Daily Market Update

Daily Market Update

Daily Market Update Markets await Yellen
Markets worldwide are awaiting Janet Yellen’s keynote speech at Jackson Hole today, and as a result things are largely in a holding pattern. In Europe markets have seen their biggest gains since February this week but there has been some decline in early trading. Asian stocks have ended the week close to the highest since before the downturn. US stock futures and the dollar are steady.

Today’s data
Janet Yellen’s keynote speech at the Jackson Hole Economic Policy Symposium is at 10am ET.
Other speakers at the symposium include President of the European Central Bank Mario Draghi; his speech comes after European markets close.
Foot Locker and Royal Bank of Canada release earnings reports before the opening bell.

Jackson Hole speech is highly anticipated
When Janet Yellen begins her speech at Jackson Hole this morning, the world will be listening. The expectation is that she will hit a dovish note and will say that despite some good indicators for the labor market, there is still more to be done. She has highlighted the demand for full-time hours and wage increases in past speeches. Yellen is not expected to deviate from previous statements that interest rate rises are still some way off. The curveball of course is those minutes of the Fed’s policy committee which showed the level of debate about whether to go earlier with rate rises. There’s just a chance that Yellen will have a more hawkish tone today.

Apple gets bitten by supply chain glitch
After last week’s excitement surrounding news of the latest iPhone release this side of Christmas; news that boosted Apple’s already high share price; there is a problem. A key component of the iPhone 6’s new larger screen has required redevelopment and there are now concerns that a shortage of screens may cause delays in getting the phones to market. Suppliers say they are now back in production after a few weeks of delays and are working flat out to have the phones ready for next month’s launch. Of course failing to supply would be a big problem for Apple, whereas scares like this often help to boost demand from early adopters! Read the full story.

Clothing retailer finds gap in the market
The Indian economy is growing, western fashion and culture is in demand and the market place is huge, so it makes perfect sense for Gap to make a push into the Indian market. It’s announced a partnership with textiles firm Arvind Lifestyle Brand and will open 40 franchised outlets in India next year. Steve Sunnucks Gap’s global president says the market is a major step in the San Francisco based firm’s international expansion plans. Gap is looking to reduce its dependence on the North American market and will add more stores to its Asian footprint in the coming year. Read the full story.