Daily Market Update

Daily Market Update

Daily Market Update Dollar hits 7 year high on mid-term results
Yesterday’s widespread wins for the Republicans has pushed the dollar to a seven year high against the yen. Equities have gained too as markets reacted positively to a change that will curb President Obama’s power for the remainder of his term. Asia’s major markets have ended the day mixed with Japan staying positive while China was lower after more disappointing PMI data. Europe is seeing gains so far with some positive earnings results and optimism of enhanced stimulus from the ECB. US stock futures are firmly in positive territory while oil continues to edge lower along with gold.
 
Today’s data
MBA Purchase Applications at 7am ET
ADP Employment Report at 8.15am ET
Gallup US Job Creation Index at 8.30am ET
PMI Services Index at 9.45am ET
ISM Non-Manufacturing Index at 10am ET
CBS, Tesla Motors and Time Warner are among those reporting today.
 
How could Republican wins change the markets?
Speculation is rife following the Republicans wins yesterday with analysts weighing up which sectors could benefit from the shift of power. The energy sector could fare well with pipeline approvals, law reforms and new trade agreements a possibility; Casinos might benefit from a slowdown of online gaming; and healthcare technology firms may get a repeal of the medical device tax that’s part of the Affordable Care Act. Read the full story.
 
Alibaba revenues surge in first report since going public
Investors in Alibaba focused on the company’s huge growth in numbers of users yesterday as the Chinese e-commerce giant reported its first numbers as a public company. Alibaba now has 307 million active users; a climb of 52 per cent; and also makes more from every mobile transaction it processes. Margins on earnings were lower than expected but revenue growth of 53.7 per cent dwarfs that of its peers including Amazon’s 20 per cent. Gross value of merchandise sold was up 49 per cent. Alibaba’s shares gained 3 per cent after the report.
 
IMF gave wrong advice to richer nations
An internal audit at the International Monetary Fund has found that it advised rich nations to implement austerity measures too early; ignoring its own research. The auditor says that the IMF pushed for tighter fiscal controls and budget cuts alongside looser monetary policies and should have known that this would not be the right solution following the crisis. Read the full story.