Carnival Stock – MORNING BID-Driving down the recovery highway
A look at the day ahead from Saikat Chatterjee.
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
(Reporting by Saikat Chatterjee; editing by Sujata Rao)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.