Here is what you need to know.
Nuclear talks with Iran are may end with no deal.The deadline for a deal has passed, but the two sides continue negotiations in an effort to reach a last-minute compromise. Reports suggest there is a “broad frame work of understanding,” but that the two sides remain apart on key issues. Meanwhile, WTI crude oil is down 0.5% at $US47.36 per barrel.
A deal between Greece and its creditors remains elusive. Tuesday, Greek leaders left Brussels without a deal that would give the debt-laden country access to bailout funds. April 9 is setting up as a key date as the government must make meet its debt obligation to the Interational Monetary Fund. Reports crossing the wires on Wednesday suggest the Greek government is now looking to strengthen its ties with Russia, and a meeting between the countries’ leaders is scheduled for April 8. Greece’s 3-year yield is up 16 basis points at 22.29%.
China’s Manufacturing data improved. Manufacturing PMI regained the expansion line with a print of 50.1 and outpaced the 49.8 that was expected. HSBC Final Manufacturing PMI remained in contraction with a 49.6, but beat the 49.3 estimate. China’s yuan was little changed at 6.1982 to the dollar.
Japan’s Tankan surveys were mixed. The non-manufacturing sentiment index beat expectations with a reading of 19 (17 expected) while the manufacturing number missed with a print of 12 (14 expected). An astounding 83% of large manufacturers described conditions as “not so favourable” or “unfavorable.” Japan’s yen is flat at 120.10 to the dollar.
Eurozone Manufacturing PMI is at a 10-month high. The eurozone saw a PMI reading of 52.2, its best since May. Spain’s reading of 54.3 missed expectations, but remains the strongest in the region. France topped forecasts with a 48.8 print, but the number still points to a contracting manufacturing sector. The euro is up 0.2% at $US1.0757.
GoDaddy’s IPO prices at $US20 per share. The price is above the $US17 to $US19 range that had been anticipated for the intitial public offering. The stock will trade on the New York Stock Exchange under the ticker ‘GDDY’.
Etsy seeks a $US1.78 bilion valuation as it launches it IPO roadshow. The online craft marketplace hopes to sell 16.67 million shares at an IPO price of between $US14 and $US16 per share. The money will be used “for working capital and general corporate purposes, including continued investments in the growth of the business.”
Wal-Mart asks Arkansas’ governor to veto a ‘religious freedom’ law. A bill similar to the one passed in Indiana has cleared the Arkansas house, prompting the world’s largest retailer to speak out against the legislation. “Every day, in our stores, we see firsthand the benefits diversity and inclusion have on our associates, customers and communities we serve. It all starts with our core basic belief of respect for the individual,” Wal-Mart CEO Doug McMillon said in a statement.
Global stock markets are higher. France’s CAC (+1.3%) leads the advance in Europe while China’s Shanghai Composite (+1.8%) paced the rally in Asia. Japan’s Nikkei (-0.9%) was a notable laggard.
US economic data is moderate. ADP Employment Change is due out at 8:15 a.m. ET while ISM Manufacturing and construction spending are set to cross the wires at 10 a.m. ET. Crude oil inventories are scheduled for release at 10:30 a.m. ET. The US 10-year yield is down 1 basis point at 1.92%.