Written by Gary
US stock market index futures are pointing towards an opening in the red (SPY -0.2%) as investors worry over U.S. trade protectionism around car imports after latest tariff warning.
Here is the current market situation from CNN Money | |
European markets are mixed. The CAC 40 is higher by 0.01%, while the FTSE 100 is leading the DAX lower. They are down 0.36% and 0.32% respectively. |
Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
What Is Moving the Markets
Here are the headlines moving the markets. | |
Stock futures flat as auto tariff threat dulls Fed optimism(Reuters) – Worries over U.S. trade protectionism, this time around car imports, weighed on Wall Street’s main indexes on Thursday, overshadowing optimism that the Federal Reserve may be more tolerant of rising inflation than previously expected. | |
General Electric’s power unit fights for growth as wind, solar gainNEW YORK (Reuters) – Vistra Energy Corp and Dominion Energy Inc – which serve about 5.5 million electricity customers in more than a dozen U.S. states – both say they are done building combined-cycle natural gas-fired power plants. | |
U.S. launches auto import probe, China says will defend interestsWASHINGTON (Reuters) – The Trump administration has launched a national security investigation into car and truck imports that could lead to new U.S. tariffs similar to those imposed on imported steel and aluminum in March. | |
U.S. could seek American compliance officers at ZTE: RossWASHINGTON (Reuters) – The United States has not made a final decision on changes to its ban on ZTE Corp , but any alternative remedy could include installing U.S. compliance officers at the Chinese telecoms company, Commerce Secretary Wilbur Ross said on Thursday. | |
Deutsche Bank axes at least 7,000 jobs in trading retreatFRANKFURT (Reuters) – Deutsche Bank is slashing more than 7,000 jobs to cut costs and restore profitability, while keeping its international reach as its new CEO seeks to reassure investors and clients. | |
Car imports probe gives GM, Ford shares tiny lift(Reuters) – Shares of General Motors and Ford inched only marginally higher before the bell on Thursday after the Trump administration launched a national security probe into car imports which could lead to new tariffs on foreign competitors while also stirring trade tensions. | |
EU parliament gets Facebook answers after Zuckerberg meetingBRUSSELS (Reuters) – The European Parliament distributed on Thursday what it called a first set of written replies from Facebook to oral questions put by lawmakers to CEO Mark Zuckerberg at a meeting in Brussels on Tuesday. | |
U.S. launches criminal probe into bitcoin price manipulation: Bloomberg(Reuters) – The U.S. Department of Justice has launched a criminal probe into whether traders are manipulating the price of bitcoin and other digital currencies, Bloomberg reported on Thursday. | |
Trump urges a new ‘structure’ for U.S.-China trade dealWASHINGTON (Reuters) – U.S. President Donald Trump has signaled a new direction in U.S.-China trade talks and said any deal would need “a different structure,” fueling uncertainty over current negotiations. | |
Trump: “NFL Did The Right Thing… Players Who Don’t Stand For Anthem Shouldn’t Be In The Country”It appears President Trump is once again backing off his warning that the historic summit with North Korea – which is set to take place June 12 in Singapore – might not happen. In comments that were likely intended to sooth North Korea’s concerns about the so-called “Libya model” (i.e., the idea that the west would topple the North Korean regime shortly after it gives up its nuclear weapons, just like what happened with Libyan leader Muammar Gaddafi), Trump said during an interview with Fox & Friends that the US might endorse a more “gradual” process of denuclearization. Trump also commented on the NFL’s decision to ban kneeling during the national anthem, saying the “NFL owners did the right thing” and that players who don’t stand for the anthem “shouldn’t be playing and maybe…shouldn’t be in the country.”
