It will be a busy day for the markets as traders receive crucial data. They will also continue to follow up on the ongoing trade negotiations between the United States and China. The following will be the most important market events that traders will pay attention to today.
Today, Uber will become a public company, in what will be the biggest IPO of the year. The company expects to raise more than $8.1 billion in its IPO. This values the company at more than $82 billion. This makes it the size of Caterpillar and one of the biggest companies in the world. This valuation will be much less than the $120 billion that traders were expecting. Still, the company has never made a profit and in its prospectus, said that it may never do so. In 2018, it lost more than $1.8 billion while its revenues rose by 40% to $11.3 billion.
Other than Uber, investors will pay closer attention to the ongoing trade negotiations between United States and China. This is after Donald Trump announced that new tariffs would go into effect today. Still, Chinese negotiators led by Liu He, who is in Washington hope that the trade war could be averted. In response to the tariffs, China announced that it would retaliate. Traders will want to know how it will do this.
Inflation is one of the two mandates of the Federal Reserve. The other one is unemployment rate. Today, traders will receive more information on the US inflation. The US will release the CPI data for the month of April. The headline CPI is expected to rise by 2.1% in April. This will be higher than the 1.9% increase in March. On a MoM basis, the CPI is expected to rise by 0.4%. The core CPI, which excludes the volatile food and energy products is expected to rise by 2.1% in April.
Canada Employment Numbers
Today, Canada will release its employment numbers today. These numbers are expected to show that the unemployment rate remained at 5.8% in April. The participation rate is expected to remain unchanged at 65.7 while the economy is expected to have created more than 10K jobs in the month. In addition, the building permits are expected to increase by 2.8%.
Finally, traders will receive the GDP numbers from the UK. In the first quarter, the data is expected to show that the economy expanded by 1.8%. This will be higher than the expected 1.4%. On a QoQ basis, the economy is expected to rise by 0.5%. In March, the manufacturing production is expected to have risen by 1.3% while the industrial production is expected to have risen by 0.5%. The business investment is expected to decline by 2.7% as uncertainties on Brexit continue.