Five Things You Need to Know to Start Your Day
Get caught up on what's moving markets.
Want to receive this post in your inbox every morning? Sign up here
Decision day at the Bank of England, oil holds below $45, and Mueller investigates Trump. Here are some of the things people in markets are talking about today.
Today the Bank of England is expected to leave interest rates and asset purchases unchanged when it makes its latest policy announcement at 7:00 a.m. Eastern Time. While the monetary authority is on a steady path, the latest data from the U.K. economy, including this morning's retail sales miss, has been weak. That, and the political uncertainty following the election, has increased Governor Mark Carney's policy challenge. The governor is due to speak this evening at the annual Mansion House address, an event where U.K. Chancellor of the Exchequer Philip Hammond is expected to make a case for a new path for Brexit. In other unchanging central bank news, earlier today the Swiss National Bank didn't move rates.
Special counsel Robert Mueller is examining whether President Donald Trump sought to slow an FBI probe of former National Security Adviser Michael Flynn, according to three people familiar with the inquiry. Mueller has assembled a team of veteran prosecutors for the investigation into possible collusion between the Russian government and the Trump campaign. The president has not tweeted on the latest revelations.
Oil under $45
A barrel of West Texas Intermediate for July delivery was trading at $44.64 by 5:35 a.m. after data showed that U.S. gasoline supplies unexpectedly rose for a second week. The drop below $45 is putting pressure back on U.S. shale drillers, with analysts saying a drop to $40 could halt rig-growth in some areas and hit service providers' efforts to raise fees.
Overnight, the MSCI Asia Pacific Index dropped 0.9 percent while Japan's Topix index slipped 0.2 percent ahead of tomorrow's Bank of Japan policy meeting. In Europe, the Stoxx 600 Index was 0.6 percent lower at 5:44 a.m. with retailers and commodity producers leading the losses. S&P 500 futures fell 0.5 percent.
Stop me if you've heard this one before... Greece is at a Eurogroup meeting in Brussels today seeking to reach a deal on ways to ease its debt burden in order to unlock the next slice of aid the country needs to allow it repay about 7 billion euros ($7.9 billion) in maturing bonds in July. Ambitiously, the deal is hoped to offer some clarity on the country's future debt obligations.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Portfolio managers are holding record amounts of corporate debt.
- The Fed is flying blind.
- Traders snap up assets where default is the new normal.
- Messaging startup Slack draws interest from Amazon.
- Trump's incoherent foreign policy is upending the world.
- Macron doctrine looks like same old France to angry Italians.
- The latest bet from the central bank that outsmarted Soros.