Daily Market Update

Daily Market Update

Daily Market Update Europe and Asia markets end bumpy week on a positive note
Stock markets in Europe and Asia have seen gains today after a bumpy ride this week. Recent positive data on the US economy continues to fuel expectations of an early rate rise in the US although yesterday saw higher than expected jobless claims. While new EU sanctions on Russia and uncertainty over Scotland’s independence vote add cautious notes. The US dollar is heading for its 9th week of gains and US treasury bonds have risen to their highest in over a month. US stock futures are largely flat.
 
Today’s data
U.S. Census Bureau will report August retail sales at 8.30am ET.
The University of Michigan posts monthly consumer sentiment index at 9.55am ET
Plus data on imports and business inventories.
 
Hewlett Packard fined over bribery of Russian officials
Tech giant Hewlett Packard has been fined almost $58 million by US officials after pleading guilty to bribing Russian officials to secure a lucrative contract. A statement from the US Department of Justice says that HP paid the Russian Prosecutor General’s Office at least $9 million to win contracts worth $42 million for the supply of computers and other technology. The Russian officials spent the money on luxury cars, travel, furniture and clothing. Read the full story.
 
Tax breaks deal brings electric car manufacturer to Nevada
The Governor of Nevada has signed-off a package of incentives for electric car manufacturer Tesla to build a new factory in the state. The California company considered other states including New Mexico and Texas before settling on Nevada. It will now receive a $1.3 billion package of tax breaks and other incentives and will build a massive new facility just outside Reno. The deal will create jobs for state residents and will help to boost the economy of the state which was hard hit by the mortgage meltdown and has some way to go to reach full recovery. Read the full story.
 
Canada’s employers get an insurance break
Canada’s finance minister Joe Oliver has announced a cut on employment insurance premiums which will see businesses payroll costs benefit by around 15 per cent. In a bid to stimulate hiring, Oliver cut the rate from $1.88 per $100 to $1.70. For businesses currently paying $15,000 in premiums it represents a large saving and may be the deciding factor on hiring new employees. It’s estimated that the move could create 25,000 jobs when it comes into effect next year; it will run through to 2016. Read the full story.