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May 4 - Welcome to the home for real-time coverage of
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DRIVING DOWN THE RECOVERY HIGHWAY (0658 GMT)
With the U.S. economic recovery story firmly entrenched into
the market mindset, Monday's softer-than-expected U.S.
manufacturing report pushed Treasury yields lower and toppled
the dollar from multi-week highs. On the other hand, there were
upbeat earnings, news of cities reopening, and a dovish Federal
Reserve, all of which are keeping the tone relatively positive.
What's more, the data from the Institute of Supply
Management (ISM) showed that rising costs and capacity pressures
undermined output rather than any hit to demand. South Korean
export data and German retail sales figures have broadly
confirmed that trend.
Until U.S. services data and monthly payrolls numbers offer
further guidance later this week, markets are scratching around
in well-worn ranges; the dollar is a touch firmer and U.S. stock
futures are treading water.
Meanwhile, Australia kicked off a busy week for central
banks. It kept policy rates unchanged but upped economic
forecasts. Norway, UK, Turkey and Brazil will also announce
monetary policy decisions this week, with many expecting the
Bank of England to announce a a cut to its bond-buying QE.
In corporate news, Italy's Mediaset and its second-largest
investor, Vivendi ended years of legal sparring, agreeing for
the French group to cut its stake in the Italian broadcaster.
Shares in travel and leisure firms such as TUI, Carnival and
EasyJet are up pre-market on news the EU will ease travel curbs
on vaccinated holidaymakers.
But don't forget the virus. India's infections caseload
surged past 20 million, the second nation after the United
States to pass the milestone. And a sudden spurt in Taiwan's
infections numbers pushed shares there 3% lower.
Key developments that should provide more direction to markets
on Tuesday:
-Corporate news: Verizon is ditching its media businesses
that include iconic brands Yahoo and AOL for $5 billion; German
meal-kit delivery company HelloFresh grew its active customer
base by 74% in Q1; Norway's Telenor has written off the value of
its Myanmar operation.
-UK April final PMI readings
-Bank of France Governor Villeroy speaks
-U.S., Canada March trade data
-Dallas Fed President Robert Kaplan to speak. He caused a
stir on Friday by calling for a conversation about tapering.
-China Caixin PMI final
-US durable goods/factory orders
-US earnings: Thomson Reuters, Pfizer, ConocoPhilips,
Western Union, Herbalife, Prudential
(Saikat Chatterjee)
EUROPEAN BOURSES LOOKING FOR RECOVERY SIGNALS (0538 GMT)
European shares are seen open little changed mirroring Asian
shares as investors look for signs of recovery as major
economies around the world reopen.
The mildly positive tone in Asia was broadly in line with
that on Wall Street overnight, where upbeat earnings, news of
cities reopening and a dovish Federal Reserve helped offset a
disappointing report on manufacturing activity.
In the corporate news, Italy's Mediaset and its
second-largest investor, Vivendi, on Monday ended years of legal
sparring with an accord under which the French group will
drastically cut its stake in the Italian broadcaster.
(Joice Alves)
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