Daily Market Update

Daily Market Update

Daily Market Update
US data provides a boost but global concern dominates
Yesterday provided more positive data on the US economy which gave a temporary shot in the arm for world markets but concerns elsewhere continue to subdue investors. A rare mix of warning signs including the Ebola virus, potential Eurozone recession and weaker performance in Japan and China is conspiring to push investors to the safe havens. Asian markets continue mixed with Singapore and Hong Kong performing better than China and Japan. In Europe, despite the gloomy picture the major markets are all in positive territory so far today. That said, gold is down slightly this morning while oil has seen some gains but is still well down. US stock futures are climbing.
 
Today’s data
Housing starts data at 8.30am ET
The Reuter's/University of Michigan's consumer sentiment index is revealed at 9.55am ET
Fed chair Janet Yellen speaks to the Boston Fed conference on the inequality of economic opportunity at 8.35am ET
General Electric and Morgan Stanley are among the companies reporting results today.
 
US oil industry could cope with declines down to $50 a barrel
A report by Citigroup says that the US oil industry can withstand a drop to around $50 a barrel before production would stall. With prices hovering around a two-year low causing concern in some quarters, the analysis of the industry shows that at $70 production would still increase and only if prices plummeted to $50 or below would we see zero growth and the potential for the closure of some oil fields. Read the full story.
 
Google shares slip on missed targets
Google’s shares have slipped back after yesterday evening’s results disappointed. The firm’s revenue missed estimates and the amount it receives when internet users click on adverts is continuing to decline; although not as much as forecast. Google’s share price dropped 6 per cent before recovering later after earnings came in at $6.35 per share on revenue of $16.52; the forecast was for $6.53 on $16.57. Although these results missed the mark, the company is generally performing well and continues to add new revenue streams to its search and advertising business. Read the full story.
 
Goldman Sachs puts the brakes on bankers’ bonuses
Goldman Sachs has moved to moderate the level of bonuses paid to its employees. The bank posted quarterly results yesterday with a 25 per cent increase in revenue but bonuses have stayed around the same level as a year ago. Those close to the bank say that there is a mentality shift towards reigning in compensation for staff to boost profits and deliver better returns to shareholders. Read the full story.