Daily Market Update

Daily Market Update

Daily Market Update Greece and oil dominate again
Concern over Greece’s debt and the price of oil are once again top of the list of concerns among investors Wednesday. European finance ministers are meeting in Brussels today to discuss the options for Greece’s bailout which ends in two weeks. Hope of an amicable settlement to the issue pushed stocks in Europe higher yesterday until the German finance minister poured water on a new deal. However a new deal will be needed to avoid disaster for Greece’s economy and the wider Eurozone. Markets in Europe are trading lower ahead of any announcement. In Asia Greece is also reducing risk appetite along with oil prices but there was also regional woes with some key Australian earnings falling short. The Chinese governments continued messages of support for the economy helped Shanghai to close with gains. Asian markets have closed mixed. US stock futures are trending lower; oil is lower; gold is higher.
 
Today’s data
MBA Purchase Applications at 7.00am ET
EIA Petroleum Status Report at 10.30am ET
Treasury Budget at 2.00pm ET
AOL, Morningstar, Pepsico and Tesla are among those reporting earnings today.
 
Apple becomes first US company worth $700 billion
Another milestone was reached yesterday as Apple became the first US company ever to reach a market value of $700 billion. It had reached the mark before but this was the first time it had closed at that level. To put it in to context the company with the second highest valuation is Exxon on $382 billion. Apple’s stock surged yesterday as it announced its involvement in a 3,000 acre solar energy farm in California that will power its headquarters and thousands of other properties.
 
Fed could delay rate rises with new thinking
A survey by Reuters of current and former Fed staff and policymakers suggests that a change in thinking at the central bank could mean a delay in interest rate hikes. The thinking surrounds a concept of the economy producing lower levels of unemployment without inflation surges. Although it’s unlikely to make a difference to the first rate rise, still expected this summer, it could mean a slower pace of subsequent rises. Read the full story.
 
Oil could fall to $30 says expert
With Brent crude bouncing around the $56 mark in early trading this morning and many believing that we may have seen the bottom of the price fluctuations already others are predicting more pain. Tom Kloza of the Oil Price Information Service says that he believes that WTI could fall as low as $30 in the second quarter of 2015. He says that storage facilities for shale oil will fill up with demand still weak and that the gap between WTI and Brent will widen. Read the full story.