Daily Market Update

Daily Market Update

Daily Market Update Asian markets dip over slow global growth; Europe awaits ECB
The major Asian stock markets have ended in the red today as concern about the slow pace of global growth outweighed any positives from the US. Even Japan, which has rallied since the country’s central bank increased stimulus measures, ended lower. In Europe it’s all about the ECB monetary policy meeting today. Investors are calling for more stimulus measures but there is opposition to quantative easing within the ECB and the markets are nervous that any new measures will fall short of expectations. US stock futures are edging lower while gold and oil are also down so far this morning.
 
Today’s data
Jobless claims weekly report at 8.30am ET
Productivity and costs data at 8.30am ET
Freddie Mac, Sapient Corp. and Walt Disney Corp. all report results today.
 
No repeal of Obamacare despite election results
President Obama says he is keen to work with the new Congress dynamic but has conceded that there will be disagreements. Asked if he would sign a repeal of the Affordable Care Act he said he would not as “it is working” and noted that even many Republicans agree. The President says he wants Congress to work on immigration control and on employment and wages. Read the full story.
 
Leaked report reveals secret tax deals of US companies
US firms are among those revealed to have entered into secret deals with EU nation Luxembourg. The International Consortium of Investigative Journalists has released leaked documents which show companies have negotiated favorable tax deals with the small European nation. There is already an investigation by EU officials into Amazon’s relationship with Luxembourg; this new revelation suggests deals are in place for PepsiCo, Deutsche Bank, AIG and around 300 more. Luxembourg denies any ‘sweetheart deals’ and say the country’s tax system is competitive but not unfair. Read the full story.
 
Tesla’s growth loses power
Electric car maker Tesla has cut back its forecast for deliveries this year after posting increased third-quarter losses. This time last year Tesla reported losses of $38.5 million; yesterday it reported $74.6 million. Revenue is almost double in a year though to $852 million but the company says production rather than sales is its biggest issue with a factory overhaul having been delayed. CEO Elon Musk reassured shareholders that the company’s aim is 100,000 vehicles by the end of next year and Tesla’s share price was up 7 per cent in after-hours trading. Read the full story.