Top 5 Things to Know In the Market on Wednesday
Here are the top five things you need to know in financial markets on Wednesday, May 4:
1. Eyes on ADP employment ahead of Friday’s NFP
Investors awaited the publication on Wednesday at 12:30GMT, or 8:30AM ET, of the ADP nonfarm employment change for April as a precursor to the government’s nonfarm payrolls (NFP) on Friday.
In a busy economic calendar day stateside, first quarter non-farm productivity will be released at the same time.
Then at 14:00GMT, or 10:00AM ET, market players will digest the ISM non-manufacturing purchasing managers’ index (PMI) for April and March factory orders.
2. Global stocks broadly lower on continued growth worries
Stocks traded lower for a second session on Wednesday as data throughout the week sparked renewed concern over the health of the global economy.
After data this week saw China’s factory data shrink for the 14th consecutive month, Tuesday saw data pointing to the fact that the euro zone economy grew “at a steady but unspectacular annual rate” in the second quarter, according to Markit chief economist Chris Williamson, and the U.K. construction PMI showed activity drop to an almost three-year low.
With the Japanese stock market closed for a holiday, Dow Jones Shanghai slipped 0.03%, though S&P/ASX All Australian 200 slumped 1.54%.
At 9:55AM GMT, or 5:55AM ET, European stocks markets moved lower with the European benchmark Euro Stoxx 50 trading down 0.86%, the DAX losing 0.75%, the CAC 40 falling 0.72% and London's FTSE 100 dropping 1.30%.
U.S. futures also tallied losses. Specifically, at 9:57AM GMT, or 5:57AM ET, the blue-chip Dow futures shed 0.62%, S&P 500 futures traded down 0.70% and the Nasdaq 100 futures gave up 0.74%.
3. Oil registers choppy trade ahead of weekly inventory data
Oil prices fluctuated in early European trade while waiting on weekly data on U.S. stockpiles.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 1.7 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 1.3 million barrels in the week ended April 29, disappointing traders who were expecting an increase of 0.5 million barrels.
U.S. crude oil futures fell 0.23% to $43.55 at 9:59AM GMT, or 5:59AM ET, while Brent oil slipped 0.11% to $44.92.
4. Dollar rebounds from multi-month lows
The dollar recovered on Wednesday from multi-month lows, while waiting for the aforementioned economic reports.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.20% at 93.21, at 10:01AM GMT, or 6:01AM.
The index had hit a low of 91.89 on Tuesday, the weakest level since January 2015.
5. Cruz suspends presidential campaign, paving way for Trump
After his defeat in the Indiana’s primary, Ted Cruz suspended his campaign on Tuesday which paves the way for Donald Trump to become the Republican presidential nominee.
Despite polls showing that approximately two-thirds of American voters disapprove of Trump, Cruz’s withdrawal made him the most likely candidate to face off against Hillary Clinton, who was expected to secure the Democratic nomination despite a surprise loss to Senator Bernie Sanders in Indiana.
