Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading with the Nikkei rising 1.34 per cent to a 4.5-year high, on the FOMC statement and expectations of more easing from the Bank of Japan. Europe is selling off and U.S. futures are modestly lower.
- The European Central Bank has said it will provide Cyprus with Emergency Liquidity Assistance (ELA) only until March 25. But if Cyprus does not have a deal by then, the ECB will pull the plug on the ELA. This comes after the Cypriot parliament rejected a deal that involved a tax on deposits. Officials are now considering nationalizing the pension funds of semi-state owned companies and issuing natural gas linked bonds, and taxes on deposits of the largest investors, according to Reuters. Europe is a complete disaster and its luck may have just run out >
- Euro-area composite PMI which measures services and manufacturing output fell to 46.5 in March, from 47.9 in February. A reading below 50 indicates contraction. German manufacturing PMI fell to 48.9, and French manufacturing PMI held steady at 43.9.
- China HSBC Flash PMI climbed to 51.7 in March, from 50.4 in February. This beat expectations for 50.8. Proof that China is serious about financial reform >
- Initial jobless claims is out at 8:30 a.m. ET, followed by Flash PMI for March at 8:58 a.m. ET. Consensus is for initial claims to rise to 340,000 and for the PMI index to ease to 55. Follow the release at Business Insider >
- Oracle missed expectations when it reported Q3 earnings of $0.65 per share ex-items, on revenue of $8.97 billion. Analysts were looking for earnings of $0.66 per share, on revenue of $9.37 billion. The stock is down over 8 per cent in pre-market trading.
- FedEx profits tumbled 31 per cent in the third quarter on poor airfreight business. The company also lowered its earnings guidance and now expects between $1.90 and $2.10 per share in Q4, and $6 – $6.20 per share for the year, missing expectations for $2.12 and $6.35 per share respectively. JPMorgan: 15 stocks that will save you from a market sell-off >
- Japanese exports fell 2.9 per cent year-over-year (YoY), missing expectations for a 0.9 per cent rise. Imports were up 11.9 per cent of the years.
- The FHFA house price index for January is out at 9 a.m. ET, followed by existing home sales for February and the Philadelphia Fed Survey for March at 10 a.m. ET. Consensus is for home prices to rise 0.7 per cent month-over-month (mum) and for existing home sales to rise to an annual rate of 5.01 million. Meanwhile, the business conditions index is expected to rise to -1.5, from -12.5. Follow the release at Business Insider >
- UK retail sales were up 2.1 per cent month-over-month in February, beating expectations of a 0.4 per cent increase.
- Bonus – Speaking of the Dior campaign ads featuring her, Jennifer Lawrence told Now Magazine, ‘I love Photoshop more than anything in the world. Of course it’s Photoshop – people don’t look like that.’
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