low. S&P 500 futures are 0.1 percent higher, following yesterday's upwards move that pushed the index into positive territory for the year.
Japanese government bonds continue to rise, with the yield on the benchmark 2026 notes dropping as low as minus 0.135 percent, a record low and below the deposit rate at the Bank of Japan. Equities in Japan fell for a fourth day, as the continued yen strength keeps pressure on exporters. The yen climbed above 111 to the U.S. dollar overnight before paring some of those gains to trade at 111.3 to the greenback at 10:20 a.m. London time.
Oil has maintained its position above $40 a barrel this morning with West Texas Intermediate for April delivery virtually unchanged at $40.22 a barrel at 10:17 a.m. London time. The price rise comes as growing volumes of U.S. exports are "spooking the markets," Amrita Sen, chief oil analyst at consultants Energy Aspects Ltd. in London, said in a note. The recovery also may have played into the decision by the Russian central bank to hold rates unchanged for the fifth meeting in a row this morning.
The political crisis in Brazil took yet another turn yesterday when a federal judge issued an injunction suspending the appointment of Luiz Inacio Lula da Silva as President Dilma Rousseff’s chief of staff. With Rousseff already under pressure because of intercepted phone conversations about the Lula appointment, this latest turn only makes things worse for her. Even if an impeachment process begins, it will be a long, drawn out process.
UBS bonus pool
UBS Group AG raised its bonus pool by 14 percent, becoming the only European bank to award bankers higher compensation. Deutsche Bank AG, which houses Europe’s largest investment bank, said earlier this month that it cut its bonus pool to 2.41 billion euros while at Barclays Plc total compensation costs decreased 6 percent.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Vladimir Putin starts his own rating agency.
- Justin Trudeau's message to Wall Street: I am not my father.
- EU risks showdown with Turkey over halting flow of refugees.
- Former Porsche executives acquitted of VW share manipulation.
- Brevan Howard said to cede management of $450 million hedge fund.
- About that U.S. manufacturing renaissance...
- Stunning global heat wave pushes planet into uncharted territory.