10 things you need to know before the opening bell
Royal Dutch Shell bought BG Group for approximately $70 billion. The deal makes Royal Dutch Shell the world's second-largest oil and gas company. BG shareholders will receive about $5.70 in cash and 0.4454 Shell B shares for each BG share. The deal values BG at a 50% premium from Tuesday's closing price.
Iran will join the China-led Asian Infrastructure Investment Bank. Reuters reports, "The decision was made by existing members, including China, Britain, France, India, and Italy."
Greek Prime Minister Alexis Tsipras is meeting with Russian President Vladimir Putin in Moscow. Expectations for any sort of debt deal remain low as Russia is struggling with its own economic weakness. The two sides may discuss a deal that would lift Russia's food import ban. Greece's three-year yield is up 26 basis points at 21.10%.
The Bank of Japan kept policy on hold. Members voted 8-1 in favor of keeping the central bank's aggressive asset-purchase program in place. Board member Takahide Kiuchi was the lone dissenter, calling for the BOJ to cut its asset purchases to 45 trillion yen per month (from 60 trillion to 70 trillion yen per month) and make its 2% inflation target a longer-term objective instead of a benchmark that should be met in "about two years." Japan's yen is stronger by 0.5% at 119.71 per dollar.
German factory orders posted a surprise drop. Factory orders fell 0.9% month-over-month in February, missing the expected 1.5% MoM increase. The Economy Ministry noted: "Due to weak bulk orders, demand was significantly weaker in the first two months"; however, "sentiment indicators are sending positive signals. Overall, the trend in the industry should continue to point moderately upward." Germany's 10-year yield is down 3 basis points at a record-low 0.156%.
Switzerland became the first country to sell 10-year debt at a negative yield. The country sold 232.5 million francs' worth of 10-year bonds at a yield of -0.055%. February's auction drew 0.011%. Switzerland's 10-year yield is little changed at -0.08%.
Saudi Arabia is producing crude oil at a record pace. Saudi oil minister Ali al-Naimi announced production of 10.3 million barrels per day, slightly outpacing the 10.2 million barrels per day produced in August 2013. The number is the highest since record keeping began in the early 1980s. West Texas Intermediate crude oil is down 2.2% at $52.82 per barrel.
Alcoa unofficially begins earnings season. The former Dow component will release its first-quarter results after the closing bell. Analysts are looking for adjusted earnings of $0.26 per share on revenues of $5.94 billion.
Global stock markets are mixed. Hong Kong's Hang Seng (+3.8%) led the way in Asia as traders returned to work after the extended holiday weekend, and China's Shanghai Composite (+0.8%) crossed the 4,000 level for the first time in seven years. In Europe, Britain's FTSE (+0.5%) leads, and Italy's MIB (-0.5%) lags.
The Fed will release the minutes from the March FOMC meeting. The minutes will cross the wires at 2 p.m. ET. There is no economic data scheduled. Treasury will reopen $21 billion 10-year notes at 1 p.m. ET. The US Dollar Index is lower by 0.4% at 97.40.