What you need to know before the US open
Weather-hit growth figures are expected to weigh on the open today, with yields on US government bonds falling after the report, along with the dollar.
Fed policymakers are still meeting to discuss further tapering to its asset repurchasing programme, with the upshot expected at 7pm.
US growth almost ground to a halt in the first quarter, increasing an ugly 0.1 per cent- cold weather obviously blighted activity considerably more than predicted. Analysts had been expecting a 1.2 per cent increase in GDP, from the 2.6 per cent in the last quarter of 2013.
Meanwhile, ADP employment numbers were far more encouraging, with 220,000 new jobs added by the private sector this month. 210,000 had been expected.
Corporate news
GlaxoSmithKline reported a 10 per cent drop in quarterly sales today, as chief executive Andrew Witty voiced his preference for deals like GSK’s tie-up with Novartis, rather than “distracting” broad-based mergers.
And Fidelity Investments’ Contrafund said it cut its stake in Yahoo – it’s the internet firm's largest mutual fund shareholder – by 28 per cent in the last quarter.
Data in focus
• 2.45pm: US April Chicago purchasing managers’ index
• 7.00pm: US Fed interest rate decision & April pace of MBS/Treasury purchase program