Read opinions from the Annual UVA Investing Conference on the future of the global economy and the potential impact of President Donald Trump | BIS releases FX code of conduct | Tech bubble concerns emerge
Four leaders -- British Prime Minister Theresa May, French President Emmanuel Macron, Italian Premier Paolo Gentiloni and US President Donald Trump -- are making their debut at the Group of Seven summit amid significant change in national positions. G-7 leaders were once in broad agreement, but they are expected this year to seek common ground and to strive for trust among themselves as they discuss issues related to the economy, trade, climate change and security.
The Bank for International Settlements' Foreign Exchange Working Group has released a code of conduct with 55 principles that cover ethics, transparency, governance, information sharing, electronic trading, algorithmic trading and prime brokerage. "All of us recognize the need to restore the public's faith in the foreign exchange market," said Reserve Bank of Australia Deputy Governor Guy Debelle, chairman of the working group.
The UK's Financial Conduct Authority and Hong Kong's Securities and Futures Commission have launched a partnership to encourage financial-services innovations. The agreement will also foster information exchange, experience sharing and a regulatory referral system.
Stock markets were mixed Friday in Asia-Pacific as weaker oil prices put pressure on energy companies' shares. Japan's Nikkei 225 fell 0.6%; China's Shanghai Composite was up 2.3%; Hong Kong's Hang Seng Index was flat; Australia's S&P/ASX 200 dropped 0.7%; South Korea's Kospi rose 0.5%; and India's Sensex climbed 0.9%.
Disregarding soft economic data and political upheaval in Washington, D.C., investors drove the Standard & Poor's 500 index and the Nasdaq composite to record highs Thursday morning. The consumer discretionary sector and strong figures from Best Buy and other retailers drove the gains.
Investors were disappointed by the extension of oil production curbs from OPEC and other producing nations, causing prices to fall 5% Thursday. "Today the bottom evaporated from the market," said Robert Yawger of Mizuho Americas.
Despite political fears over the euro's future, the currency has emerged as one of the top-performing in the Group of 10 nations this year. Foreign investors are buying into eurozone funds and regional economic growth has exceeded expectations.
Six banks, including Deutsche Bank and Bank of America, have been engaged to manage State Bank of India's 150 billion rupee share sale. "There would be good demand for SBI's share sale, as it is the best story among state-run banks in the country," said Hatim Broachwala, an analyst at Nirmal Bang Institutional Equities.
The Federal Open Market Committee has outlined a plan to reduce the Federal Reserve's $4.5 trillion balance sheet, including gradual tapering of mortgage-backed securities. JPMorgan Chase economist Michael Feroli says the process could start as early as September.
The South African Reserve Bank's Monetary Policy Committee kept its benchmark repurchase rate at 7% for a seventh consecutive meeting. Policymakers said the rand and improving inflation outlook could take a hit from ratings downgrades and politics.
The UK economy expanded 0.2% in the first quarter, slower than widely expected, according to official figures released Thursday. Brexit is seen as a major factor and one expert says that continued weakening in Q2 would be cause for concern.
The Basel Committee on Banking Supervision will set an aggregate floor on banks' internal regulatory capital models, instead of individual floors for certain risks, Secretary General William Coen says. This decision aims to allow banks more flexibility in modeling risks for each portfolio, although the final floor calibration has yet to be agreed and might be a source of contention.
A European Commission proposal to simplify reporting on exchange-traded derivatives under the European Markets Infrastructure Regulation has not been sufficiently explained, some market participants say. In its recent EMIR review, the commission said the current dual-sided reporting status will be changed so only central clearing counterparties need to report ETD trades, but this gives rise to a number of questions and gray areas, they contend.
The People's Bank of China has helped stabilize the yuan by effectively hitching it to the US dollar. The yuan weakened significantly against the dollar last year, while it is up about 1% this year and implied volatility is close to its lowest level in almost two years.
Some provisions of the revised Markets in Financial Instruments Directive might be phased in over a longer period of time to let the industry adjust, though the European Commission isn't calling it a delay. Germany has proposed a transition that extends to July 2018.
Pakistan's upcoming entry into MSCI's emerging-market index is prompting investors to buy a US-listed exchange-traded fund focused on the country's stocks. From May 1 to 24, investors poured $11.8 million into the Global X MSCI Pakistan ETF, according to data compiled by Bloomberg.