Terror attack
A bomb attack at a concert in the city of Manchester, U.K. killed 22 people and injured more than 50. The apparent suicide-bomber targeted the Manchester Arena after a concert by pop star Ariana Grande, who's popular with teenagers and children. President Donald Trump sent his condolences, saying terrorists are "evil losers."
Budget proposal
Donald Trump's budget proposal would see a dramatic reduction in the federal government's role in society, with a proposed $3.6 trillion in spending cuts over the next decade. The plan, which would slash Medicaid payments and cut agricultural subsidies, has been declared dead on arrival by Republicans in Congress as it attacks too many powerful lobbies. The White House's plan to trim national debt includes selling off half of the nation's Strategic Petroleum Reserve and allowing drilling in the Alaska National Wildlife Refuge, moves which would again face stiff opposition. The president, meanwhile, is continuing his tour of the Middle East, visiting Palestine today.
Good economic data from Europe
The German economy enjoyed a broad-based expansion in the first quarter, posting growth of 0.6 percent driven by consumer spending, exports and investment. The Ifo institute's confidence index rose to 114.6 in May from 113 in April, beating expectations, while a Purchasing Managers' Index for factories jumped to 59.4 in May, according to a report by IHS Markit. Yesterday German Chancellor Angela Merkel said the euro is "too weak" for the country.
Markets rise
Overnight, the MSCI Asia Pacific Index gained 0.1 percent, with Japan's Topix index also adding 0.1 percent. In Europe, the Stoxx 600 Index was 0.2 percent higher at 5:45 a.m. Eastern Time, as positive economic data lifted cyclical companies. S&P 500 futures pointed to a slightly higher U.S. open.
Coming news
At 9:45 a.m. manufacturing PMI for the U.S. is released, with April new home sales also due at 10:00 a.m. There are Federal Reserve speakers scheduled for today, with Minneapolis Fed's Neel Kashkari at 10:00 a.m. and the Philadelphia Fed's Patrick Harker at 5:00 p.m. It's also worth keeping an eye on developments in Brazil, where S&P Global Ratings may cut the country's credit rating further into junk territory.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.