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It's decision day at the ECB, Trump makes a u-turn on NAFTA, and Deutsche Bank earnings trail peers. Here are some of the things people in markets are talking about today.
Central bank decisions
Overnight, the Bank of Japan kept its stimulus policies unchanged while lowering its inflation forecast, indicating that any exit from accommodative monetary policy may still be some way off. In Sweden, the Riksbank unexpectedly decided to extend its bond buying program into the second half of this year, a move which saw the Swedish krona weaken 0.9 percent to 8.838 to the dollar. At 7:45 a.m. Eastern Time the European Central Bank will announce its latest monetary policy decision. With no expectation for a change in policy, investors will look to the press conference beginning at 8:30 a.m. for any tapering hints.
President Donald Trump won't immediately terminate U.S. participation in the North American Free Trade Agreement, the White House has said, following conversations between the president and the leaders of Mexico and Canada. Press reports of a possible U.S. withdrawal from the accord saw Mexico's peso, the Canadian dollar and shares of companies that rely on cross-border trade plunge yesterday. But the moves are unwinding after Washington's statement. Meanwhile, the president's tax plan was published yesterday, with the 250-word document seen as short on details.
Investors were left disappointed by Deutsche Bank AG's first-quarter performance as debt and equity trading revenues missed estimates. Shares in the bank fell as much as 3.9 percent after the announcement and were trading 3.1 percent lower at 5:39 a.m. Lloyds Banking Group Plc reported net interest income that topped analyst estimates in results which saw shares trade 3.3 percent higher by 5:40 a.m.
Overnight, the MSCI Asia Pacific Index was little changed, while Japan's Topix index dropped 0.1 percent following the Bank of Japan decision. In Europe, the Stoxx 600 Index was 0.4 percent lower at 5:49 a.m. with miners leading the losses as metals fell. S&P 500 futures were broadly unchanged.
There is a raft of U.S. economic data due at 8:30 a.m., with durable goods orders, wholesale inventories and initial jobless claims all set to be released. Today is also a big day in tech earnings, with Alphabet Inc., Microsoft Corp., Amazon.com Inc., and Intel Corp. all due to report.
What we've been reading
This is what's caught our eye over the last 24 hours.
- In dot-com bubble time, it's still only 1997 for U.S. equities.
- Merkel warns against U.K. "illusions" in a hard-line Brexit speech.
- Foreign banks reduce lending to U.K. commercial real estate.
- The Saudis are losing oil market share to Iran and Iraq.
- China's financial crackdown wins backing from Mobius to Fidelity.
- World's oldest fungus raises evolution questions.
- Is Justin Trudeau the anti-Trump?