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Crude hits one-month low, FANG back in the spotlight, and a Japanese data dump to end the week. Here are some of the things people in markets are talking about today.
West Texas Intermediate futures hit a one-month low on Thursday in New York, hitting $48.20 per barrel. The prime culprit for the daily decline was the reopening of Libya's biggest oil field after a pipeline carrying crude to a local refinery was blocked earlier in the month. Oil’s woes have derailed the so-called “reflation trade,” while its cousin the “Trump trade” shows signs of life once again.
FANG Bares Teeth
The high-flying quartet known as FANG—Facebook, Amazon, Netflix, and Google (now Alphabet)—all closed at all-time highs Thursday. Afterwards, Amazon and Alphabet posted quarterly results that crushed analyst expectations on both revenues and earnings, sending them even higher in the after-hours session. Netflix also posted a bottom line-beat in its most recent report earlier this month, while Facebook is slated to deliver quarterly results next week.
There’s a veritable smorgasbord of Japanese data on deck to end the week. Of chief importance: inflation prints. The National CPI is forecast to be up 0.3 percent year-on-year in March, the same pace as in February. Meanwhile, April’s reading of Tokyo’s annual inflation is expected to clock in at -0.2 percent after registering a decline of 0.4 percent in its previous release. On Thursday, the Bank of Japan trimmed its inflation forecast, with Governor Haruhiko Kuroda saying the central bank isn’t likely to see inflation stabilize above 2 percent until after fiscal year 2018. The jobs report, released along with inflation data at 8:30 a.m. Tokyo time, is expected to show the unemployment rate ticked up to 2.9 percent in March from 2.8 percent. Other releases include vehicle production, housing starts, industrial production, and retail sales.
The S&P 500 Index closed up less than 0.1 percent after oscillating in a tight, 10-point range throughout the trading day. Many of the assets that gyrated amid rumors of a Nafta dissolution on Wednesday retraced those gains as U.S. President Donald Trump said he would try to renegotiate the deal first. The 10-year U.S. Treasury yield retreated below 2.30 percent, while the U.S. dollar index rose modestly.
S&P/ASX and Nikkei 225 futures are in the red as of 5:30 a.m. Tokyo time after Asia Pacific stocks were little changed the previous day. Chinese equities have rebounded in recent sessions, but some of the world’s biggest investors have applauded the regulatory moves to curb excessive speculation in the stock market
What we’ve been reading
This is what caught our eye over the last 24 hours.
Bank of Japan falls further behind on inflation.
Why Sheryl Sandberg likes to share.
What Wall Street is saying about Trump’s tax plan.
Goldman Sachs asset manager says retail is a three-way risk for insurers.
Draghi’s caution might cause other ECB members to speak up.
Return to growth delayed at Deutsche Bank.
Try “Moon Eating” —the traditional Hawaiian diet.