Investing.com - Here are the top five things you need to know in financial markets on Monday, May 2:
Oil prices retreat from 2016 highs
Oil prices fell on Monday as a monthly increase in production by the Organization of the Petroleum Exporting Countries offset declining U.S. output and recent weakness in the dollar, which has underpinned oil prices.
U.S. crude was down 33 cents or 0.72% at $45.59 a barrel at 1007 GMT. Global benchmark Brent fell 49 cents or 0.99% to $46.9.
Haliburton and Baker Hughes abandon planned merger
Energy companies Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) have scrapped a planner merger, valued at more than $28 billion, after running into opposition from regulators in the U.S. and Europe who claimed that it would hurt competition in the oil-field services business.
Halliburton CEO Dave Lesar said challenges in obtaining regulatory approvals as well as “general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action.”
Puerto Rico set to default
In a television address on Sunday, Puerto Rico's Governor Alejandro Garcia Padilla said the island's Government Development Bank will not make nearly $370 million in bond payments due to its creditors Monday.
Almost all of the bonds are held by a variety of U.S. hedge funds and mutual funds.
The announcement came after efforts to restructure the U.S. territory's debt or find a political solution to the crisis ended in failure.
Global stocks broadly lower
Japan’s Nikkei plunged 3.1% on Monday as the yen rose to fresh 18-month highs against the dollar, while Australian shares fell 0.2% after disappointing Westpac (AX:WBC) earnings.
In Europe, Germany’s DAX and France’s CAC 40 were boosted by solid German manufacturing data. Liquidity remained thin with markets in the U.K. and many parts of Asia closed for the May Day holiday.
Global manufacturing sluggish
Manufacturing activity in the euro area ticked higher In April, as German factory growth accelerated to a three month high, but French factory activity slowed to the slowest rate in a year. The euro zone manufacturing purchasing managers' index rose to just 51.7 from March's 51.6, slightly better than an earlier flash estimate of 51.5.
Earlier Monday data showed that Japanese manufacturing activity contracted in April at the fastest rate in more than three years after a severe earthquake in the south of the country disrupted supply chains.
The Institute of Supply Management was to report on U.S. manufacturing activity later Monday.