Daily Market Update

Daily Market Update

Daily Market Update Futures trending higher after Friday’s low
The triple-digit losses on Wall Street Friday due to the strength of the dollar meant a pessimistic end to last week. World markets have started the new week mixed with Shanghai closing higher as expectation of stimulus increases; elsewhere in Asia markets are cautious ahead of the Fed’s meeting this week. The Bank of Japan is also meeting and will be expected to continue the country’s quantative easing program. In Europe all major indexes are trending higher; the weaker Euro has helped equities climb but again much of this week’s trading will be tinged with caution on whether the Fed will continue to be ‘patient’ on interest rates.

US stock futures are trending higher. Oil is trending lower (Brent $54.27, WTI $44.49 at 5.55am ET). Gold is higher.
 
Today’s data
Empire State Manufacturing Survey at 8.30am ET
Industrial Production at 9.15am ET
Housing Market Index at 10.00am ET
Treasury International Capital at 4.00pm ET
Burger King Worldwide, FX Energy and Turtle Beach are among those reporting results today.
 
Investment group to buy GE’s Australian, NZ consumer lending business
An investment group including KKR & Co, Varde Partners and Deutsche Bank among others, is acquiring the Australian and New Zealand consumer lending business of GE for $8.2 billion, including around $5.33 billion of debt which they plan to securitize. It will be Australia’s largest inbound takeover of a finance company. GE is seeking to reduce its exposure to consumer lending, which hurt it badly during the financial crisis.
 
BP CEO warns of painful times ahead
The chief executive of oil giant BP says that the lower prices are going to get “very painful” for the oil and gas industry. Bob Dudley told CNBC that the industry has been living in the “luxury” of $100 a barrel and the sudden and sharp drop in prices since last June has consequences. BP has undertaken restructuring and job losses in recent months and Dudley says that the industry is “back into the normal world of volatility” for prices.
 
Are cars becoming a thing of the past?
With millions of vehicles being sold every year it’s hard to imagine a world without them but an investor in Uber claims that millennials are not interested in cars, they want convenience. Venture capitalist Bill Gurley says that the millennial generation see cars purely as a utility rather than a status symbol and that is helping the rise share firm grow. He says that driverless cars, one of Google’s big plans, won’t be embraced by consumers and would be restricted to dedicated lanes initially.