Here is what you need to know.
Trump is the Republican party’s “presumptive” nominee. Donald Trump delivered the knockout blow Tuesday evening in Indiana. Trump claimed all 51 delegates while taking 53.3% of the vote. Trump’s victory forced Sen. Ted Cruz to suspend his campaign, and caused Reince Priebus, the Chairman of the Republican National Committee to tweet, “[email protected] will be presumptive @GOP nominee, we all need to unite and focus on defeating @HillaryClinton #NeverClinton.” On the Democratic side, Sen. Bernie Sanders won Indiana, and at least 43 of the 83 delegates.
The ECB’s stimulus is finally starting to show its working. Markit’s latest services PMI data showed “tepid” but “sustained” growth in the eurozone. April’s final reading slipped to 53.1 on expectations it would inch up from 53.2 to 53.3. While the number was down from the preliminary reading, it showed healthy expansion in region’s services sector. According to a statement accompanying the release, “The ‘big-four’ nations all reported expansions of economic activity in April, with Spain seeing the steepest rate of increase.” The euro is weaker by 0.2% at 1.1479.
The US dollar ticks off 16-month lows. The US dollar index trades up 0.3% at 93.25. The bid comes following yesterday’s early slide that pushed action to its lowest level in 16 months. Traders will be watching resistance in the 94.00 area into Friday’s jobs report.
7 banks have agreed to settle rate-rigging claims. Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan Chase & Co and Royal Bank of Scotland Group have agreed to pay $324 million to settle claims they participated in a conspiracy to rig the ISDAfix benchmark from 2009 to 2012. The suit, which was brought by several pension funds and municipalities, claimed that during that time the banks used chatrooms to fix the IDSAfix, a benchmark used to price swaps and interest rate derivatives. HSBC, Morgan Stanley, BNP Paribas, Goldman Sachs, Nomura, UBS, Wells Fargo, and ICAP haven’t yet settled their claims.
Anheuser-Busch InBev missed big on earnings. The world’s largest brewer announced earnings of $0.51 per share, missing the Wall Street estimate of $0.87 by a wide margin. Revenue sank 10.1% versus a year ago to $9.40 billion, which was shy of the $9.56 billion anticipated by the Bloomberg consensus. Anheuser-Busch said beer volumes fell 1.4%, driven by weakness in Brazil. The stock is down 3.7% ahead of the opening bell.
Takata could announce significant recalls. Bloomberg reports, the airbag marker is in talks with US regulators which could produce millions of more recalls. Bloomberg cites the Wall Street Journal, and says 35 million more airbags could be recalled, on top of the 28.8 million that have already taken place. There have been at least 10 deaths due to the faulty devices, Bloomberg says.
Aeropostale has filed for bankruptcy. The teen retailer has filed for chapter 11 bankruptcy. Reuters reports, a court filing shows Aeropostale listed both assets and liabilities of between $100 million and $500 million.
Stock markets around the world are lower. Australia’s ASX (-1.5%) led the way lower overnight, and the Britain’s FTSE (-1.2%) paces the decline in Europe. S&P 500 futures are down 14.25 points at 2042.75.
Earnings reporting remains heavy. Priceline, and Time Warner highlight the names releasing their quarterly results ahead of the opening bell. 21st Century Fox, Allstate, Kraft Heinz, MetLife, Prudential, Tesla Motors, and Whole Foods are among the companies reporting after markets close.
US economic data picks up. ADP employment change will cross the wires at 8:15 a.m. ET ahead of productivity, unit labour costs, and the trade balance which are all set for an 8:30 a.m. release. Then, at 10 a.m. ET, factory orders and ISM services will be announced. Data concludes with the 10:30 a.m. ET announcement of natural gas inventories. The US 10-year yield is unchanged at 1.80%.