Daily Market Update

Daily Market Update

Daily Market Update Big day for data; Oil lower
Tuesday is set to be an interesting one for the stock markets following Monday’s light day of trading around the world with US markets closed for Memorial Day and holidays also closing London, Hong Kong, Frankfurt, Paris and Seoul. As well as being the first day of the shorter week’s trading there is a stream of US economic data due. This follows Janet Yellen’s speech Friday where the Fed chair said an interest rate rise could happen this year if the economic landscape allows it. Asian markets have closed mostly higher with fresh multi-year highs for shanghai and Tokyo for the second day in row. New stimulus from China including allowing funds domiciled in Hong Kong to be sold in the mainland and vice versa have boosted sentiment. Europe is largely in negative territory Tuesday as a default on loan repayments by Greece looks increasingly likely. The concern is outweighing positive results from regional corporates.

US stock futures are trending lower. Oil is trending lower (Brent $65.10, WTI 59.35 at 6am ET) Gold is trending lower.
 
Today’s data
Durable goods at 8.30am ET
FHFA house price index at 9am ET
S&P Case-Shiller HPI at 9am ET
PMI services flash at 9.45am ET
New home sales at 10am ET
Consumer confidence at 10am ET
Richmond Fed manufacturing index at 10am ET
State Street investor confidence at 10am ET
Dallas Fed manufacturing survey at 10.30am ET
Box Ships, Fairway Group and Tivo are among the companies reporting results today.
 
Charter set to buy Time-Warner for $55 billion
A deal is expected to be confirmed Tuesday between Charter Communications and Time-Warner. It’s reported that the deal is for $55 billion, $10 billion more than the failed Comcast deal which locked Charter out earlier. The Comcast deal was hit by antitrust regulators and it may be that the Charter deal would have conditions attached for it to be approved according to analysts.
 
Libor trial begins in London
The first trader to be tried for an alleged role in the Libor rate rigging scandal will be in court Tuesday. Tom Hayes, formerly of UBS and Citigroup will face a jury in London charged by the UK’s Serious Fraud Office with 8 counts of conspiracy to defraud; a guilty verdict could put him in jail for up to 10 years.
 
$15 minimum wage gains momentum
A movement pushing for a $15 an hour ‘living wage’ for all workers is gathering pace according to campaigners. The Fight for $15 organization, backed by the Services Employees International Union, says that those who believed the figure was an impossible dream are increasingly confident that it could become a reality. California is leading the way in raising the minimum wage with LA voting last week to do so by 2020 and other cities moving towards increased hourly rates. The Fight for $15 movement is not necessarily about minimum wage legislation though; spokesman Kendall Fells told CNN that it’s about getting billionaire fast-food moguls to share their wealth with their workers.