Here are the top five things you need to know in financial markets on Friday, July 12:
1. China trade surplus with U.S. jumps as imports tumble
in yuan terms in the first half of this year, according to the country’s custom agency.
Exports to the U.S. fell 2.6% in the first six months this year from same period a year earlier, while imports shrank 25.7%.
The data will likely displease U.S. President Donald Trump who claimed on Thursday that China had not kept promises to increase purchases of American farm exports.
Bloomberg cited Beijing officials who said that no such agreement had been made, while China’s Commerce Ministry indicated Thursday that .
2. PPI to add to U.S. inflation picture
In a day with few U.S. economic reports, (PPI) arrive at 8:30 AM ET (12:30 GMT) Friday, a day after core consumer prices topped economists’ expectations.
The data will play into remarks this week from Federal Reserve Chairman Jerome Powell who admitted he was worried that weak inflation would be more persistent than anticipated.
Powell’s testimony cemented market expectations that the Fed will cut interest rates by 25 basis points at its July 30-31 meeting. The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, is trading .
3. IEA sees oil supply glut in 2019 as U.S. output jumps
, leading to a supply glut the next nine months, the International Energy Agency (IEA) said on Friday.
In its , the IEA predicted that the demand for OPEC in early 2020 could fall to only 28 million barrels per day (bpd), with non-OPEC expansion in 2020 rising by 2.1 million bpd - a full 2 million bpd of which is expected to come from the U.S.
as heightened tensions in the Persian Gulf and storm warnings in the Gulf of Mexico continued to support prices.
4. DJIA set for new record high
U.S. futures pointed to a higher open on Friday, setting the up for new record highs after the index closed above 27,000 for the first time ever on Thursday. gained 90 points, or 0.3%, by 5:39 AM ET (9:39 GMT), rose 7 points, or 0.2%, while traded up 22 points, or 0.3%.
Perceptions that Powell had all but promised further easing of monetary policy at the end of July supported global shares this week.
on Friday although a profit warning fromDaimler (DE:) put pressure on the auto industry, while Asian shares closed with solid gains.
5. Boeing's 737 program manager retires
in a matter of weeks, according to a company memo, as the company continues to struggle to return its grounded 737 MAX to service.
Boeing (NYSE:) plans to reassign the head of its next airplane project, Mark Jenks, to run the troubled 737 program after two crashes involving its best-selling 737 MAX model killed nearly 350 people in the span of five months.
Jenks had been at the head of Boeing’s potential new mid-market airplane project, which the memo indicated will “continue to operate as a program."