Daily Market Update

Daily Market Update

Daily Market Update
Markets recover as confidence grows
The week has started well for major markets as Friday’s solid US data eased fears about the global economy. Stronger sentiment coupled with positive housing data has boosted optimism and Asia’s markets have seen good trading; Japan’s Nikkei has seen its biggest one-day gains since June 2013. US data wasn’t the only good news for Asia on Friday as China’s central bank pledged more than $32 billion to help some of the country’s biggest banks with lending requirements and boost the economy. In Europe, ongoing economic woes mean markets have started the week lower with Germany among those in the red. US stock futures, gold and oil are all trending upwards.
 
Today’s data
No major economic data due today but earnings reports are scheduled from Apple, Halliburton and IBM.
 
Policy patience is required says Fed policymaker
The current volatility in the markets gives an indication that the Federal Reserve should be patient with policy with regards to stimulus and interest rate rises. That’s according to Fed policymaker Eric Rosengren, Fed president in Boston, who says he can see rates staying low until 2016. Speaking to Reuters, Rosengren predicts unemployment to continue to fall along with lower inflation over the coming quarters. Read the full story.
 
Yahoo set for cost-cutting
Yahoo is expected to announce plans Tuesday for acquisitions and streamlining following a windfall from its investment in Alibaba and public criticism from one of its investors. The company made $5.8 billion from its stake in Alibaba and is likely to use that cash to make acquisitions from the tech sector. The firm is also cutting back on some facilities; closing offices overseas including its large engineering plant in India. Read the full story.
 
Business wants faster US-Canada border crossing
Business leaders from the US and Canada are urging both governments to work with the private sector to speed up the border crossing. Delays at the border; which have increased since 9/11 due to increased security checks; are not only frustrating for businesses, they add costs. One think tank report put the cost to Canada at between 1 and 2 per cent of GDP. Business leaders want the two national administrations to get private sector experts together to solve the problem. Read the full story.
 
IBM to offload semi-conductor business
IBM is expected to announce today that it is to ditch its semiconductor unit. The Wall Street Journal says IBM will pay Globalfoundries $1.5 billion to take over the loss-making business. Speculation has been rife after IBM issued an advisory at the weekend that it would be making a “major business announcement”.