Daily Market Update

Daily Market Update

Daily Market Update Asian, Europe markets mixed; Oil price above $71
Mixed sentiment in Asia and Europe has been reflected by the markets today. In Asia there was some better data from China revealing growth in the services sector but concerns about the economy there continue to weigh heavily; Shanghai has closed slightly higher though along with Tokyo. However Australia’s growth was around half the expected figure between July and September, largely due to a downturn in mining. In Europe, stocks are largely higher with some mergers activity and expectation of stimulus hints from the ECB tomorrow. Oil has seen some recovery with the price of Brent crude moving above $71 a barrel on news of lower US supply. US stock futures are edging lower while oil and gold are slightly up.
 
Today’s data
MBA Purchase Applications at 7am ET
ADP Employment Report at 8.15am ET
Productivity and Costs at 8.30am ET
ISM Non-Manufacturing Index at 10am ET
EIA Petroleum Status Report at 10.30am ET
The Fed’s Beige Book at 2pm ET
Abercrombie & Fitch, Guess?, and Synopsys are among those reporting today.
 
Airbag manufacturer ignores US regulator
Airbag manufacturer Takata has ignored The National Highway Traffic Safety Administration’s deadline of midnight last night to extend the recall of cars fitted with potentially lethal airbags. The regulator told Takata that it needed to implement a nationwide recall rather than just focusing on warmer states where faults were in the products were more likely to occur. The company has taken no action and could not face a fine of up to $35 million.
 
Bird flu strikes near Canada/US border
Two farms in British Columbia have been affected by an outbreak of Avian Flu, known as bird flu. The disease has already caused issues in Europe and this latest outbreak has meant the death of thousands of chickens and turkeys at the Canadian farms and experts are now investigating the risks to other farms. The outbreaks seen elsewhere have not been the strain that can be transmitted to humans and there is no suggestion that the Canadian incidents pose a risk to people.
 
Top CEOs less optimistic on economy
Despite some encouraging data in recent months a survey of top firm’s CEO’s shows a lack of positivity in the economy. The economic outlook index by the Business Roundtable fell from 86.4 to 85.1 in the third quarter. It’s the second consecutive drop in the index, which is based on plans for capital spending, sales and hiring. Although things have picked up, the poor start to the year means that those polled say we have only seen a return to where we were and that the economy is still underperforming. Expectations for next year are for growth at a similar rate to 2014. Hiring is expected to increase over the next 12 months though with 40 per cent of respondents planning to create new jobs.
 
Earning potential is in your hands
Are you right-handed or a leftie? Your answer could be affecting your earning potential according to a new study. It’s believed to be the first study of its kind and Harvard professor and economist Joshua Goodman says: "Lefties have consistently lower labor market earnings than right-handed individuals."