BHP wants to extend talks with Anglo American
The Volatility Index rose a to two-week high. European indices were poised to open lower, after a negative session on Tuesday. APAC equity markets also lost ground at the close on Wednesday morning.
CPI figures
Australian consumer price inflation unexpectedly picked up in April. Monthly CPI indicator rose at an annual pace of 3.6% in April, up from 3.5% in March and above market forecasts of 3.4%. A five-month high due in part to increases in petrol and holiday costs.
In Japan, consumer confidence fell to 36.2 in May from 38.3 in the previous month, missing market forecasts of 38.9. It was the lowest figures since last November.
IMF forecast of China's economy
The IMF revised upwardly its forecast on China economy. After what it calls a "strong" first quarter, the International Monetary Fund now expects China GDP to grow 5%, up from its earlier forecast of a 4.6%. The IMF also sees a 4.5% expansion in 2025, also up 0.4 percentage points.
In Germany, Gfk consumer confidence rose to -20.9 in June from -24.2 in May. Also at 1pm, Germany consumer price index is expected to accelerate to 2.4% in April YoY, after 2.2% the previous month.
Company news updates
Elsewhere on the equity market, BHP Group said it wanted an Anglo American bid deadline extension to allow for more talks.
Over in the US, HP is expected to show a fall in quarterly revenue tonight after the US closing bell. Revenue is seen falling by 2.4% to $12.59 billion. The street anticipates earnings of 81 cents per share. HP's EPS guidance was between $0.76 and $0.86.
American Airlines shares tanked in extended trading yesterday, after the company cut its second-quarter profit forecast. The carrier now sees earnings of $1 to $1.15 per share, compared with its previous forecast of between $1.15 and $1.45 per share. Total revenue per available seat mile is seen falling by about 5% to 6% from a year ago. That compares with a decline of 1% to 3% expected earlier.
Hess shareholders approved a proposed $53 billion merger with Chevron. The two groups were still far from concluding a deal. The transaction still requires regulatory approval, which could come next month. It also will have to face arbitration with two giants of the sector, Exxon Mobil and CNOOC, Hess's partners in Guyana. Exxon and CNOOC have already asserted they have a right of first refusal to any sale of Hess's Guyana assets.
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