Daily Market Update

Daily Market Update

Daily Market Update European shares stall on ECB concerns; Asia chooses profit-taking
The European Central Bank’s policy committee meeting today has promoted caution by investors. With so much weakness in the Eurozone economy and the growing threat of deflation, the hope is for measures such as quantative easing to give the bloc a boost. However, the signs given by the ECB in the last few weeks have done little to suggest that those hopes will be realised. Asian markets have ended the day lower as investors have opted for profit taking. The Bank of Japan has announced no new policy changes in its report today. Markets were fairly unimpressed by the Fed’s Beige Book yesterday which showed positive signs but left many with an expectation of higher interest rates earlier than the ‘late next year’ forecast. US futures are roughly unchanged.

Today’s data
The European Central Bank will announce its monetary policy decisions at 7.45am ET with its President holding his news conference at 8.30am ET
US jobless claims figures are released at 8.30am ET
Payroll firm ADP will release its monthly employment data at 8.15am ET
The Bank of England announces its interest rate decision this morning and is not expected to make any changes.

Better news for Detroit
The automotive industry is seeing a bounce-back following some tough years during the economic crisis. Sales figures for August were 17.5 million vehicles, the highest since January 2006. With fuel and interest rates relatively low and technology helping to boost interest in new vehicles, it’s a welcome shot in the arm for the industry and one that is helping to drive the wider economy. Read the full story.

Bloomberg returns as CEO
After 12 years as mayor of New York Michael Bloomberg never intended to head back to his eponymous company full time but that’s what’s happening. The decision has been prompted by the resignation of current Bloomberg boss Daniel Doctoroff who wants to spend more time on non-profit activities. Bloomberg had hoped to persuade Doctoroff to stay but to no avail. Read the full story.

Commerzbank nears $650m settlement with US regulators
Germany’s Commerzbank is set to become the latest bank to agree a settlement with US regulators following breaches in sanctions. The settlement is said to be in the region of $650 million. An announcement is unlikely to be made until later in the month. Read the full story.

Asians are most active online shoppers
A new survey by Nielsen reveals that Asian shoppers are the most active online with airline tickets, hotel accommodation and clothing among the biggest sellers. This marks a change from 2012 when the survey showed a thirst for smartphones, gaming and software.  Baby products, groceries and cosmetics are also seeing increases in purchases in Asia. As more Asian households gain access to computers and the Internet the figures are set to grow with the market already expected to hit $1.4 trillion in sales by the end of the year. Read the full story.