Daily Market Update

Daily Market Update

Daily Market Update
Dollar surges to 7 year high against the yen
China’s economy looked weak again today as new data showed a slight improvement in the country’s Purchasing Managers Index for October but not enough to give investors any real confidence. The figures have further highlighted the stronger position of the US economy compared to much of the rest of the world and that’s pushed interest in the dollar to a 7 year high against the yen and a 2 year peak against the euro. Commodities priced in dollars have suffered with gold and oil both lower. Asian markets have ended the day mixed; Tokyo was closed for a public holiday. In Europe a magazine report quoting German chancellor Angela Merkel as saying that she believes the UK is nearing a “point of no return” in its relationship with Europe has sent shivers through the markets together with the weaker than hoped Chinese PMI and figures suggesting contraction in the Italian economy. Most major markets are trending lower after early gains. US stock futures are lower.
 
Today’s data
Motor Vehicle Sales at 8.30am ET
Gallup Consumer Spending Measure at 8.30am ET
PMI Manufacturing Index at 9.45am ET
ISM Manufacturing Index at 10am ET
Construction Spending at 10am ET
Herbalife and Sprint Networks are among those reporting today.
 
One World Trade Center opens for business
It’s a big day for business; for New York; for America. The 104 storey One World Trade Center will come into operation as Conde Naste begin moving in to America’s tallest building. The publishing firm will have more than 3,000 employees in the tower by early next year with other space being taking by Kids Creative, the government’s General Services Administration and many others to come. The new building dominates the New York skyline and overlooks the September 11 memorial built in the footprints of the twin towers.
 
Boston’s Sapient to join Publicis in $3.7 billion deal
French-based global advertising giant Publicis is to buy Boston based marketing firm Sapient in a cash deal worth $25 per share; totalling $3.7 billion. The announcement this morning says that the boards of both firms have agreed the deal which is likely to complete early in 2015.
 
Sub-$3 gallon offers some festive cheer
The low price of oil has led to a widespread availability of gasoline at below $3 a gallon at most gas stations and experts are predicting that the low price will be here for a while. In fact the AAA are suggesting that there may be a further dip of up to 15 cents on the way and that relatively low prices could remain for the rest of the year.
 
UN report says we have 86 years to save the world
A new report from the United Nations released at the weekend says we have to reduce carbon emissions to zero by 2100 to limit the risks of irreversible damage to the planet. UN secretary general Ban ki-Moon said that “there is no ambiguity” in what science is telling us; the report is a consensus of 800 scientists from around the world. The report says that with fast action we can avoid the worst risks at a manageable cost. Without action we could be facing disaster on an unprecedented scale with flooding, food shortages and loss of life.