Daily Market Update

Daily Market Update

Daily Market Update Hot day for data sees futures higher
The markets are awaiting some key data today and US futures have edged up on the expectations. Much anticipated is the latest GDP results at 8.30am ET; after a shock contraction in Q1, analysts are forecasting a 3 per cent growth for Q2. Before that, there’s the payroll data from ADP at 8.15am ET and this afternoon the Fed will announce its latest policy report which is expected to include another scale-back of its monthly bond buying. Sprint announces results before the bell, with Kraft Foods and Whole Foods after the close.
 
Europe sees dip in stocks while Asia rises
Following news of tougher sanctions on Russia by the European Union, shares in the major European markets dipped as many of the bloc’s countries are heavily reliant on Russian trade. With expectation of growth for the US economy, the Euro fell to an eight month low and despite some encouraging data from some countries there is growing talk of quantative easing by the European Central Bank before the year ends. In Asia, shares were higher as US data is awaited. Japan’s recent stock market highs continued with auto giant Honda posting healthy results yesterday.
 
Twitter posts prediction-shattering results; shares soar
Among the investment community, Twitter was trending last night and again this morning after announcing that user numbers have risen above forecasts and forecast revenue for the year was also higher. The social network was expected to reveal 267 million monthly active users, but the result was 271 million. Ad revenue grew by 129.1 per cent and 81 per cent of that was from the fast growing mobile market. Twitter beats Facebook on percentage terms for mobile, with its rival gaining 62 per cent of its ad revenue from the sector. Twitter shares were up 26 per cent last night and 30 per cent this morning. Read the full story.
 
Amazon primes itself for Indian surge
The Indian economy has been slow over the last decade but there is new optimism with the new pro-business government keen to regain lost ground.  As prosperity begins to increase the nation is adopting more western commercial practices, especially the online shopping boom. While there is some way to go before penetration levels for Internet usage grows close to those in North America, it’s certainly increasing. Online commerce is attracting attention from users and investors. American firms are investing in Indian based e-commerce businesses and Amazon has a prime spot. Although currently foreign investors are restricted on the levels at which they can sell goods directly in India, firms like Amazon own the main platforms for e-commerce in India. There is also expectation that the Modi government will allow greater integration of the type of model Amazon uses elsewhere. Read the full story.
 
Tough bonuses regime announced in UK
New proposals by financial regulators in the UK could see the introduction of one the world’s toughest regimes for bonus payments. The Bank of England and Financial Conduct Authority want more individual responsibility to be borne by bankers, with misconduct resulting in tougher penalties. This is likely to include the repayment of bonuses for up to 7 years where an individual is found guilty of fraud or reckless trading. Lawyers have warned that the laws could mean increases in legal disputes and the business organization CBI says it could make it harder to attract the top banking talent to the City. Read the full story.