He added that he’d still be disappointed with any player who chose to wait in the locker room during the anthem. Circling back to North Korea, Trump’s remarks are a departure from last week when reports surfaced claiming the US had asked the North to consider starting to ship its weapons abroad within six to twelve months, a posi … | |
Deutsche Bank Crashes After Profit Warning, Confirmation Of Massive LayoffsOne day after the WSJ reported that the biggest German bank is set to “decimate” its workforce, firing 10,000 workers or one in ten, this morning Deutsche Bank confirmed plans to cut thousands of jobs as part of new CEO Christian Sewing’s restructuring and cost-cutting effort. The German bank said its headcount would fall “well below” 90,000, from just over 97,000. But the biggest gut punch to employee morale is that the bank would reduce headcount in its equities sales and trading business by about 25%. The announcement came as Deutsche Bank was set for tough questions from investors at its annual general meeting in Frankfurt, including a vote of no confidence for Chairman Paul Achleitner who defended the supervisory board’s decision last month to replace former Chief Executive John Cryan as “unavoidable.” As the WSJ reports, the new CEO, Christian Sewing, laid out strategic priorities for the lender, telling investors that the lender remains committed to investment banking. | |
ECB Minutes: “Pronounced Weakening Of Demand Can Not Be Ruled Out” As “Uncertainty” RisesHardly stating anything new to those who have seen the recent collapse in the Citigroup Euro Econ Surprise Index, which has recently plunged tumbled to the lowest level observed since the 2011 sovereign debt crisis… … this morning the ECB the released minutes from its 25-26 Governing Council meeting, in which “it was widely cautioned that the uncertainty around the outlook had increased since the March monetary policy meeting” and that “a more pronounced weakening of demand, notably related to external factors, could therefore not be ruled out.” Confirming the cautious tone from the ECB’s April meeting, the key highlights from the minutes confirm that the ECB is becoming increasingly sour on the outlook, with the threat of protectionism once again receiving the highest billing: “in particular, risks related to global factors, including the threat of increased protectionism, had become more prominent and warranted monitoring with regard to their implications for the medium-term outlook for growth and prices.” The ECB also warned of violent FX moves: “It was also remarked that turbulent trade relations had the po … | |
DOJ Launches Criminal Probe Into Bitcoin Price ManipulationAfter months of the SEC and the CFTC pursuing civil cases against individual initial coin offerings that had scammed investors out of millions, it looks like the Department of Justice is now ready to take the government’s crackdown against bitcoin to the next level by chasing down allegations of market manipulation in bitcoin and other popular cryptocurrencies. According to Bloomberg, the DOJ has opened a criminal investigation into whether large bitcoin traders – so-called “whales” – are manipulating the price of bitcoin. Market manipulation has been an increasingly popular topic in crypto world – particularly since prices started their historic surge. Last summer, the SEC established the legal precedent that all digital tokens should be treated like legitimate securities and required them to be registered with the agency. Meanwhile, the CFTC, which is also working with the DOJ, declared bitcoin a commodity back in 2015, and is responsible for regulating bitcoin futures. Investigators will likely look to bring charges against traders who engaged in spoofing – flooding the market with fake orders to push a pric … | |
Ralph Lauren Refreshes Its Faded JeansRalph Lauren shares jumped as the company beat analyst expectations and showed investors evidence that its turnaround efforts may finally take hold. | |
Why the Property Industry Isn’t Buying WeWorkWeWork has convinced tech investors that short-term office rentals are the next big thing, and well worth a high price. Savvy real-estate investors also like that business, but not at WeWork’s valuation. | |
Turning GE’s Sacred Cows Into HamburgerGeneral Electric boss John Flannery sent shares tumbling with revelations about profitability and the dividend. | |
Metals Stocks: Gold aims to extend post-Fed minutes pop as stocks set to stumble at openGold gains early Thursday, extending the modest rise from after-hours trading Wednesday when the latest glimpse into Federal Reserve thinking backed longstanding market expectations for an interest-rate hike next month. | |
Market Snapshot: Stock market looks hemmed in as North Korea gloom offsets dovish FedU.S. stock futures show little change early Thursday, as worries about North Korea appear to offset a Federal Reserve release that was viewed as dovish. | |
The Tell: Here’s why Fed rate hikes are like shaking a tree full of rotten fruitVirtually every round of interest rate increases by the Federal Reserve has ended up creating a “meaningful crisis,” says Deutsche Bank strategist Alan Ruskin. This time probably won’t be different. |
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