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New York, US (BBN) – Here are the top five things you need to know in financial markets on Tuesday, April 4:
1. GLOBAL STOCKS SLIP AS CAUTION DOMINATES TRADING
US stock market futures pointed to a lower open on Tuesday morning, as a risk-averse mood spread through the market ahead of an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping.
The blue-chip Dow futures lost 55 points, or around 0.3 per cent, by 5:55AM ET (09:55GMT), the S&P 500 futures shed 8 points, while the tech-heavy Nasdaq 100 futures slumped 18 points.
In Europe, stocks were mostly lower in subdued mid-morning trade, with Germany’s DAX down around 0.1 per cent, while London’s FTSE 100 increased 0.1 per cent.
Earlier, in Asia, markets ended in negative territory, with Japan’s Nikkei dropping 1 per cent.
The Shanghai Composite in China was closed for a public holiday.
2. HAVENS IN DEMAND BEFORE TRUMP-XI MEETING
The main focus for markets this week centers on President Donald Trump’s first meeting with Chinese counterpart Xi Jinping on Thursday and Friday.
Last week, Trump tweeted that the meeting, which is expected to cover differences over trade and North Korea, “will be a very difficult one.”
That has kept investors on edge, knocking riskier assets, such as stocks, and forcing investors to seek shelter in safe-haven assets such as the yen, gold and US Treasuries.
3. US TRADE DATA AHEAD
US trade deficit data is scheduled for release Tuesday at 8:30AM ET (12:30GMT). Economists expect it to have narrowed in February to $44.8 billion from a five-year high of $48.5 billion a month earlier.
Investors will parse through the figures for hints on what it means for trade partnerships with China and other countries amid concern over the Trump Administration’s protectionist policies.
Also on the data front, factory orders are scheduled for release at 10AM ET.
Elsewhere, Federal Reserve Board Governor Daniel Tarullo is due to speak at Princeton at 4:30PM ET.
4.TRUMP TO HOLD TOWN HALL MEETING WITH BUSINESS LEADERS
President Donald Trump plans to hold a town hall meeting with about 50 business leaders on Tuesday at the White House to talk about ways of improving the business climate, his administration said on Monday.
The meeting, which will include the chief executives of Citigroup (NYSE:C), Blackstone (NYSE:BX) Group, JetBlue Airways, Mastercard and the New York Stock Exchange, will involve discussions on infrastructure, modernizing government, workforce development and creating a pro-business climate.
Senior executives from General Electric (NYSE:GE), Hearst, HSBC Bank, Interpublic Group, Vornado Realty Trust (NYSE:VNO), Centerbridge Partners and Paulson & Co. will also attend.
Also taking part will be Transportation Secretary Elaine Chao, House Majority Leader Kevin McCarthy, Commerce Secretary Wilbur Ross and Ivanka Trump, the president’s daughter and a senior adviser.
Market sentiment has been hit by growing doubts over the Trump administration’s ability to push through the pro-growth economic agenda promised by the president.
5. SOUTH AFRICAN RAND TUMBLES AFTER S&P DOWNGRADE
Focus in the currency markets on Tues is directed mostly toward the South African rand, which sank to its weakest in almost five months.
The decline came after ratings agency S&P cut the country’s credit rating to junk with a negative outlook in wake of last week’s surprise dismissal of the country’s finance minister, Pravin Gordhan.
The rand fell by as much 2 per cent against the dollar in response to the news of the downgrade, hitting 13.946, a level not seen since November 1. It was last at 13.783.
The South African 10-year bond yield briefly spiked to 9.205 per cent, before falling back to 9.025 per cent.
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