Daily Market Update

Daily Market Update

Daily Market Update World stocks recover
Global stock markets have seen a brighter day’s trading so far as some geopolitical risk reduced and oil prices stayed low. Some positive earnings reports, along with an easing of caution over Ukraine, helped European markets to post some gains. Asian economies were a concern, with China showing surprisingly weak loans data and Japan’s economy shrinking by the largest margin in three years, although this was not as bad as the forecast. Despite the news, Asia’s markets saw some modest gains. US stock futures are rising.

Today’s data
The US Census Bureau reveals July retail data at 8.30am ET.
GDP data for the Eurozone is expected later.
Macy’s reports earnings before the bell with Cisco among those reporting after close.

US banks increase lending
Following years of banks keeping tight controls on lending new data suggests they are now keen to hand over the cash. A report by SNL Financial shows that lending was up by most banks in the last quarter with commercial lending particularly buoyant, followed by auto loans and credit cards. As a result banks are seeing near-record earnings.  The banks see lending as a lower risk now that the economy is improving and stand to benefit when the Fed raises interest rates. Read the full story.
 
China shows softer side
New stats from China suggest a softening of the nation’s economy. The most surprising data for July was the fall in foreign investment which has hit a near 6 year low. The official response pointed to the exceptional rise in figures for June but analysts are concerned that the property market is a risk and that banks are nervous to lend as a result of their exposure. Despite government stimulus measures, the Chinese property market is still declining and causing a drag on the economy as a whole. That said, retail data shows a better month in July than for June and exports are strong. Read the full story.
 
Candy profits crushed
The fickle nature of technology was highlighted after the market closed last night, as King Digital posted its earnings report. The creator of the hugely popular Candy Crush game had a bumpy start to its stock market journey in March, with shares down 16 per cent on day one of trading. A few months on and the latest news isn’t good for investors; bookings down 5 per cent from Q1 to Q2 and expected to see a further drop of 14 to 18 per cent from Q2 to Q3. Analysts confirm the concerns that investors had at the time of the IPO; Candy Crush Saga was the big earner and is now seeing rapid decline and the company’s other games are not seeing enough growth. Read the full story.