Top 5 Things to Know in the Market on Thursday

5 key factors for the markets on Thursday

Investing.com – Here are the top five things you need to know in financial markets on Thursday, June 28:

1. Eyes on Washington

Trade tensions will continue to be the focus for markets on Thursday after the rocky ride seen a day earlier as investors continue to watch Washington for signals on how U.S. President Donald Trump will move forward with tariffs.

The interpretations that Trump was choosing a less confrontational approach on Chinese investments in technology initially buoyed stocks on Wednesday until the director of the U.S. National Economic Council Larry Kudlow stepped in to reject the idea that the White House had softened its stance on China.

Also in focus, U.S. National Security Adviser John Bolton said Wednesday that Trump and Russian President Vladmir Putin will hold their first bilateral summit. Bolton indicated that the time and place of the meeting will be released simultaneously by U.S. and Russian officials on Thursday.

2. U.S. stocks set to recover

U.S. stocks look set for a recovery on Thursday after Kudlow’s comments took the wind out of buyers’ sails a day earlier. At 5:57AM ET (9:57GMT), the blue-chip Dow futures gained 30 points, or 0.12%, S&P 500 futures rose 4 points, or 0.15%, while the Nasdaq 100 futures traded up 14 points, or 0.20%.

Elsewhere, European shares showed a gloomier outlook on Thursday as trade tensions and political concerns took their toll on stocks. European leaders gathered in Brussels for a summit in which discussions over the UK’s exit from the European Union will be high on the agenda.

Earlier, Asian stock markets slumped to nine-month lows on Thursday as investors worried that the Trump administration’s approach to trade is harming global economic growth. Although Japan’s Nikkei 225 ended little changed, China’s Shanghai Composite closed down 0.9%.

3. Final Q1 GDP reading in focus

The U.S. is to release final figures on first-quarter economic growth at 8:30AM ET (12:30GMT) Thursday.

It is expected to confirm that the economy expanded at a relatively-healthy 2.2% annual rate in the first three months of 2018, unchanged from a preliminary estimate. It grew by 2.9% in the fourth quarter of last year.

The reading comes even after U.S. Treasury Secretary Steven Munchin said Wednesday that he expects a big number for second quarter GDP. The Atlanta Fed’s latest forecast for economic growth in the April-June quarter was for 4.5%.

Also on Thursday’s economic docket, investors will get the latest reading on weekly jobless claims, while St. Louis Fed president James Bullard and Atlanta Fed chief Raphael Bostic could give hints on the future path of monetary policy later in the session.

4. Apple-Samsung feud comes to close

Apple (NASDAQ:AAPL) and Samsung (KS:005930) have announced the end of their longstanding feud over patents that began in 2011 and went all the way to the Supreme Court.

The two tech giants notified the judge at a district court in San Jose, California late on Wednesday that “they have agreed to drop and settle their remaining claims and counterclaims in this matter”.

The terms of the settlement were not disclosed.

5. Cable hits 7-month low

The pound fell to seven-month lows against the dollar Thursday as Bank of England Deputy Governor Jon Cunliffe’s warning about household debt levels and concerns over Brexit weighed.

Sterling came under pressure after Cunliffe said in a radio interview that he was worried that British households with high debt levels could be vulnerable in a recession.

Meanwhile, concerns over Brexit also weighed after Irish PM Irish leader Leo Varadkar said overnight that the lack of progress in talks was “disappointing”.

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