Market Snapshot – Global Stocks Rise Ahead of Trump-Xi Meeting, ADP Report Beats Expectations

Global Stocks Rise Ahead of Trump-Xi Meeting

European stock markets are mostly moving higher, with only the DAX underperforming and down on the day. The German index reached an all-time high this week and at these levels investors are turning cautious, especially ahead of the Trump-Xi meeting.

Other Eurozone markets moved higher though with Spain and Italy outperforming after Liikanen repeated that the Eurozone economy still needs strong monetary support and downward revisions to services PMI readings, which will reduce some of the pressure on Draghi to turn to a less dovish forward guidance.

The FTSE 100 is up despite a rise in Sterling. This followed a largely positive session in Asia overnight China and Twain led Asian markets higher as investors bet on potential gains from the development of a so-called economic zone in Hebei province helped to lift China, while benchmarks in Japan and Australia fluctuated as currency advances weighted on exporters.

ADP Report Beats Expectations

Private sector employment measured by ADP grew by 263,000 in the month of February, beating market expectations of 187,000, according to the ADP Research Institute.

In addition, February numbers revised from a previously reported 298,000 to 245,000.

The US Dollar strengthen versus other currencies and commodities after the report. Gold futures slide to $1250.75 compare to $1254.25 before the data released.

Oil Hits One-Month High Ahead of EIA Report

Crude oil futures are trading higher on Wednesday shortly before the regular session opening. The market had been supported going into the session on the notion that the OPEC-led supply cuts were helping to clear up the global supply glut. Providing an additional price boost today was a bullish report from the American Petroleum Institute (API) and an outage at the largest U.K. North Sea oilfield.

According to the API, U.S. crude inventories fell by a more-than-expected 1.8 million barrels the week-ending March 31. Today’s U.S. Energy Information Administration inventories report is expected to show a 100,000 barrel drawdown. A bigger-than-expected drawdown could trigger a volatility spike to the upside.

Crude oil was up 1.37% to trade at $51.72, Brent oil was up 1.35% at $54.88.

Fed Minutes Meeting in Focus

The FOMC meeting minutes, scheduled for release this afternoon at 18:00 GMT. While the economic projections and recent FOMC member commentary will be expected to be in line with the minutes, there has been plenty of uncertainty over the FED’s balance sheet intentions. Clarity over the FED’s foreseen timelines on selling assets and views on inflation and acceptability of an overshoot of the FED’s 2% objective the key components in today’s minutes.