Five Things You Need to Know to Start Your Day: Americas
Stocks rise
Global stocks advanced and US futures pointed to more gains on speculation that a cooling economy will give the Federal Reserve room to lower rates this year. Treasury yields were steady after their largest two-day drop for 2024, with markets shifting their focus to Wednesday’s private employment figures and the all-important payrolls data later this week.
ECB challenge
The week’s other big policy event is Thursday’s European Central Bank meeting, where officials are widely expected to cut rates from a record high. Still, the uptick in euro-zone inflation is increasingly drawing comparisons to the US — fueling concerns that going forward, the ECB could face similar impediments to lowering rates as the Fed.
India rebound
Indian stocks rebounded after an alliance partner of Prime Minister Narendra Modi’s party affirmed support to form a coalition government. The Nifty 50 Index rose more than 2%, recouping some of Tuesday’s loss when the gauge fell the most in four years. The development comes after Modi vowed to continue as India’s prime minister even after his party unexpectedly lost its majority in parliament.
Dalio warning
Ray Dalio, billionaire investor and founder of Bridgewater Associates, said the world is entering a period of greater risks on the back of enormous debt creation, unprecedented internal conflicts in developed countries and great power clashes. He flagged, in particular, the issue of whether the US election result will be accepted by both parties. In addition, US policies toward China may lead to “a great risk of economic sanctions that would be really terrible for the world,” Dalio said.
HPE jumps
Hewlett Packard Enterprise shares surged as much as 16% in premarket trading after the company reported revenue that beat analysts’ estimates on a big jump in sales of servers built to handle artificial intelligence work. Meamwhile, Dollar Tree edged lower after the Wall Street Journal reported it was exploring the sale of its Family Dollar arm.
What we’ve been reading
This is what’s caught our eye over the past 24 hours.
Sunak hits Starmer on taxes, but struggles to damage rival.
David Sacks tried the 2024 alternatives. Now he’s all-in on Trump.
Oil holds near four-month low on signs of rising US stockpiles.
UK landlord likely to join FTSE 100 as Ocado ends six-year stay.
Activists have a simple message for London firms: list elsewhere.
https://www.bloomberg.com/news/newsletters/2024-06-05/five-things-you-need-to-know-to-start-your-day-americas