Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Main Trading Event Of The Day: U.S. Trade Balance @ 12.30 GMT
WHAT WE’RE WATCHING TODAY
G7 Powers Meet To Discuss Policy Issues Without Russia
The world’s leading industrialized nations will meet without Russia today for the first time in 17 years. President Vladimir Putin is being left out of the talks in retaliation for his seizure of Crimea and Russia’s part in destabilizing eastern Ukraine. The two-day Group of Seven (G7) summit will cover foreign policy, economics, trade and energy security. Energy security is an issue of particularly high sensitivity to Europe after months of tension with Moscow, which supplies nearly a third of Europe’s oil and gas. The decision to drop Russia from the group was taken by its other members the United States, Germany, France, Britain, Canada, Japan and Italy in March, after Moscow seized Crimea and annexed it, a move not recognized internationally. The Wednesday-Thursday summit will include discussions on foreign policy, including Russia and EU assistance to Ukraine, as well as Syria, Afghanistan, Mali, the Central African Republic and North Korea, officials said. Economic discussions on Thursday morning are expected to be dominated by trade, including ongoing EU/U.S., EU/Canada and EU/Japan free-trade negotiations, cooperation on tax avoidance and efforts to sustain the global economic recovery. Supporting growth and jobs remains the key priority for the G-7 members. Leaders are expected to call for continued and sustained growth in order to bring down unemployment, particularly among young people and the long-term unemployed.
Gold Trades Near Four-Month Low Before ECB Meeting & U.S. Jobs Report
Gold held near a four-month low as investors awaited the European Central Bank meeting tomorrow at which policy makers may add to stimulus along with a U.S. labour report which may back further cuts to the Federal Reserve’s bond purchases. Gold for immediate delivery traded at $1,245.19 an ounce from $1,244.95 yesterday. The metal fell to $1,240.73 yesterday, the lowest level since Jan. 31, before rebounding as the Standard & Poor’s 500 Index retreated from a record and the euro rose from a three-month low against the dollar. Friday’s Non-Farm Payrolls are forecast to show employers added 215,000 jobs in the U.S., just above this year’s average, backing the case for the Fed to further reduce asset purchases as the economy recovers.
Tesco Announces 3.7% Drop In Same-Store Sales
Supermarket chain Tesco has just reported a sharp fall in first-quarter sales, hurt by price cuts and subdued consumer spending. Industry price cuts have driven lower growth in recent months for the U.K’s big 4 supermarkets including market-leader Tesco. As yet, it is unclear whether these price cuts are part of normal industry price investment or something more material and the fact that the food commodity price index supports lower food inflation has not helped clarify the issue. Tesco shares closed at £3.34 on Tuesday, down 11 percent since the start of the year.
That sums up today’s highlights! Keep posted on all the day’s trading events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.
