Daily Market Update

Daily Market Update

Daily Market Update Eurozone shares rally and Asian markets up following Jackson Hole
Fed chair Janet Yellen’s speech on Friday seemed to suggest interest rate rises sooner rather than later and the Asian markets have reacted with most recording gains today, while the dollar is higher against the yen. In Europe, the focus was more on another of Friday’s symposium speakers; the ECB’s Mario Draghi who said that if Eurozone inflation falls further, the bank is prepared to use all available tools. The comments were taken to suggest that asset purchase or quantative easing could be on the cards. The French Prime Minister has tendered his government’s resignation and a new administration will be taking control of the country’s flagging economy; French stocks are up on the news. The UK markets are closed for a public holiday. US stock futures are higher.
 
Today’s data
The US Census Bureau releases date on new home sales at 10am ET.

Burger King may move to Canada
Coffee and doughnuts could soon be joining Whoppers under one company if a proposed merger goes ahead. In a statement last night Burger King announced plans to acquire Tim Hortons Inc. and form a new publicly listed company based in Canada. Both brands would continue to trade separately. Read the full story.

US housing data expected to show optimism
The latest figures on the US housing market are due this week and experts are predicting that things will be improving after the cold winter. The S&P / Schiller index in May was poor, with far lower numbers than forecast but there is hope that things may have improved since; figures are out tomorrow. Other data releases in recent weeks have shown both sales volume and prices trending up and today the US Census Bureau will release its latest new home sales report. Read the full story.

Economists say the Fed needs to do more
A new survey released today by The National Association for Business Economics says that despite positive tones from the Fed about the state of the economy there is more that needs to be done. The survey shows 53 per cent of the economists polled felt that the Fed’s monetary policy is on track, back that’s down from 57 per cent in February. Those who felt the policies were too stimulative reached 39 per cent. Read the full story.

Health insurance tax credits may hit tax refunds
If you are hoping for a tax refund and get health insurance tax credits then there’s a risk that the refund will be lower than you expected. Tax experts say that many are unaware of the connection between the two but if your income is more than you were expecting when applying for health insurance, you could be hit with hefty repayments if you didn’t flag it up promptly. H & R Block say that if income is greater than forecast now is the time to contact Healthcare.gov or your state insurance exchange. Unfortunately applying for tax credits for health insurance is also likely to change how your file your taxes; the simplified 1040EZ form may not be applicable. Read the full story.