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Top 5 Things to Know in the Market on Wednesday

EconomyMay 15, 2019 05:55AM ET
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Investing.com -- These are the top 5 things you need to know in financial markets on Wednesday, May 15.

1. Chinese Crawl

China’s economy slowed further in April, even before President Donald Trump moved to raise and extend the scope of U.S. import tariffs.

Data released Wednesday showed growth in industrial production and retail sales both slowed sharply in April from March, while the rate of fixed asset investment growth also eased slightly.

The Chinese stock market rallied in spite of the news, apparently in anticipation of easing measures by the People’s Bank of China. The yuan, which has hit new lows for the year this week, weakened to over 6.91 to the dollar in offshore markets, which aren’t as tightly controlled by the PBoC.

Elsewhere, President Trump ramped up the pressure on China by preparing to ban telecoms group Huawei from tenders to build 5G networks in the U.S.

2. Wall Street Set to Open Lower

The U.S. stock market looks set to fall back again at the opening after rebounding on Tuesday from heavy losses caused by the escalation of the U.S. China trade war.

At 05:30 AM ET, the S&P 500 futures contract was down 7.6 points or 0.3%, the Dow futures contract was down 71 points, or 0.3%, while the tech-heavy Nasdaq 100 Futures contract was down 15 points, or 0.2%

Speculation that the Federal Reserve may cut interest rates to offset any weakness in the economy took a knock on Tuesday after NY Fed chief John Williams and Kansas City Fed President Esther George both pointed downplayed the suggestion, Williams in particular noting that the tariff increases levied by the U.S. would tend to increase inflation.

3. Oil prices rebound on IEA warning

Crude oil prices rebounded slightly after the International Energy Agency predicted that the world oil market would flip into deficit in the second quarter.

U.S. crude oil futures, were at $61.20 a barrel, up from an intra-day low of $61.10. Brent futures were at $70.95 a barrel.

Risks to the supply outlook are increasing against a backdrop of rising tension in the Middle East. Iran has accused the U.S. of trying to drag it into a war after Saudi claims of sabotage on its oil tankers and export pipelines earlier this week.

Prices had fallen late on Tuesday after the American Petroleum Institute reported a surprise increase in U.S. crude inventories. The U.S. government will release its own weekly report on oil stocks at 10.30 AM ET.

4. May’s Last Stand

U.K. Prime Minister Theresa May wants to bring her EU Withdrawal Agreement bill back to parliament for a fourth time in June, in one last attempt to ‘deliver Brexit’.

However, the effort looks doomed from the outset. Cross-party talks with the Labour opposition have run into stiff opposition from May’s own party, undermining confidence that any deal struck now would hold in future. Labour’s Deputy Leader John McDonnell said Tuesday the talks were close to collapse.

The pound fell to a near a three-week low overnight and is hovering just above $1.2900.

5. Microsoft Warns of Bug

Microsoft (NASDAQ:MSFT) warned it had discovered a weakness in older versions of its Windows operating system that could be exploited by something similar to the WannaCry worm that caused havoc across the world in 2017.

The company said it wasn’t aware of anyone having exploited the vulnerability to date, but said it’s “highly likely” that someone will try to, now that it’s disclosed. It added that it had now patched the weakness.

The news comes a day after both Intel (NASDAQ:INTC) and Facebook's (NASDAQ:FB) WhatsApp both admitted to security flaws in their products.

Top 5 Things to Know in the Market on Wednesday
 

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Comments (13)
Arvind Patel
Arvind Patel May 16, 2019 9:25AM ET
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An eye for an eye and everybody will be blind. You need a long time frame for fair trade from free trade to be effective as it requires long term plan. Quick tariffs will choke off growth worldwide. It also has to be negotiated between all free trade countries together.
Manish Sinha
Manish Sinha May 15, 2019 11:13AM ET
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This Investing.com always report late. and whatever it anticipate just opposite happens im market. Smells Fishy..
Hank Williams
Hank Williams May 15, 2019 10:10AM ET
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Oil just became very expensive.
Jay King
Jay King May 15, 2019 9:38AM ET
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Trump the first thing will face is impeach not trade war
Ian Sim
Ian Sim May 15, 2019 9:20AM ET
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Please read the result just release for those US economic staristic, do you think DT is doing the right thing for US economy? Please think again..
Ian Sim
Ian Sim May 15, 2019 8:23AM ET
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How much you know about China? Have you been to China? Please visit China and see what is actually happening in China before you comment.
Miguel CastelloGenoves
Calati May 15, 2019 8:23AM ET
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Looks like the strongest economy in the world and people suffering extreme poverty
Miguel CastelloGenoves
Calati May 15, 2019 8:19AM ET
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Nothing about the data of today in Canada and US.
Steve Cunningham
Steve Cunningham May 15, 2019 7:45AM ET
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US. and other counties have higher safety standards.higher environmental standards,higher wages and labor standards along with the highest taxes,tariffs inposed on them and regulations. These politicians then allow these same products stolen from them to make them elsewhere with slave labor, poor environmental and safety conditions to make products and send them back into the countries they stole the ideas from. It is a bit crazy to let it continue and to promote intelectual property theft and to forfeit manifacturing to compete with slaves in other countries. say no to slavery and reject those cost saving products that use poor environmental processes and unsafe slave labor conditions
Ian Sim
Ian Sim May 15, 2019 7:45AM ET
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How much you know about China? Have you been to China? Please visit China and see what is actually happening in China before you comment.
Genero Forbes
Genero Forbes May 15, 2019 6:22AM ET
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All of the stuff in China is made in China, whilst 70% of the stuff in America actually is made China, one blind worker today 100 more to replace him
Dennis Schuman
Dennis Schuman May 15, 2019 6:19AM ET
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Justin....that's the first thing I thought as well...LOL
Dennis Schuman
Dennis Schuman May 15, 2019 6:19AM ET
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Justin....that's the first thing I thought as well...LOL
Vince Lamonte
Vince Lamonte May 15, 2019 6:16AM ET
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With china’s economy slowing at that pace i would think that puts us in an even stronger position going forward in these negotiations
Justin Williams
Justin Williams May 15, 2019 6:10AM ET
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maybe china is slowing because nobody wears safety glasses when grinding and they are all going blind.
 
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