Post by huh on Jun 15, 2016 7:23:56 GMT -5
10 things you need to know before the opening bell
Wednesday's a Fed day. Markets see a zero percent chance of a Federal Reserve interest-rate hike as a result of the disappointing May jobs report and the coming British referendum on staying in the European Union. Traders will be paying careful attention to the Fed's statement but will also take a close look at the dot plot and Federal Open Market Committee projections, which are all due out at 2 p.m. ET. Fed Chair Janet Yellen's news conference will begin at 2:30 p.m. ET.
New loans in China surged. Chinese banks lent out 985.5 billion yuan ($149.56 billion) worth of new loans in May, outpacing the 750 billion yuan that was expected. The big number comes as Beijing tries to remain accommodative amid the continued slowdown of the Chinese economy. "Bank lending beat expectations, but the drop in total social financing shows regulators are trying to push for deleveraging," Nie Wen, an economist at Hwabao Trust in Shanghai, told Reuters.
MSCI won't include China's A shares in its Emerging Markets Index. The index includes stocks from emerging markets around the world that are deemed stable enough for investors, and China believed its inclusion was a near certainty. Remy Briand, global head of research at MSCI, however, said China had made progress in "addressing the remaining accessibility issues" but still had work to do. China's A shares will have another chance at inclusion in 2017.
UK unemployment fell to an almost 11-year low. According to Office for National Statistics data, the UK's unemployment rate fell to 5% in April, its lowest level in more than 10 years. Additionally, the percentage of employed people climbed to 74.2%, matching the highest reading since record keeping began in 1971. And the good news didn't stop there, with wages climbing 2.3%, beating out the 2.0% gain that was expected. The British pound is higher by 0.6% at 1.4195.
California is the 6th-largest economy in the world. California's economy expanded at a 5.7% year-over-year rate in 2015, trailing only Oregon (5.9%) as the fastest-growing state. According to The Sacramento Bee, citing Bureau of Economic Analysis data, California's economic output totaled $2.46 trillion. California's 2016 growth moved it ahead of both France and Brazil, making it the world's sixth-largest economy.
Jeff Gundlach says we're in for a rocky summer. After Tuesday's closing bell, bond guru Jeff Gundlach gave his latest presentation on markets and the economy. Gundlach said that negative interest rates were having the opposite effect of what's intended and that interest rates would remain low. Gundlach also believes a summer sell-off is coming and Donald Trump could win the election.
Morgan Stanley has a new revenue target for its FICC unit. Speaking at Morgan Stanley's US Financials Conference in New York, CEO James Gorman said his firm was hoping to bring in $1 billion of revenue per quarter from its fixed income, currencies, and commodities trading unit, Reuters reports. Gorman said the unit was seeing growing revenue from its bond-trading business despite reducing the headcount by about 25% last year.
Stock markets everywhere are higher. Spain's IBEX (+2.0%) leads in Europe after China's Shanghai Composite (+1.6%) paced the advance in Asia. S&P 500 futures are up 4.75 points at 2,079.25.
Earnings reports trickle out. Ctrip and Jabil Circuit will report after markets close.
US economic data is heavy. PPI and Empire manufacturing will cross the wires at 8:30 a.m. ET. Then industrial production and capacity utilization will be released at 9:15 a.m. ET before crude-oil inventories are announced at 10:30 a.m. ET. Last but not least, net long-term TIC flows are due out at 4 p.m. ET. The US 10-year yield is up 2 basis points at 1.63%.
www.businessinsider.com/opening-bell-june-15-2016-2016-6
Wednesday's a Fed day. Markets see a zero percent chance of a Federal Reserve interest-rate hike as a result of the disappointing May jobs report and the coming British referendum on staying in the European Union. Traders will be paying careful attention to the Fed's statement but will also take a close look at the dot plot and Federal Open Market Committee projections, which are all due out at 2 p.m. ET. Fed Chair Janet Yellen's news conference will begin at 2:30 p.m. ET.
New loans in China surged. Chinese banks lent out 985.5 billion yuan ($149.56 billion) worth of new loans in May, outpacing the 750 billion yuan that was expected. The big number comes as Beijing tries to remain accommodative amid the continued slowdown of the Chinese economy. "Bank lending beat expectations, but the drop in total social financing shows regulators are trying to push for deleveraging," Nie Wen, an economist at Hwabao Trust in Shanghai, told Reuters.
MSCI won't include China's A shares in its Emerging Markets Index. The index includes stocks from emerging markets around the world that are deemed stable enough for investors, and China believed its inclusion was a near certainty. Remy Briand, global head of research at MSCI, however, said China had made progress in "addressing the remaining accessibility issues" but still had work to do. China's A shares will have another chance at inclusion in 2017.
UK unemployment fell to an almost 11-year low. According to Office for National Statistics data, the UK's unemployment rate fell to 5% in April, its lowest level in more than 10 years. Additionally, the percentage of employed people climbed to 74.2%, matching the highest reading since record keeping began in 1971. And the good news didn't stop there, with wages climbing 2.3%, beating out the 2.0% gain that was expected. The British pound is higher by 0.6% at 1.4195.
California is the 6th-largest economy in the world. California's economy expanded at a 5.7% year-over-year rate in 2015, trailing only Oregon (5.9%) as the fastest-growing state. According to The Sacramento Bee, citing Bureau of Economic Analysis data, California's economic output totaled $2.46 trillion. California's 2016 growth moved it ahead of both France and Brazil, making it the world's sixth-largest economy.
Jeff Gundlach says we're in for a rocky summer. After Tuesday's closing bell, bond guru Jeff Gundlach gave his latest presentation on markets and the economy. Gundlach said that negative interest rates were having the opposite effect of what's intended and that interest rates would remain low. Gundlach also believes a summer sell-off is coming and Donald Trump could win the election.
Morgan Stanley has a new revenue target for its FICC unit. Speaking at Morgan Stanley's US Financials Conference in New York, CEO James Gorman said his firm was hoping to bring in $1 billion of revenue per quarter from its fixed income, currencies, and commodities trading unit, Reuters reports. Gorman said the unit was seeing growing revenue from its bond-trading business despite reducing the headcount by about 25% last year.
Stock markets everywhere are higher. Spain's IBEX (+2.0%) leads in Europe after China's Shanghai Composite (+1.6%) paced the advance in Asia. S&P 500 futures are up 4.75 points at 2,079.25.
Earnings reports trickle out. Ctrip and Jabil Circuit will report after markets close.
US economic data is heavy. PPI and Empire manufacturing will cross the wires at 8:30 a.m. ET. Then industrial production and capacity utilization will be released at 9:15 a.m. ET before crude-oil inventories are announced at 10:30 a.m. ET. Last but not least, net long-term TIC flows are due out at 4 p.m. ET. The US 10-year yield is up 2 basis points at 1.63%.
www.businessinsider.com/opening-bell-june-15-2016-2016-6
