Daily Market Update

Daily Market Update

Daily Market Update
World stocks lower as investors move to safe havens

Global growth concerns have pushed stocks lower again today as investors move towards safe havens such as gold and US government bonds. In Asia, Japan’s Nikkei suffered the biggest losses with close to a 3 per cent drop, but all the major markets were down. Europe has been edging lower too. Yesterday’s dip for the dollar index has been partly recovered this morning. US stock futures are higher along with gold while oil continues its downward trend.  
 
Today’s data

The National Federation of Independent Businesses ‘Small Business Optimism Index’ is revealed at 7.30am ET
International Council of Shopping Centers releases data on retail chain sales at 7.45am ET
Retail ‘Redbook’ data published at 8.55am ET
Citigroup, JP Morgan Chase and Dominos Pizza all report earnings today.
 
World Bank warns of huge economic losses from Ebola

The human tragedy of the Ebola outbreak is dominating headlines around the world but there is another story emerging; the financial impact. Analysts are working to ascertain how much damage the outbreak in Africa could do to the global economy if it is not contained in the coming months. The World Bank estimates that if the virus spreads into countries neighboring Liberia, Guinea and Sierra Leone the economic drain could be as much as $32.6 billion by the end of next year. This figure would of course be tiny compared to the impact of a global pandemic. At the weekend Christine Lagarde of the International Monetary Fund urged people not isolate the whole of Africa in terms of investment and commerce. Read the full story.
 
Lenders try to claw back home loan debts even after foreclosure

Thousands who believe their worst times are behind them after defaulting on home loans may find there’s more pain to come. Lenders who have sold properties after foreclosures are ramping up pressure on former homeowners for cash shortfalls. With $1 trillion worth of foreclosed debts during the financial crisis many lenders suffered huge losses and are now seeking to claw back cash from those who lost their homes and have since rebuilt their financial security. Among the lenders trying to cut their losses are government-controlled companies Fannie Mae and Freddie Mac. Read the full story.
 
Credit Suisse: The world is getting richer

A new report from Credit Suisse shows that the world’s wealth has increased by $20.1 trillion in the last year; that’s 20 per cent higher than the pre-crisis peak of 2007. The Global Wealth Report shows that the US made the largest contribution to world wealth ($8.9 trillion in household wealth) followed by Europe ($8.1 trillion). China lagged well behind on $715 billion, a small amount given that it has more than a fifth of the world’s adult population. Read the full story.