Daily Market Update

Daily Market Update

Daily Market Update Stock market gains after Friday’s Ukraine concerns
After worrying signs in Ukraine on Friday saw European stocks fall, an easing of tension over the weekend has seen a strong rebound this morning. There has also been a good recovery for the dollar against a number of currencies. Oil prices also returned to roughly where they were before Friday’s concerns. Asian shares were mostly higher although the Russia-Ukraine issue increased caution, along with poorer than hoped data on Chinese foreign direct investment which hit a 2 year low in July. US stocks have been edging up this morning.
 
Today’s data
US housing market data from the National Association of Home Builders due at 10am ET.
Retail sector earnings reports after the closing bell from American Apparel and Urban Outfitters.
 
Embarrassment for PwC
PricewaterhouseCoopers is facing regulatory penalties according to confidential documents and interviews. The New York Times reports that the global consulting firm which works with businesses to ensure regulatory compliance has itself been accused of ‘watering down’ a report on a Japanese bank and will face a $25 million fine and restrictions on some of its business activities in New York. While PwC has not broken the law it has been accused of lacking the integrity expected by a firm in its position.
 
Yellen to urge patience on rate rises
Federal Reserve chair Janet Yellen will be speaking from Jackson Hole this week and will say that the drop in unemployment rates shouldn’t raise expectations of an interest rate rise. Forecasters expect that Yellen will explain why she believes that there is still plenty of slack in the labor market and there is little expectation of a diversion from the Fed’s stated aims. The monthly bond-buying program is on target to end this fall with interest rate rises unlikely until the second half of 2015. Read the full story.
 
No concern for Canada’s big six
The Royal Bank of Canada will release its earnings report this Friday; the first of the big six lenders to do so with the others following over the next week. Few analysts are predicting anything other than growth, fuelled by investments but also greater lending especially in the mortgage sector. The hot housing market is good news for the banks and their increased stability and profits is also good news for homebuyers as it should mean loans are more available and deals become more competitive. Read the full story.
 
Retailers hit by credit card hackers
Two of the biggest US retailers, Albertson’s and SuperValu ,were hit by hackers last week. Cyber criminals gained access to debit and credit card networks used by the firms and their subsidiaries. It’s not yet known how many customers may have been affected or whether any data was actually stole. Read the full story.