Good morning! Here’s what you need to know in the markets on Tuesday.
It’s PMI day in Europe.Markets will get a snapshot of what’s going on across the continent with data from all of the Eurozone’s biggest economies released on Tuesday morning. Manufacturing PMIs for the UK will also be announced.
The Chinese manufacturing sector slowed at the quickest pace in nearly four and a half years in February. The government’s manufacturing purchasing manager index (PMI) slid to 49.0, below the 49.4 level of January and expectations for a further decline to 49.3, adding to concerns that growth in the world’s second largest economy is continuing to slow.
One of the most senior officials at the US Federal Reserve has warned about potential problems in the country’s economy, the Financial Times reports. Speaking on Monday night, Bob Dudley, the President of the New York Fed, flagged falling inflation, emerging market woes, and global market turmoil as reasons for concern. “At this moment, I judge that the balance of risks to my growth and inflation outlooks may be starting to tilt slightly to the downside,” Dudley said.
Physical currency will become extinct pretty soon. According to global intelligence firm Stratfor, the decline in the number of cash transactions is set to intensify, and soon, no one will be using cash. Stratfor’s report cites “the unstoppable progress of technology” as a reason that cashless transactions will become “ever more prevalent in the global economy.”
Crude oil is on the rise on Tuesday. In Asian trading the price of both major oil benchmarks has jumped, with West Texas Intermediate leading the gains. Just after 6:30 a.m. GMT (1:30 a.m. ET) WTI is up 1.01% to $34.09 per barrel. Brent has gained 0.77%, trading at $36.85 per barrel.
Asian shares popped during trading today. At the close, all of Asia’s biggest share indexes were in positive territory, with the Dow Jones Shanghai index leading gains, up by 2.1%. There were also solid gains for the CSI 300 in China, up by 1.8%, and the Hang Seng in Hong Kong, up 0.9%.
Intercontinental Exchange — the owner of the New York Stock Exchange — is considering making a counter bid for the London Stock Exchange. Bloomberg News reports that Intercontinental is planning the bid,
just a week after the LSE confirmed it was in merger talks with Germany’s Deutsche Boerse.
American shale oil producers are finally expecting a decline in output this year. According to a report from Reuters based on forecasts from 18 U.S. shale oil-oriented firms, output will fall by around 5.6% over the course of 2016, giving some hope to people bullish on the future of oil.
Deposits into Malaysian Prime Minister Najib Razak’s bank accounts ran to hundreds of millions of dollars more than previously identified by probes into state fund 1Malaysia Development Berhad, the Wall Street Journal reported on Monday.
China has jailed two dozen people for their involvement in a massive financial fraud. The 24 people were convicted of illegally raising funds of around 10 billion yuan ($1.5 billion; £1.08 billion) during the decade to 2012 from more than 230,000 investors, mainly senior citizens who put in their life savings, according to Reuters and the Xinhua news agency.