Good morning! Here’s what you need to know in markets on Wednesday.
It’s FOMC day. The Federal Reserve’s policy-setting committee will publish its latest statement at 7 p.m. BST (2 p.m. ET) on Wednesday. The Federal Open Market Committee (FOMC) is expected to leave its benchmark rate unchanged in a range of 0.25% to 0.50%.
Apple missed on earnings. It missed estimates for earnings per share by $0.09, and the stock fell 8% in after-hours trading. As expected, the company posted its first year-over-year decline in quarterly revenue since 2003.
Australia has fallen into deflation. Headline inflation fell by 0.2% for the quarter, leaving the annual increase at just 1.3%. Not only was the quarterly decline the largest since the December quarter 2008, it left the annual increase at the lowest level since the June quarter 2012.
There’s a ‘dramatic decoupling’ in the markets. According to Andrew Garthwaite, global-equity strategist at Credit Suisse, the price of oil and US Treasury yields have traditionally moved in close concert. Over the last few weeks, however, that has not been true.
A huge merger is brewing in the TV sector. Comcast, the largest U.S. cable operator, is in talks to buy Hollywood studio owner DreamWorks Animation Inc for more than $3 billion, The Wall street Journal reported, citing sources. It was not immediately clear what a deal would mean for DreamWorks Chief Executive Jeffrey Katzenberg, the Journal said.
Mitsubishi’s chief executive and chief operating officer are set to resign over the company’s emissions scandal. Mitsubishi Motors Corp’s top two executives are likely to resign over the Japanese automaker’s manipulation of fuel economy data, Japanese media reported on Wednesday, in a scandal that has halved the company’s market value in a week.
Venezuela’s energy saving measures are getting more and more extreme. Venezuela’s socialist government ordered public workers to work a two-day week on Tuesday, as an energy-saving measure in the crisis-hit South American OPEC country.
Britain’s economy will be significantly damaged by Brexit’s impact on immigration. If there is a Brexit and, in turn, the government decides to restrict immigration, this could have “significant and damaging effects” on British companies and the economy because it would hurt one of the nation’s main sources of workers — EU migrants, according to the National Institute of Economic and Social Research.
Oil is gaining on Wednesday. Just after 6:45 a.m. BST (1:45 a.m. ET) both major crude benchmarks are trading in positive territory. Brent, the international benchmark is up by 1.03% to $46.05 per barrel, while West Texas Intermediate crude have gained 1.07% to trade at $44.51. Both moves come after U.S. industry estimates of stockpiles showed drops, which signalled solid demand prospects.
Asian stocks are a mixed bag. Asian stocks are mixed after an overnight surge in oil prices raised questions about the outlook for the energy sector. Investors also are watching for the outcome of policy meetings by the U.S. Federal Reserve and Bank of Japan. Just after 6:45 a.m. BST (1:45 a.m. ET) the Nikkei in Japan has fallen just over 0.3%, while China’s Dow Jones Shanghai is marginally higher.