Daily Market Update

Daily Market Update

Daily Market Update US stock futures higher after sharp fall Friday
Wall Street suffered losses Friday as the Dow plunged 1.3 per cent for the week; at one point in the last session it was 350 points off. Futures are looking better though as another week of earnings season begins. Asian markets have closed lower Monday despite the anticipated increase in stimulus from Beijing. China’s central bank has lowered the reserve requirement ratio by 100 basis points. Analysts say that the stimulus was not enough of a big deal to negate concerns in Asia over conditions elsewhere; many investors were shaken by the large drop in the Dow Friday and similar losses in Europe. China’s move was enough to boost European markets however, with all major indexes in positive territory so far Monday. Greece is still a major issue though with the ECB president saying over the weekend that the country needs to try to save itself and Greece’s finance minister warning that if his country leaves the Eurozone it will have a negative effect on other economies in the bloc.
US stock futures are trending higher. Oil is trending higher (Brent $63.79, WTI $56.11 at 5.50am ET). Gold is trending higher.
 
Today’s data
Chicago Fed national activity index at 8.30am ET
Halliburton, IBM and Morgan Stanley are among the companies reporting earnings today.
 
Oil price knocked by Saudi Arabia; recovers on US data
Oil prices have already been up and down so far Monday as Saudi Arabia’s oil minister said that the country’s output would remain at near-record levels in April. However a report from Baker Hughes showing lower levels of US oil rigs and China’s stimulus announcement are mitigating some of the market’s concern.
 
Morgan Stanley could be about to settle investigation for $500m
The investigation into mortgage bonds which lost value during the financial crisis could see Morgan Stanley paying $500 million in settlement. The Wall Street Journal reports that a source close to the matter has revealed that the bank is in discussion over a deal that could mean cash payments and consumer relief. The bank is reporting its earnings today.
 
Poll shows that most businesses are optimistic about the economy
Despite the pace of growth slipping at many big companies, the quarterly report from the National Association for Business Economics shows that optimism abounds for the coming months. Most of the survey’s respondents felt that sales would rise in the next three months and a third of companies expect to expand their workforce. Fewer respondents planned lay-offs.