Daily Market Update

Daily Market Update

Daily Market Update World stocks rise as appetite for risk returns
Global stock markets are generally up today as investors return to riskier choices with the Russia-Ukraine crisis causing less concern. US housing data released Monday also gave a boost to stocks and data due this week is forecast to show further encouraging signs for the US economy with the Fed Reserve’s summit in Wyoming also expected to bring largely positive news. European and Asian markets have been on the rise today along with US futures.

Today’s data
US monthly inflation figures due at 8.30am ET
Census Bureau housing starts and building permits data at 8.30am ET
Dick’s Sporting Goods and Home depot among those reporting before the bell this morning.

Lawmakers want revised Fed plan for banks
A bipartisan group of lawmakers has called for the Federal Reserve to do more to restrict its emergency lending powers. The Fed evoked powers to allow it to lend to banks to prevent the global financial crisis getting worse. The loans were criticized as bailouts and Congress moved to curtail the Fed’s powers in 2010 but there are now calls for more to be done by the bank’s managing committee. In a letter to chair Janet Yellen, the lawmakers from across the political spectrum have expressed concern that bailouts to large financial institutions could be given by the Fed without congressional action. Read the full story.

Evoq Properties to be sold in $357m deal
Los Angeles based commercial property landlord Evoq is to be sold for $357.4 million. The deal will see investors pocket $12.96 per share when the company is acquired by a group of investors including New York’s Atlas Capital Group. The company has been through some challenges since its listing on the stock market in 2009 but has significant assets in the commercial sector and also land which is earmarked for residential development. Read the full story.

Family Dollar in bidding war
With thrifty Americans increasingly choosing budget stores, there’s big money in retailers like Family Dollar. That’s why Dollar Tree want it and were set to do a deal for $8.5 billion, and why Dollar General stepped in yesterday with a rival bid.  With other retailers such as Walmart encroaching on the dollar stores’ turf, they are keen to be bigger, increasing market share and their buying power. Dollar General has offered $8.9 billion and would also pay a break-up fee to Dollar Tree of $305 million. If the Dollar General deal goes ahead it will create a retail giant with 20,000 stores and revenue of $28 billion. Read the full story.