Oil watch; Huawei bargain; Theresa May quits
London(CNN Business) 1. Oil watch: Investors will be keeping a close eye on oil Friday after it suffered its worst day since Christmas Eve on Thursday.
After starting the day above $61, US oil prices nosedived nearly 6% to a 10-week low of $57.91 a barrel.
Chevron (CVX) and ExxonMobil (XOM) fell 2%, while oil drillers like Hess (HES) plunged more than 7%.
Fears that the trade war between the United States and China could get worse before it gets better are weighing on the oil market. The sector's fortunes are closely tied to expectations for global growth. There's also concern about signs that oil inventories are starting to build up.
US oil prices showed signs of stabilizing early Friday. Crude futures were trading at $58.64, up 1.3%.
2. Huawei bargain: The trade war between the United States and China just got even messier, muddying the picture for investors that are already on edge.
President Donald Trump on Thursday raised the possibility of easing restrictions on Huawei as part of a broader deal with Beijing, despite labeling the Chinese telecommunications giant as "very dangerous."
"It's possible that Huawei even would be included in some kind of trade deal," he said. "If we made a deal, I can imagine Huawei being included in some form of, some part of a trade deal."
The comments appear to run counter to Washington's hardline policy on Huawei. Top officials have repeatedly said Huawei equipment poses a threat to national security and could be used by China for spying.
The Trump administration has been fiercely lobbying allies to keep the Chinese company out of their next-generation 5G networks due to perceived security risks.
3. May mayhem: British Prime Minister Theresa May laid out a timeline for her departure on Friday, triggering a leadership race that will determine the future of Brexit.
May will step down as leader of the Conservative Party on June 7, but remain as prime minister until the party selects a new leader.
Analysts predict that May will be replaced by a Brexit hardliner, increasing the odds that the United Kingdom exits the European Union without a deal — a nightmare scenario for many businesses.
UK markets were little changed Friday, after taking a knock Thursday in anticipation of the announcement. Britain's FTSE 250 index of midsize companies rose 0.4%, while the pound was flat against the dollar.
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4. Global market overview: US stock futures point higher after a traumatic Thursday. The Dow is poised to rise 150 points, of 0.6%. The Nasdaq and S&P 500 are tracking 0.6% higher as well.
European markets opened in the green. Britain's FTSE 100 index jumped 0.7%, while stocks in Germany and France rose more than 0.9%.
Stocks in Asia finished mixed. Hong Kong's Hang Seng index rose 0.3%. Japan's Nikkei fell almost 0.2%.
The Dow dropped 286 points on Thursday, closing down 1.1%. The S&P 500 fell 1.2%, and the Nasdaq dipped 1.6%.
5. Coming this week:
Friday — US durable goods orders; Foot Locker (FL) earnings
