World stocks fall as Obama authorizes action in Iraq
President Obama has authorized airstrikes in northern Iraq and the world’s markets have reacted accordingly. With the ceasefire in Gaza having ended overnight too and the World Health Organization declaring the Ebola outbreak ‘an international emergency’ it is not a good day to take risks. The price of safe-haven investment gold is up and oil is up too over concerns about Iraq’s supply chain. European shares, already hit by the Ukraine crisis, edged lower with Asian markets down and US futures have fallen sharply. The dollar has also dropped to a two-week low.
Worker productivity data from the Bureau for Labor Statistics is released at 8.30am ET. Sotheby’s is the big earnings report before the bell.
US citizens struggling with debt says Fed study
A study by the Federal Reserve shows that a high number of US citizens are struggling to make ends meet. The stats reveal that 40 per cent of households are only just getting by and are putting off large purchases including moving home. The results have just been released and are based on a survey undertaken last fall. Although some economic conditions have improved since then, wage increases in particular continue to be sluggish, although optimistic Americans are not generally expecting any decline in income; 60 per cent believe it will stay at the same level, 21 per cent predict an increase and 16 per cent think they may see a decline. Read the full story.
CBS beats profits forecast despite declining revenue
After a tough time for advertising revenue, CBS posted quarterly profits that beat forecasts but revenue was down more than 5 per cent to slightly lower than analysts expected. Ad revenue was down 7 per cent from a year earlier while licensing and distribution fell by 9.4 per cent. Read the full story.
Chinese trade deficit nearly triples in a year
China’s monthly trade surplus has almost tripled in a year and is currently running at $47.3 billion. The weaker domestic picture, especially in real estate is in contrast to the rapid growth of exports. Read the full story.