Pressure on the dollar hits Wall St.; World markets mixed
Yesterday saw a drop of 300 points for the Dow, wiping out the year’s gains for far. The greenback surged while oil declined and analysts say that there is likely to be some volatility for equities due to economic conditions globally and mixed data at home. After Wall Street’s losses Asia has largely struggled to find traction Wednesday especially after some more soft data from China; although Shanghai closed higher. Japan’s Nikkei also bucked the trend, closing higher as machinery orders figures exceeded expectations. European indexes are higher so far after sharp losses yesterday and a speech from the ECB president this morning has given reassurance that the bank expects its bond-buying program to return the region’s inflation to within targets. Later, Greece meets with its creditors.
US stock futures are trending higher. Oil is trending higher on lower stocks (Brent $56.33, WTI $48.49 at 5.40am ET). Gold is higher.
MBA Purchase Applications at 7.00am ET
Quarterly Services Survey at 10.00am ET
EIA Petroleum Status 10.30am ET
Treasury Budget at 2.00pm ET
Krispy Kreme, Rosetta Stone and US Energy Corp. are among those reporting earnings today.
Banks seek Fed backing for buy-backs, increased dividends
Big US banks including JP Morgan Chase and Citigroup are today expected to seek Federal Reserve backing to buy back shares and increase dividends. The banks will issue preferred shares to raise capital to pay dividends on ordinary shares but some analysts question whether it is prudent. David Hendler of independent research firm Viola Risk Advisors told Reuters: "Banks should be building capital from normal lending and trading profits, but their operating income is terrible.” Read the full story.
You need $2.5 million to retire says Legg Mason survey
Investors say they will need $2.5 million saved for their retirement if they are to continue the quality of life they have today. That’s according to a survey by global investment managers Legg Mason. The average respondent though has $385,000 in their 401k so only 40 per cent of those polled said that felt confident that they can retire when they planned to.
Google opens its first store
Google is to open its first store, in London’s techie center Tottenham Court Road. The Google Shop will be based inside electronics firm Currys PC World just a short way from the flagship Apple Store. The firm promises all its tech products, such as Android phones and tablets, Chromecast and wearables and much more. Its press release says: “With the Google shop, we want to offer people a place where they can play, experiment and learn about all of what Google has to offer.”
More market talk: