Daily Market Update

Daily Market Update

Daily Market Update Stock futures higher after triple-digit drop
Tuesday’s triple-digit drop by the Dow on mixed economic data, Greek debt and higher bond yields but the markets should open higher for Wednesday’s session. Asia’s markets have generally had a poor day’s trading with the lower lead from Wall Street exacerbated by a sell-off in Beijing and some disappointing earnings results in Sydney. Tokyo is closed for a public holiday. European markets have started with more optimism after PMI data showed better-than-expected growth in the Eurozone and corporate earnings added to the positive sentiment. There was also news of a $200 million payment by Greece to the IMF.

US stock futures are trending higher. Oil is trending higher (Brent $68.89, WTI $61.81 at 5.50am ET). Gold is trending lower.
 
Today’s data
MBA mortgage applications at 7am ET
ADP employment report at 8.30am ET
Productivity and costs at 8.30am ET
Janet Yellen speaks at 9.45am ET
EIA petroleum status report at 10.30am ET
Anheuser-Busch InBev, Tesla and 21st Century Fox are among the companies reporting results today.
 
JP Morgan could soon settle forex investigation
The foreign exchange investigation into JP Morgan Chase could soon be settled. Reuters reports that the bank is in advanced talks with regulators to bring the matter to a close. Legal fees are estimated to be $5.5 billion.
 
California regulators approve water restrictions
Californian will be placed under unprecedented restrictions regarding water usage after state regulators approved the move to tackle the ongoing drought. Cities will be forced to cut water usage by 36 per cent compared to 2013 figures but may critics are saying that the targets are unrealistic and point out that they have already cut usage heavily. The state says that it is better to make cuts now than to have to introduce more radical plans if there is no rain in the fall. It’s unclear what penalties will be imposed for ignoring the new rules.
 
Cloud software provider shares spike on Microsoft report
A report by Bloomberg that said Microsoft are eyeing cloud software company Salesforce saw shares in the potential target rise by more than 6 per cent. Trading was briefly suspended after shares rose from $71.4 to $75.82 in around 60 seconds. The report said that Microsoft are not in talks with Salesforce and no deal is imminent.