Daily Market Update

Daily Market Update

Daily Market Update Triple-digit losses for the Dow; World stocks mixed Wednesday
Wall Street closed with losses Tuesday as the markets weighed the effects of the dollar; the Dow was down 104.9 points. Wednesday’s trading has seen mixed sentiment around the world with Asia lower due to the weaker US lead and ongoing concern over China’s stumbling economy. Shanghai’s index was hit by lower banking stocks and closed with losses. Hong Kong gained as Hutchison Whampoa agreed to buy UK telecom firm O2 and the other major indexes closed higher. In Europe markets are mixed although data from Germany showed increased business confidence for the 5th month in a row.  

US stock futures are trending higher. Oil is mixed (Brent up to $55.30, WTI down to $47.40 at 5.20am ET). Gold is flat.
 
Today’s data
MBA Mortgage Applications at 7.00am ET
Durable Goods Orders at 8.30am ET
EIA Petroleum Status Report at 10.30am ET
Asure Software, Lightbridge Corp and Paychex are among the companies reporting earnings today.
 
US tech firms facing new EU privacy battle
Firms such as Facebook and Google are facing new challenges to their business in Europe after a law student contested the practice of storing EU customers’ data in the US. If the European Court of Justice decides to rule in favor of Max Schrems, who claims that the data is not stored according to tougher EU standards, it would mean around 4,000 American firms having to create new data storage facilities in the EU. Schrems initially complained to the Irish authorities but they rejected his claim triggering a court battle.
 
Kraft may be acquired by Brazilian private equity firm
Kraft Foods Group is to be acquired by Brazilian private equity firm 3G Capital according to reports. The firm is believed to be valued at $40 billion and as 3G acquired Heinz two years ago the expectation is for the two food firms to be merged.
 
Top CEOs have made more than previously thought
Chief executives at large US companies have received more compensation than previously thought according to Reuters. Its analysis shows that in the five years since the financial crisis first hit, 300 CEOs who were serving during the period benefitted from soaring stock options to realize compensation of around $73 million each, or a collective $22 billion. That’s around $6 billion higher than estimated in disclosures.