Daily Market Update

Daily Market Update

Daily Market Update Markets slide again as oil prices push investors to safe havens
Government bonds and gold are the investments of choice for many investors currently as oil prices continue to spook the equities markets. Lack of demand for the glut of oil supplies suggests weakness in the global economy and even in the US, where growth is generally positive; equities have suffered in the last few days. Asian markets have closed mainly lower with Shanghai narrowly bucking the trend. Europe’s markets are also lower with concern over Greece’s future in the Eurozone and its economy post-election adding to woes. US stock futures are trending lower; oil is lower; gold is higher.
 
Today’s data
PMI Services Index at 9.45am ET
Factory Orders at 10.00am ET
ISM Non-Manufacturing Index at 10.00am ET
Commercial Metal and Sonic Corp are among those reporting earnings.
 
Oil still falling as some bet on $20 barrel
Oil prices continue to fall on expectation that US inventories of crude will grow and some investors are now betting prices as low as $20 a barrel. The US and OPEC are in stalemate over production with neither prepared to cut output but analysts are speculating on how low the price needs to get before that changes.
 
JP Morgan Chase should be broken up says Goldman Sachs
Goldman Sachs Group says that JP Morgan Chase would probably be worth more to investors if it was broken up in parts. In a research note analyst Richard Ramsden wrote yesterday that if the bank was split into its four main business areas then it would be worth between 5 and 25 per cent more to investors than it is in its current structure.
 
Toyota announces plan to share fuel cell patents
Toyota announced at the Consumer Electronics Show yesterday that it is planning to share some of its fuel cell patents with competitors. The move is designed to boost production of hydrogen cell powered vehicles and will see almost 6,000 patents made available.
 
Small business borrowing declined in November
Small business borrowing fell in November according to new data from the Thomson Reuters/PayNet Small Business Lending Index. The index fell to its lowest level for 8 months although it was 1 per cent higher than a year previously.