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Trump aides deny the president disclosed classified information to Russia, U.K. inflation is at its highest since 2013, and oil continues to rise. Here are some of the things people in markets are talking about today.
White House National Security Adviser H.R. McMaster rejected the conclusions of a Washington Post article which claimed the president had revealed sensitive classified information to Russia's top diplomat during an Oval Office meeting last week. The story "as reported is false,” he said. The alleged leak is more bad news for President Donald Trump, who was already under pressure over the firing of FBI director James Comey. The dollar dropped for a fifth day in the aftermath of the Post article, with the euro rising to $1.1044 by 5:37 a.m. Eastern Time.
Consumer prices rose 2.7 percent in April from a year earlier, their highest reading since September 2013. While the pound initially rallied on the higher-than-expected figure, as it reduces the chance of further easing from the Bank of England, the currency was trading lower for the session at $1.2886 by 5:41 a.m. The number adds to Governor Mark Carney's difficulties after a report yesterday suggested that the U.K. labor market is facing a "rockier" future.
Oil holds gains
A barrel of West Texas Intermediate for June delivery was trading at $49.13 by 5:45 a.m. as confidence increased that other oil-exporting nations would follow the Russian and Saudi proposal for extending production cuts. Should an agreement be reached next week to prolong the cuts through the end of the first quarter of 2018, that would be enough to erase the glut weighing on prices, according to Bloomberg calculations using U.S. government data.
Overnight, the MSCI Asia-Pacific Index gained 0.1 percent, while Japan's Topix Index added 0.3 percent, with the Nikkei 225 coming within 2 points of 20,000 during the session. In Europe, the Stoxx 600 Index was 0.3 percent lower at 5:50 a.m. after disappointing car-sales data hit automakers. S&P 500 futures were flat.
Later today President Donald Trump will meet Turkish President Recep Tayyip Erdogan, with Trump's decision to arm Kurdish groups against the Islamic State in Syria stoking tensions between the NATO allies. At 9:15 a.m. industrial production data for the U.S. is released, with the manufacturing component expected to show 0.3 percent growth.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Red hot emerging-market stocks are showing signs of melting.
- Mirror, mirror, which asset class is the sleepiest of them all?
- U.S. stats officials say measurements of GDP and inflation are off.
- Harvard endowment's biggest public holding is a high-yield ETF.
- Rich retirees are hoarding cash out of fear.
- China's investor army is bracing for more stock-market pain.
- The near term looks good and the longer term looks scary.