The following are 5 main things that need to be known in today's financial market news Thursday, April 4.
1. Trump Scheduled to Meet Chinese Prime Minister Liu He
US President Donald Trump will meet with China's main trade negotiator, deputy prime minister Liu He, in Washington, in what some see as evidence that the two countries are in close proximity to some kind of agreement.
Bloomberg quoted officials as saying that the draft agreement gave China until 2025 to fulfill its commitment to increase purchases of US goods and services, while also allowing US companies to fully own Chinese companies.
However, the Wall Street Journal warned that US pressure to maintain tariffs on Chinese goods remained the main point.
2. Wall Street Heading to Opening Down After Economic Data Weakens
Wall Street is likely to open lower after a burst of disappointing economic data from Europe has panned fears about rising economic strength after yesterday's ADP (NASDAQ: ADP) wage report revealed disappointing data.
At 4:45 p.m., the S & P 500 contract fell 3.4 points, or 0.1%, the Dow 30 contract decreased 26 points, also decreased 0.1%, while the Nasdaq 100 technology index contract weakened 13.25 points, or 0, 2%.
European stocks fell earlier on Thursday morning after Germany announced factory orders shrank 4.2% in February, the sharpest decline in two years. Export orders from outside the euro zone fell very sharply.
3. Report on Unemployment Claims and Fed Speeches
Among the ADP reports and government employment reports that will be confirmed on Friday, the figures for initial jobless claims last week will be released at 7:30 p.m. WIB.
The consensus forecast is for a slight increase in claims to 216,000, although it will still leave the 4-week rolling average, which analysts see as a better reflection of the market, extending the decline that stretches back to February.
Later that day, New York Federal Reserve President John Williams and Cleveland Fed President Loretta Mester will deliver a speech
4. Shocking Q1 Report, Tesla Shares Decline
Tesla (NASDAQ: TSLA) shares were monitored to be opened red after the company reported a 31% drop in shipments in the first quarter to 63,000. Sales were hit by a reduction in US federal tax credit for electric cars at the end of last year, as well as difficulties that occurred in shipments to Europe and China.
The company supports a full year estimate of 360,000 to 400,000, a target that demands a large increase in sales over the next nine months.
Tesla said finishing the quarter with "sufficient" cash, but did not provide further details.
5. Oil Fading Rally
The crude oil price rally faded after US government data showed a surprise increase of 7.2 million barrels in the past week, driven by a rise in net imports.
Benchmark West Texas Intermediate futures contract has shrunk back to $ 62.24 a barrel from a high of $ 62.87 on Wednesday, while the benchmark Brent Crude Oil has retreated to $ 69.03 from a height of just under $ 70.
Thursday's data was somewhat influenced by the closure of the Houston Ship Channel, which has affected the loading and import and export of refineries.