Daily Market Update

Daily Market Update

Daily Market Update
World stocks higher after surprise Japanese stimulus
Asian markets have traded higher today after a surprise move by Japan; it’s increasing its stimulus measures with the Bank of Japan asset-buying to “pre-empt manifestation of risks”. Japanese stocks soared 4.8 per cent to their highest close since 2007. The positive sentiment has spread across the region and also to Europe where all the major markets are gaining so far. US stock futures are all edging higher while gold and oil are both lower.
 
Today’s data
Personal Income and Outlays at 8.30am ET
Employment Cost Index at 8.30am ET
Chicago PMI at 9.45am ET
Consumer Sentiment at 9.55am ET
Abbvie, Berkshire Hathaway and Exxon all report earnings today.
 
US economy has strongest quarter for a decade
Recent data shows that the US economy has enjoyed its strongest six months of growth for ten years. There have been two consecutive quarters of strong upticks in GDP, jobless claims figures show a 4 week decline and consumer spending is increasing. Read the full story.
 
Oil prices could surge if Iran nuclear talks fail
A failure of talks between Iran and the rest of the world on the nation’s nuclear ambitions could lead to a spike in the price of oil. Brent crude is currently at a low of just under $86 a barrel but was around $128 during unrest in Israel earlier in the year. The potential surge in prices has been highlighted in a note by Nomura’s senior political analyst Alastair Newton. He says that if there was a breakdown in talks and oil prices spike, it is likely to be short-lived. Read the full story.
 
Is gold heading for $1000 an ounce?
Gold is at its lowest levels since 2010 as the dollar surged following upgraded stimulus measures from the Bank of Japan. Gold has also been hit by the improving US economy and the hawkish tones of the Fed’s monetary policy meeting this week was already pushing it lower. Analysts say that it would not be impossible for it to reach $1000 an ounce. Read the full story.
 
Retailers’ price war increases
Wal-Mart has announced that it is expanding discounted product ranges through the holiday season. With flat or declining sales recently and a tougher than expected holiday trading period last year the firm is expecting tough competition in the next couple of months. Wal-Mart’s “roll-backs” will start tomorrow, throwing down the gauntlet to other retailers in what is set to be a fierce price war. Tactics will also play an important part; Macys and now Kohl’s have announced 6pm opening on Thanksgiving Day. Read the full story.
 
Starbucks’ investors want more growth; the coffee giant has plans
Investors were disappointed by the 10 per cent revenue growth announced yesterday by Starbucks; Wall Street was expecting more. However it was an upbeat message from the coffee giant as they forecast revenue to grow around 16 to 18 per cent next year. One of the company’s plans is to launch a delivery service, utilising its app to allow loyalty program members to order and pay for their beverage which will then be delivered. It is planned to trial the service late next year in Portland, Ore. followed by a national roll out.