Bayer wins over Monsanto, oil moves higher, new data downplays Brexit impact, and the Bank of Japan considers further easing measures. Here are four things to know in the market today, September 14.
1. Bayer to Acquire Monsanto in $66 Billion Deal
After months of negotiations, Monsanto (MON) has agreed to accept Bayer’s (DE: BAYGN) $66 billion takeover bid. The deal, which was announced on Wednesday, is poised to be the largest of the year.
Shares for both companies were up in morning trade following the news.
2. Oil Pushes Higher
Oil climbed higher on Wednesday just ahead of stockpile data, as investors make a bullish bet on the report.
The U.S. Energy Information Administration is slated to release its weekly crude supplies report later this morning. Analysts are expecting an increase of 3.8 million barrels.
The American Petroleum Institute reported on Tuesday after the closing bell that crude oil inventories in the U.S. increased by just 1.4 million barrels last week.
Crude futures were up 0.56% to $45.14. Brent was up 0.36% to $47.27.
3. New Data Downplays Brexit Impact
Unemployment data out of the U.K. on Wednesday was virtually unchanged at 4.9% for July. The report eased concerns that the vote to leave the EU would have a negative impact on the British economy. Employment rates were at 74.5%
Jean-Claude Juncker, European Commissioner, also remarked that the U.K.’s decision to leave the bloc was not the end of the EU.
4. Bank of Japan Considers Further Easing
Reports emerged on Wednesday that the Bank of Japan is considering moving interest rates further into negative territory as part of its policy easing.
The report indicated that the central bank was considering focusing on interest rates rather than bond purchases. The sources also stated that there was still no consensus on whether the central bank will make any moves during its next monetary policy meeting.
