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A bombing in Manchester, Trump's $3.6 trillion in budget cuts, and the German economy powers forward. Here are some of the things people in markets are talking about today.
A bomb attack at a concert in the city of Manchester, U.K. killed 22 people and injured more than 50. The apparent suicide-bomber targeted the Manchester Arena after a concert by pop star Ariana Grande, who's popular with teenagers and children. President Donald Trump sent his condolences, saying terrorists are "evil losers."
Donald Trump's budget proposal would see a dramatic reduction in the federal government's role in society, with a proposed $3.6 trillion in spending cuts over the next decade. The plan, which would slash Medicaid payments and cut agricultural subsidies, has been declared dead on arrival by Republicans in Congress as it attacks too many powerful lobbies. The White House's plan to trim national debt includes selling off half of the nation's Strategic Petroleum Reserve and allowing drilling in the Alaska National Wildlife Refuge, moves which would again face stiff opposition. The president, meanwhile, is continuing his tour of the Middle East, visiting Palestine today.
The German economy enjoyed a broad-based expansion in the first quarter, posting growth of 0.6 percent driven by consumer spending, exports and investment. The Ifo institute's confidence index rose to 114.6 in May from 113 in April, beating expectations, while a Purchasing Managers' Index for factories jumped to 59.4 in May, according to a report by IHS Markit. Yesterday German Chancellor Angela Merkel said the euro is "too weak" for the country.
Overnight, the MSCI Asia Pacific Index gained 0.1 percent, with Japan's Topix index also adding 0.1 percent. In Europe, the Stoxx 600 Index was 0.2 percent higher at 5:45 a.m. Eastern Time, as positive economic data lifted cyclical companies. S&P 500 futures pointed to a slightly higher U.S. open.
At 9:45 a.m. manufacturing PMI for the U.S. is released, with April new home sales also due at 10:00 a.m. There are Federal Reserve speakers scheduled for today, with Minneapolis Fed's Neel Kashkari at 10:00 a.m. and the Philadelphia Fed's Patrick Harker at 5:00 p.m. It's also worth keeping an eye on developments in Brazil, where S&P Global Ratings may cut the country's credit rating further into junk territory.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Hedge funds are basking in a world-beating surge for Greece's markets.
- May's election u-turn spooks own ministers as Brexit talks near.
- Cybersleuths unearth more clues linking wannacry to North Korea.
- China spins a worldwide web of food stretching from Mozambique to Missouri.
- Noble Group 'fighting for its life' as S&P sees default risk.
- Americans say U.S. moral values are at seven-year low.
- The quants run Wall Street now.