Here is what you need to know.
The Chinese yuan hits its lowest point this year.The offshore yuan fell to 6.6105 per dollar on Wednesday, leaving it at its weakest point versus the greenback since December 20.
China could cut import tariffs on a bunch of goods.“While the US imposes tariffs against China and G7 countries, China will reduce import tariffs by 60% on 1,449 consumer goods from July,” the ANZ analyst Raymond Heung said in a note.
Canada is preparing its own restrictions on steel.Canadian leaders are considering a limit on the amount of steel that can be imported into the country from places including China, Bloomberg says.
The stocks Wall Street hates the most are on a tear, and Morgan Stanley has a strategy to continue profiting from their rise. The most shorted stocks have surged since March, and Morgan Stanley says small caps have been a key driver of the trend.
The big shake-up at GE is a direct challenge to former CEO Jeff Immelt’s most prized achievements. General Electric announced a major reorganization on Tuesday, and it can be viewed as a direct challenge to Immelt’s legacy.
Harley-Davidson got hit with a ‘triple whammy’ that caused it to shift production outside the US. Steel and aluminium tariffs, ending the steel tariff exemption for the European Union, and pulling the US out of the Trans-Pacific Partnership all contributed to Harley-Davidson’s decision to shift some production overseas, according to Chad Bown, a senior fellow at the Peterson Institute for International Economics.
Tesla’s biggest bull explains what the rest of Wall Street is missing. “There is no emergency need for a capital raise at Tesla today,” the New Street Research analyst Pierre Ferragu told Business Insider. “The company is today on a very, very thin line in terms of financing. The balance sheet doesn’t look good and the cash burn of the last four quarters has been enormous – but they are at a turning point.”
Stock markets around the world are mixed. China’s Shanghai Composite (-1.8%) led the decline in Asia, and Germany’s DAX (+0.21%) erased its early losses. The S&P 500 is set to open down 0.24% near 2,716.
Earnings reporting remains light. General Mills reports ahead of the opening bell, and Bed Bath & Beyond releases its quarterly results after markets close.
US economic data keeps coming. Durable goods will be released at 8:30 a.m. ET and pending home sales are due out at 10 a.m. ET. The US 10-year yield is down 3 basis points at 2.85%.