10 Things You Need To Know Before The Opening Bell

Kendra Spears

Good morning. Here’s what you need to know.

  • Markets in Asia were mixed in overnight trading. The Japanese Nikkei fell 0.4% while the Shanghai Composite retreated 1.0%. European markets are mostly lower except for Germany and London, which are both currently up around 0.5%. In the United States, futures point to a positive open.
  • China’s official manufacturing PMI fell to 50.6 in April from 50.9 in March, below economists’ expectations fro a drop to 50.7. Any PMI reading above 50 signals expansion, so the 50.6 reading indicates that Chinese manufacturing is still expanding, but the pace of growth is slowing.
  • South Korean exports seemed to confirm the theme, posting only 0.4% year-over-year growth in April versus economists’ consensus prediction for a 2.0% advance. South Korean exports are referred to as the “economic canary in the coal mine” due to the country’s close trade relationship with China.
  • In the U.K., manufacturing PMI unexpectedly rose to 49.8 in April from 48.6 in March, beating estimates for a tick down to 48.5. The 49.8 reading is below 50, which means the U.K. manufacturing sector still contracted in April, but much less than it did in March. 
  • ADP’s monthly employment report is released at 8:15 AM ET. Economists expect the report to reveal that 150,000 private payrolls were created in the U.S. economy in April, down from 158,000 in March. The release foreshadows the bigger nonfarm payrolls report due out on Friday.
  • At 8:58 AM, Markit releases its final reading of U.S. manufacturing PMI for the month of April. Economists expect the index to come in at 52.0, matching the flash estimate published earlier this month, but down from March’s 54.9 reading.
  • The ISM Manufacturing index follows at 10 AM. Economists predict the index will moderate to 50.6 from last month’s 51.3 reading, showing further evidence of slowing growth in American manufacturing.
  • Also out at 10 AM are data on construction spending for the month of March. The consensus expectation is that growth in construction spending slowed to 0.6% in March after expanding 1.2% in February.
  • At 2 PM ET, the Federal Reserve announces its latest FOMC monetary policy decision. Observers will be watching closely for any change in the language to acknowledge the recent slowdown in economic indicators, especially those dealing with inflation, which has trended down in recent months. This likely provides impetus for continued quantitative easing.
  • Throughout the day, global automakers will be reporting April sales figures. Analysts predict total vehicle sales were 15.22 million units at a seasonally adjusted annualized rate in April, unchanged from March. Follow all of the data LIVE on Business Insider >
  • BONUS: Runway model Kendra Spears is set to marry Prince Rahim Aga Khan, son of the Imam of the global community of the Shia Ismaili Muslims.

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