Daily Market Update

Daily Market Update

Daily Market Update World markets back at work, Fed rate hike deemed unlikely
All major stock markets were back at work Tuesday following Easter and other local holidays. It was the first real chance for the world’s investors to react to Friday’s US jobs data with a widespread feeling that it would surely delay any talk of a rise in interest rates. Asia’s markets were led by Monday’s gains on Wall Street and the decision of two central banks to keep interest rates on hold; Australia and India. The Bank of Japan began its two-day policy meeting and China’s main index in Shanghai soared to new 7-year highs. Hong Kong is still closed for the Ching Ming festival. In Europe, where markets were closed Friday and Monday, it is a positive start to the short week with US interest rates and acquisitions in the delivery sector boosting sentiment.

US stock futures are trending higher. Oil is trending lower (Brent $57.52, WTI $51.59 at 4.00am ET). Gold is trending lower.
 
Today’s data
JOLTS at 10.00am ET
Consumer credit at 3.00pm ET
Oil inventories at 4.30pm ET
Empire Global, Pollex and Team Inc. are among the companies reporting today.
 
Goldman Sachs: oil prices need to stay low for US to cut output
A report by Goldman Sachs has seen the price of oil slip back from overnight gains. It says that oil prices need to stay low for a few months to “achieve a sufficient and sustainable slowdown in US production growth.” On current production predictions for 2016 the bank believes that $65 a barrel will not be achieved.
 
FedEx offers to buy Europe’s TNT
FedEx has offered European firm TNT Express in a $4.8 billion all-cash public offer which will rapidly increase its global operations. CNBC reports that the firms have issued a joint-release stating that the deal values TNT at 33 per cent above its current market value and that the offer is expected to close in 2016. TNT was the subject of a takeover bid by UPS two years ago but that was blocked by Europe’s antitrust regulators. FedEx and TNT say they believe they can resolve similar issues if they arise. Read the full story.
 
Starbucks backs learning with free bachelor’s degree program
Employees of Starbucks who want to further their education will soon be able to study for a bachelor’s degree for free. The coffee firm has announced that it will offer its employees full tuition at Arizona State University’s online program. It expands on the firm’s current program which offers employees two-years of undergraduate study and will apply to all full and part-time employees who do not already have a bachelor’s degree, 70 per cent of its workforce. There will be no obligation to stay with the firm after graduating.