Daily Market Update

Daily Market Update

Daily Market Update Global shares fall as Japan slips into recession
There has been some optimism about Japan in the last week with a general election announced and a tax hike postponed. However that has been replaced by the news that the country has slipped into recession; fuelling fears about the global economy. All of Asia’s major markets ended the day lower with Tokyo’s Nikkei falling almost 3 per cent. The data from Japan has also pushed Europe’s markets lower and cut around $1 off the price of oil. Analysts believe that the market reaction is due to the shock; it was believed that Japan’s central bank was in control of the situation; but there is expectation that the negativity will be short-lived. US stock futures and oil are lower while gold is edging up so far this morning.
 
Today’s data
Empire State Manufacturing Survey at 8.30am ET
Industrial Production data at 9.15am ET
Geomet and Urban Outfitter are among those reporting today.
 
OECD warns that global growth needs to increase
A senior official from the Organization for Economic Co-operation and Development has warned that the level of global growth needs to increase. Chief OECD economist Catherine Mann says that the global economy should be growing at 4 per cent. G20 leaders have agreed measures at the conference in Brisbane that should boost the world’s growth but Mann says that they will need to be held accountable for these measures. She says the OECD will be challenging countries who do not appear to be sticking to agreed plans.
 
Pfizer bid for AstraZeneca looking unlikely after new deal
The chance that Pfizer may make a fresh bid for UK pharma company AstraZeneca is looking less likely this morning after the US firm announced this morning that is has signed a major deal with German firm Merck to sharing rights to an experimental cancer treatment drug. The deal means that Pfizer will have less need for Astra’s products. Another deal could be brewing in the pharmaceutical sector; botox maker Allergan are reported to be about to agree a deal with Actavis PLC.
 
Apple agrees important Chinese payment deal
Apple has announced a tie-up with Chinese payment operator UnionPay in what will be a major boost to purchases from the firm’s AppStore. UnionPay has issued 4.5 billion payment cards in China and elsewhere and will make purchasing from Apple’s media stores a far easier option.