A look at the day ahead from Julien Ponthus.
Stock markets have found a kind of equilibrium these days, below record highs yet apparently content about the U.S. Federal Reserve's wait-and-watch policy stance.
They may also be getting accustomed to the taper talk that's
increasingly creeping into Fed speakers' lexicon. The bank's vice chair for supervision Randal Quarles was the latest to say he was prepared to open talks on reducing emergency support. (He did stress at the same time the need for patience).
And broader structural shifts are also underway.
Take yesterday's banking industry hearing at the U.S. Senate. Alongside receiving the usual grilling for perceived greed and malpractices, Wall Street's top bankers also found themselves under attack from some Republican Senators for supporting liberal causes, such as gun control or limiting fossil-fuel financing.
Actually, cutting off fossil-fuel companies makes perfect business sense. Shareholders have just rebuked the top two U.S. oil companies for dragging their feet on fighting climate change. And a Dutch court has told Royal Dutch Shell to move faster on cutting greenhouse gas emissions.
Another landmark moment yesterday was in the 'gig economy' where Uber recognised Britain's GMB union, allowing it to represent up to 70,000 drivers.
In the midst of all this, M&A continues apace, the latest mega-deal being Amazon's purchase of MGM, the fabled U.S. movie studio home to the James Bond franchise.
In the meantime, signs of an easing recovery came in with earnings at China's industrial firms growing at a slower pace in April and German consumer morale improving less than expected heading into June.
Key developments that should provide more direction to markets on Thursday:
-- ECB speakers: supervisory board’s Pentti Hakkarainen (0910 GMT), vice president Luis de Guindos (0945 GMT); board member Frank Elderson (1000), board member Isabel Schnabel (1300 GMT)
-- U.S. durable goods, GDP, weekly jobless
-- Auctions: US 4-week t-bills, 7-year notes; Japan 40 yr bonds
-- US earnings: Dollar general, Medtronic, Dollar Tree, Best Buy, Gap, Costco
-- European earning: Johnson Mathey, Tate and Lyle The same six bank CEOs will appear before the House Financial Services Committee on Thursday
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Big Oil's energy transition
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(Reporting by Julien Ponthus; editing by Sujata Rao)
((julien.ponthus@thomsonreuters.com@thomsonreuters.com
mailto:saikat.chatterjee@thomsonreuters.com)
Stock markets have found a kind of equilibrium these days, below record highs yet apparently content about the U.S. Federal Reserve's wait-and-watch policy stance.
They may also be getting accustomed to the taper talk that's
increasingly creeping into Fed speakers' lexicon. The bank's vice chair for supervision Randal Quarles was the latest to say he was prepared to open talks on reducing emergency support. (He did stress at the same time the need for patience).
And broader structural shifts are also underway.
Take yesterday's banking industry hearing at the U.S. Senate. Alongside receiving the usual grilling for perceived greed and malpractices, Wall Street's top bankers also found themselves under attack from some Republican Senators for supporting liberal causes, such as gun control or limiting fossil-fuel financing.
Actually, cutting off fossil-fuel companies makes perfect business sense. Shareholders have just rebuked the top two U.S. oil companies for dragging their feet on fighting climate change. And a Dutch court has told Royal Dutch Shell to move faster on cutting greenhouse gas emissions.
Another landmark moment yesterday was in the 'gig economy' where Uber recognised Britain's GMB union, allowing it to represent up to 70,000 drivers.
In the midst of all this, M&A continues apace, the latest mega-deal being Amazon's purchase of MGM, the fabled U.S. movie studio home to the James Bond franchise.
In the meantime, signs of an easing recovery came in with earnings at China's industrial firms growing at a slower pace in April and German consumer morale improving less than expected heading into June.
Key developments that should provide more direction to markets on Thursday:
-- ECB speakers: supervisory board’s Pentti Hakkarainen (0910 GMT), vice president Luis de Guindos (0945 GMT); board member Frank Elderson (1000), board member Isabel Schnabel (1300 GMT)
-- U.S. durable goods, GDP, weekly jobless
-- Auctions: US 4-week t-bills, 7-year notes; Japan 40 yr bonds
-- US earnings: Dollar general, Medtronic, Dollar Tree, Best Buy, Gap, Costco
-- European earning: Johnson Mathey, Tate and Lyle The same six bank CEOs will appear before the House Financial Services Committee on Thursday
/><^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Big Oil's energy transition
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Julien Ponthus; editing by Sujata Rao)
((julien.ponthus@thomsonreuters.com@thomsonreuters.com
mailto:saikat.chatterjee@thomsonreuters.com)