Daily Market Update

Daily Market Update

Daily Market Update Global stocks rise as concerns ease
Markets were largely up this morning as investors’ concerns over European bank profits took a back seat while economic events and corporate earnings boosted optimism. Analysts assessed and eased concern over Portugal’s banking sector and the wider Eurozone financial system on Friday, but despite underlying concern over the region’s finances, markets were up on Monday morning. Asian shares saw slight rises with even Japan improving after a long losing streak. The price of gold, the ‘safe haven’ investment, was down as investors’ confidence grew in other places to put their cash.

This week’s main events
The European Central Bank’s president will address the European Parliament today. Tuesday and Wednesday will see Fed chair Janet Yellen in front of Congress with the markets awaiting indicators on continuing low interest rates. There’s also data on retail, production and housing this week. China will also release retail and GDP figures. Trade talks between the US and Europe will continue this week too.

Citigroup reaches $7bn deal with US authorities
It’s been announced this morning that Citigroup and the US Justice Department have agreed a deal relating to mortgage-backed securities that the bank sold in the lead up to the financial crisis. The deal includes $4 billion in cash and $2.5 billion to help struggling consumers, plus $500 million in payments to state attorneys general and the Federal Deposit Insurance Corporation. The deal means the end to the possibility of a costly lawsuit. Read the full story.

AbbVie deal gets approval from Shire
The bidding began two months ago and now the board of UK drugs firm Shire says it is recommending the latest offer from US firm AbbVie to its shareholders. Last Tuesday the North Chicago based company raised its offer to $87.54 per share. The deal, subject to other terms, would give AbbVie shareholders 25 per cent of the new combined firm and would come with tax advantages for the US firm. Read the full story.

Change at the top for Germany?
She may be celebrating a World Cup win for her nation’s soccer team but could German chancellor Angela Merkel be substituted before completing the whole match? German magazine Der Spiegel thinks so; speculating at the weekend that the premier may step down before the country’s 2017 election. The speculation is being denied but it’s not the kind of media coverage that the major driver in the unsteady Eurozone needs now. There are concerns that Merkel’s tough economic stance may not be the policy of any successor. Read the full story.

Inflation falls in India
It’s early days for the new government, but with India’s economy paramount for Prime Minister Narendra Modi , the country’s latest inflation figures are a step in the right direction. Asia’s third largest economy is struggling with the cost of living and inflation has proved super tough. In June though, the benchmark figure dropped to 5.4 per cent, its lowest level for four months. The Modi administration is keen to revive the fortunes of the nation’s economy, which has stalled over recent years. 

Chinese take a bite out of Apple
Apple is denying claims by the Chinese Institute for Security that a feature of their iPhone operating system is a threat to privacy and national security. The frequent locations setting, which can be toggled on or off by users of iOS7, could be used to gather ‘extremely sensitive data’ says the Institute. Apple has stated that its GPS functionality does not allow data to be accessed and that governments do not have access its servers. The issue is seen as a sign of distrust between the US and China following recent cyber-espionage allegations. Read the full story.