Daily Market Update

Daily Market Update

Daily Market Update Asia remains subdued but Europe sees early gains
Asian stocks have seen another poor trading day as continuing political unrest in Hong Kong makes investors nervous. Tuesday has seen tens of thousands of pro-democracy protestors on Hong Kong’s streets again. Added to the mix for investors in Asia’s major markets is the forecast from HSBC that Chinese PMI figures due tomorrow will be lower than previously thought. While Hong Kong’s shares have taken a hit due to the unrest there is less impact on the mainland where news images of the unrest are infrequent. Europe’s markets have started the day mostly up, boosted by news that Germany, the largest Eurozone economy, has seen retail sales increase to their highest levels in three years. The August figures follow a sharp decline in July. US stock futures are edging higher.

Today’s data
S&P/Case-Shiller home Price Index at 9am ET
The Conference Board Consumer Confidence figures at 10am ET.
Walgreen are among the companies posting earnings figures today.

Ford slashes profit forecast; shares drop to $15
At a briefing yesterday Ford Motor Company cut its pre-tax profit forecast for this year from $7 billion and $8 billion previously, to $6 billion. The company blamed loses in Russia and South America and higher recall costs in North America. Next year’s pre-tax profits are also expected to be lower than predicted. Ford shares fell 7.5 per cent yesterday and further in after-hours trading. Read the full story.

iPhone 6 to go on sale in China
Finally some good news for Apple as China’s Ministry of Industry and Information Technology has granted a licence for the iPhone 6 and 6 Plus to go on sale there. The licence was delayed by concerns over data privacy concerns and the problems with the iOS8 update. With Samsung launching the Galaxy Note 4 in China last Friday Apple will be keen to get their products to market in a crucial but increasingly competitive smartphone market. Read the full story.
 
Pimco fund loses gold star rating after Gross exit
Uncertainty following the exit of co-founder Bill Gross has prompted Morningstar to downgrade the rating of the Pimco Total Return Fund. Gross quit the firm on Friday after 40 years to join Janus Capital Group. Morningstar’s downgrade of the fund from gold to bronze reflects confidence in its resources and abilities but also uncertainty as to how things will progress post-Gross. Read the full story.