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Top 5 Things to Know in The Market on Tuesday

Published 26/03/2019, 09:47
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Investing.com - Here are the top five things you need to know in financial markets on Tuesday, March 26:

1. U.S. Treasury Yield Curve Remains Inverted

The U.S. Treasury yield curve remained inverted for the third consecutive session, stoking fears of an impending U.S. recession.

At 5:45 AM ET (09:45 GMT), the yield on the benchmark 10-year Treasury note was at 2.44%, after having hit a 16-month low of 2.39% last Friday.

Meanwhile, the yield on the three-month Treasury bill stood at 2.46%.

Read more: Widening U.S. Yield Curve Inversion Jolts Investors; Panic Averted For Now: Darrell Delamaide

2. U.S. Futures Edge Higher

U.S. stock index futures pointed to a cautiously higher open, with investors keeping their eyes on movements in the U.S. Treasury market.

The blue-chip Dow futures were up 100 points, or about 0.4%, the S&P 500 futures rose 10 points, or around 0.35%, while the tech-heavy Nasdaq 100 futures indicated a gain of 25 points, or roughly 0.35%.

Elsewhere, European stocks were subdued in mid-morning trade, with major markets across the region moving in different directions. Bourses in Paris and London were slightly higher, while stocks in Germany and Madrid slipped.

Airbus (PA:AIR) rose more than 2% after the European planemaker secured an order from China for 300 jets, in a deal estimated to be worth tens of billions of dollars.

Brexit remained in focus after U.K. lawmakers voted on Monday night to take control of the Brexit process from the government of Prime Minister Theresa May.

Earlier, markets in Asia closed mixed, with Japan's Nikkei jumping 2%. Shares in mainland China however ended lower, with the Shanghai Composite down 1.5%.

3. Busy Day on the Economic Calendar

Several important U.S. economic reports are expected today, with February housing data topping the agenda.

The Commerce Department at 8:30AM ET (12:30 GMT) is expected to report building permits fell 1.3% last month to 1.320 million units.

Housing starts, meanwhile, are expected to drop 0.8% to 1.213 million units.

The latest report on home prices from S&P/Case-Shiller is then due at 9AM ET (13:00 GMT).

Recent data has painted a worrying picture of the U.S. housing market, which is struggling with rising mortgage rates and tight inventory.

Later, the Conference Board releases its March update on consumer confidence at 10:00AM ET (14:00 GMT). The consensus forecast is for a reading of 132.0, up from 131.4 in February.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was little changed at 96.10.

4. API Oil Supply Report

In commodities, the American Petroleum Institute is due to release its weekly report for the week ended March 22 at 4:30PM ET (20:30 GMT), amid expectations of a decline of about 2.4 million barrels.

U.S. West Texas Intermediate crude futures were up 66 cents, or around 1.1%, at $59.48 a barrel, while international Brent crude oil futures tacked on 50 cents, or roughly 0.8%, to $67.33 per barrel.

With less than a week to the end of the first quarter, WTI is up 30% on the year and Brent 25%, with both benchmarks benefiting extensively from aggressive Saudi-led production cuts since the start of January, along with other constraints on supplies from Iran and Venezuela, notably in the form of U.S. sanctions.

5. Uber Buys Mideast Rival Careem in $3.1 Billion Deal

Ride-hailing service firm Uber announced it has acquired its Middle East rival Careem for $3.1 billion, in an effort to buy dominance in a competitive region ahead of a hotly anticipated initial public offering.

Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Dubai-based Careem.

The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies.

Uber will kick off its IPO next month, and is reportedly seeking a valuation of at least $100 billion.

-- Reuters contributed to this report

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