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Top 4 things you need to know about the market on Thursday
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Loading...1. Trade talks start after Trump says China “broke the deal”
Two days of high level trade negotiations between China’s Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will kick off on Thursday amid escalating tension.
U.S. President Donald Trump announced this week that tariffs on Chinese imports will be increasing on Friday because negotiations were going too slowly and Beijing was not fulfilling commitments.
At a late rally in Florida on Wednesday, Trump insisted that China “broke the deal” and promised that the U.S. “won't back down until China stops cheating our workers and stealing our jobs."
China’s Commerce Ministry responded that escalation of trade friction was not in the interest of the two countries or the world, but promised to retaliate if the U.S. moved forward with increased tariffs.
2. Trade tensions keep tight hold on global stocks
Global stocks declined for a fourth consecutive session Thursday as the trade standoff between the U.S. and China convinced market participants to take risk off the table.
Chinese shares led the decline with the Shanghai Composite closing down 1.5%, while Japan’s Nikkei 225 was off 0.9%.
European shares, as measured by the Euro Stoxx 50, also declined around 1%.
Despite a mixed close in the prior session, far from intraday lows, U.S. futures pointed to a further leg down. Dow futures sank 207 points, or 0.8% by 5:39 AM ET (0939 GMT), while S&P 500 futures fell 23 points, or 0.8%, and Nasdaq 100 futures traded down 72 points, or 0.9%.
3. Disney slips despite an upbeat report
Although Walt Disney reported better-than-expected numbers on the top and bottom lines after the prior market close, shares dipped 0.2% in premarket trading.
Theme parks helped in the quarter and the company is now riding high on the success of “Avengers: Endgame” and on expectations for its new streaming service Disney+.
Despite the positive numbers, much of the good news was already priced into the stock, which has risen more than 17% in the last month.
4. Fed Powell with a press conference at 15:30 (GMT +3)
Federal Reserve Chairman Jerome Powell will speak as the markets will listen carefully for possible directions about the next movements in their monetary policy.
The conference begins with the publish of April's Producer Price Index (PPI), trade balance data in March, and the usual weekly unemployment claims.
Trader Milko Zashev Read more:
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