Daily Market Update

Daily Market Update

Daily Market Update European markets stronger, Asia mixed, UK down and US futures lower
The week has started well for European markets following Friday’s gains on Wall Street. UK shares are trading lower though as a poll over the weekend suggested that hunger for Scottish Independence could see a break-up of the UK after the September 18th referendum. Asian shares have seen a mixed Monday with concern about the lower-than-hoped US jobs data and the UK union. Weak data from Japan and China seems to be of secondary caution; Japan’s economy contracted in Q2 while China’s trade surplus hit a new high as imports weakened. US futures are trending lower so far today.

Today’s data
The Federal Reserve is due to release data on consumer spending for July this afternoon.
Campbell Soup reports earnings before the opening bell this morning.

GE set for $3.3 billion from appliances deal
The home appliances division of General Electric will become part of Sweden’s Electrolux in a $3.3 billion deal announced this morning. Electrolux is the second-largest supplier of home appliances in the world and is known for brands such as Frigidaire, AEG and Zanussi. It is particularly strong in Europe and views this deal as a key to increasing its sales in North America and in taking on Whirlpool’s number-one position globally. The deal will more than double Electrolux’s sales here. Read the full story.

Anticipation for Apple launch day
Tomorrow is a big day, not least for those who have been snapping up Apple shares in recent months in anticipation of new product launches. The company will unveil its latest innovations at an event which will quickly hit headlines around the world, but what are those products likely to be? Although Apple is staying quiet, industry experts are predicting not one, but two new iPhones. The expectation is for larger screen models, seen as important in a world of more mobile gaming and consumption of TV and video. Wearable tech is expected to feature, with an iWatch being the likely candidate and there is also hoped to be a new way to make payments using your smartphone, which will utilise the millions of credit card users already registered with Apple for its iTunes and AppStore payments. Read the full story.

China’s trade surplus continues
For the second month in a row China has seen an increase in its trade surplus as demand in the US and elsewhere has driven high exports, while domestic weakness has stalled imports. The record surplus was $48.9 billion. Exports were down on July’s figure but imports fell more than the previous month. Experts are not predicting a slow down on exports especially in light of the Apple launches. Read the full story.