A look at the day ahead from Dhara Ranasinghe.
A degree of calm appears have to be returning to world stock markets after the previous session's ructions -- European and U.S. stock futures are trading higher and Asia stocks are subdued rather than weak.
The tech-heavy Nasdaq tumbled 1.9% on Tuesday as investors dumped megacap growth stocks amid concerns on rising interest rate and uncertainty over an upcoming jobs report. European shares suffered too.
The most likely reason for the declines, some argue, was probably a bout of profit taking with moves exacerbated by trade thinned by holidays in some markets.
Some backtracking from U.S. Treasury Secretary Janet Yellen may help reassure markets nervous about prospects for central bank tapering.
Yellen said on Tuesday she sees no inflation problem brewing, downplaying earlier comments that rate hikes may be needed to stop the economy overheating as President Joe Biden's spending plans boost growth.
Key data this session include Italian and Spanish service April PMIs, released alongside other final PMI readings in the euro area, and U.S. ISM services data later in the day.
On the earnings front, German logistics company Deutsche Post DPWGn.DE raised its financial outlook after more than tripling its operating earnings in the first quarter. Energy ENR1n.DE lowered the upper end of its target range for 2021 sales, hurt by weaker-than-expected demand, project delays and the crisis coronavirus. India's central bank has asked banks to let certain borrowers have more time to repay loans, among other support measures, as a major second wave of COVID-19 infections grips the country. developments that should provide more direction to markets on Wednesday:
- Scottish nationalists unlikely to win a majority in Thursday's parliamentary election though the Green Party could take as many as nine seats, a Savanta Comres/The Scotsman poll indicated. U.S. ADP (NASDAQ: ADP ) private payrolls report due.
- April services and composite PMIs from Italy, France, Germany, Euro Area, Brazil and US, Euro Area March PPI,
- Monetary policy decision from Brazilian central bank.
- Fed's Mester, Evans and ECB's Lane speak.
- U.S. Treasury quarterly refunding announcement at 14:30 CET.
- Europe earnings: Intesa Sanpaolo (MI: ISP ), PTSB, Directline.
- British online fashion retailer Boohoo BOOH.L reported a 37% jump in full-year earnings.
- Greece is expected to syndicate a new 5-year bond.
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