Daily Market Update

Daily Market Update

Daily Market Update European stocks recover; Asia sees gains; US futures higher
US stocks closed higher on Thursday. After disappointing news yesterday on the Eurozone economy, especially from the largest members of the group Germany and France, today has seen recovery. In fact the region has seen the biggest gains since February as investors anticipate the ECB taking further action; quantitative easing the most likely. Markets are keeping a close eye on Russia-Ukraine and Iraq too but this was not a major concern this morning. In Asia most markets closed with gains. US stock futures are higher.

Today’s data
US producer price index at 8.30am ET
Consumer confidence index from University of Michigan at 9.55am ET
Dillard’s earnings before the bell

Banks clampdown on casino money laundering
US regulators are pressuring global banks to do more to tackle the issue of money laundering through casinos. Banks are increasingly being forced into roles that they traditionally don’t do and some say they are being used as additional arms of the regulators – restorative justice perhaps? The issue for the banks is whether spending more time policing the activities of some of their biggest clients means they have less time and resources to monitor their own activities. Read the full story.

Coca Cola gives energy drinks a boost
Coca Cola announced yesterday that it is to acquire a 17 per cent stake in energy drink brand Monster. The news boosted the latter’s stocks by over a fifth in after-hours trading, while Coke saw a more modest 1 per cent rise. The deal involves a product-swap with Monster gaining Coca Cola’s energy drinks brands in exchange for some of its lines including sodas and juices. For Coca Cola it gives greater access to non-soda drinks, which have seen sales fall, while Monster will gain access to Coca Cola’s huge distribution network. Read the full story.

Global tourist spend falls
The amount spent tax-free by tourists has fallen according to figures from duty free shopping firm Global Blue. Second-quarter sales in many of the major markets saw spending by foreign customers fall to its lowest level since 2009. A reduction in the amount being spent by customers from Russia and China is the biggest factor, although the report points out that it’s a reduction of the amount spent rather than tourist numbers that are down. Read the full story.