Five Things You Need to Know to Start Your Day
Want to receive this post in your inbox every morning? Sign up here.
It's OPEC day, Trump is said to pick Mnuchin for Treasury Secretary, and Carney fires back at Draghi. Here are some of the things people in markets are talking about today.
OPEC ministers are meeting in Vienna today, and oil is rising amid hopes that a deal will be struck. A barrel of West Texas Intermediate for January delivery was trading $2.72 higher at $47.94 by 5:39 a.m. ET in a volatile session driven by attendees' comments to the press that a deal is close.
Mnuchin for Treasury
Former Goldman Sachs Group Inc. partner and Hollywood producer Steven Mnuchin is said to be President-elect Donald Trump's choice to be the next U.S. Treasury secretary. According to a person familiar with the matter, Trump is also continuing to meet candidates for the secretary of state role, with retired Marine Corps General John F. Kelly and Massachusetts Governor Mitt Romney still said to be in the running for position.
Carney fires back
Bank of England Governor Mark Carney had a warning for the European Union this morning when he said that the EU has a lot to lose if the British banking system is damaged due to Brexit. This follows comments on Monday from ECB President Mario Draghi where he warned the U.K. is likely to suffer most from a hard Brexit. Carney's comments came as the BOE released the results of its latest stress test, with Royal Bank of Scotland Group Plc forced to bolster its capital plan after failing multiple hurdles. Shares in RBS were down 4.3 percent by 5:19 a.m ET.
Overnight, the MSCI Asia Pacific Index climbed 0.2 percent as Samsung Electronics Co. surged to a record high, while Japan's Topix index added 0.1 percent. In Europe, the Stoxx 600 Index was 0.1 percent higher at 5:24 a.m. ET as trading remained thin ahead of the outcome of today's OPEC meeting. S&P 500 futures were also up 0.1 percent.
Euro-area inflation accelerated to 0.6 percent year-over-year in November, from 0.5 percent in October, with core inflation remaining unchanged at 0.8 percent. The ECB is due to meet next week to discuss whether it needs to extend its asset-purchase plan ahead of the current March 2017 end date. In the U.S. today, ADP employment change, mortgage applications and personal income and spending data are all due.
What we've been reading
This is what's caught our eye over the last 24 hours.
- How a $60 billion fund is preparing for Trump.
- After Brexit and U.S. election, it's Italy's turn to keep traders awake.
- Asia is about to face a significant dollar test.
- The man who invented the most important number in finance.
- The world is feeling the might of China's commodity traders.
- Purveyors of the Fragile Five see a 'triple threat' to EMs next year.
- Trump and the arrival of the post-literate age.