Five Things You Need to Know to Start Your Day
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Stock and commodity markets rally, it's a big day for earnings and voting begins in the New York primaries. Here are some of the things that people in markets are talking about today.
Asian markets followed yesterday's U.S. rally, with the MSCI Asia Pacific Index rising 1.8 percent to its highest level since Dec. 3, while Japan's Topix index jumped 3.3 percent as speculation increased over further central bank stimulus following last week's deadly earthquake. In Europe, the Stoxx 600 Index was 1.2 percent higher at 10:25 a.m. London time as earnings from Roche Holding AG and Danone SA boosted shares. S&P 500 futures were 0.5 percent higher.
24 hours makes a big difference in commodity markets. Oil traded higher than Friday's close this morning, wiping out all the losses from the Doha talks failure, with a barrel of West Texas Intermediate for May delivery up 60 cents at $40.38 as of 10:40 a.m. London time. Metals are also rallying, with iron ore back above $60 a metric ton as Chinese steel mill output fails to replenish inventories while zinc and lead are also higher. This has given a boost to commodity currencies, with the aussie and loonie both both gaining against the dollar. Precious metals surged this morning, with silver adding as much as 3.2 percent.
There is a slew of earnings data for U.S. stocks today, with investors likely to closely watch Goldman Sachs Group Inc.'s report at 7:30 a.m. ET in what has not been a stellar earnings season so far for the big banks. Johnson & Johnson is also due to report earnings ahead of the bell. And after the bell, Yahoo! Inc. reports, amid news of further bidders emerging for the company's assets with Intel Corp. also due to release results. In other corporate news this morning Theranos Inc. said it’s under investigation by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office.
Argentina's bond return
After a 15 year absence, Argentina is making a return to the bond market, and it is going superbly so far. The country plans to sell a total of $15 billion of 3- 5- 10- and 30-year securities, which would be a single-day record for a developing country, with reports suggesting the sale is heavily oversubscribed.
New York primaries
It is presidential primary day in New York with both Hillary Clinton and Donald Trump expecting big victories. Both campaigns are looking to seize momentum in the race to their respective party candidacies, with Ted Cruz's weekend Wyoming haul increasing the pressure on Trump while Clinton needs a win to cement her frontrunner status.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Odd Lots Podcast: How Merle Hazard became the most important country singer in economics.
- It's all suddenly going wrong in China's $3 trillion bond market.
- Saving Italy's banking system from collapse.
- Brexit risks drive Britons to apply for French passports.
- Germans are worried about dwindling savings...
- ... In a world turned upside-down by sub-zero rates.
- And the Paris climate pact: Too little, too late?