Daily Market Update

Daily Market Update

Daily Market Update
European shares rebound on stimulus rumor; Asia largely positive
European markets have been higher so far today, buoyed by earnings and increasing talk of further stimulus measures from the ECB. The rumor is that the central bank is considering a corporate bond buying program, possibly before the year ends. The bank has already started a private sector asset-buying program in a bid to tackle deflation that has already hit 5 of the 18 Eurozone members. Today’s positive note may be short-lived though with regional business data due tomorrow. Positivity in Europe, yesterday’s gains on wall Street and more reassuring data on China’s economy have combined to ensure that all major Asian markets have closed higher. US futures and oil are trending higher while gold is edging lower.
 
Today’s data
MBA Purchase Applications at 7am ET
Consumer Price Index at 8.30am ET
EIA Petroleum Report at 10.30am ET
First Capital Bank, Tupperware Brand and Xerox are among those reporting today.
 
Wall Street has its best day this year
The major Wall Street indexes were all higher yesterday, boosted by better-than-expected results from the tech sector. Apple led the upbeat tone with iPhone sales exceeding forecasts; Yahoo also posted good results. The Nasdaq Composite Index saw its highest one-day gains in more than two years.
 
Buffett buffeted
Warren Buffett’s week hasn’t started well; Berkshire Hathaway has lost more than $2 billion so far as its shares in Coca-Cola and IBM plunged. This is following his recent losses from an investment in UK grocery giant Tesco. However Buffett’s fortunes are far from weak with Berkshire Hathaway’s shares boosted by plans for global expansion of the brand and his biggest investment Wells Fargo performing well. Buffett is known for playing the long game and he also enjoys a weak market; when stocks are low he’s sure to be buying. Read the full story.
 
Yahoo shares boost after profits report
Internet giant Yahoo’s early investment in China’s Alibaba has seen the company’s profits soar. Yahoo shares were up 3.5 per cent in after-hours trading after it announced profits were up, boosted by selling part of its stake in Alibaba; earning $6.3 billion. Behind the headline though, growth of Yahoo’s online advertising business was modest at 1 per cent; that’s higher than expectations but analysts are keen to see what the company can deliver outside of the Alibaba effect. Read the full story.
 
Ford drops Pimco Total Return Fund
Ford has announced that it is dropping the Pimco Total Return Fund from its 401k plan following the recent sudden departure of Bill Gross. The motor giant will transfer balances to the Bond Index Fund from BlackRock and will deposit future contributions with that fund. Ford is the latest investor to pull its money out of the fund. Read the full story.