Daily Market Update

Daily Market Update

Daily Market Update
World stocks start Q4 lower

Weak data in the manufacturing and retail sectors in Europe together with political unrest in Hong Kong are all adding to investor caution and world stocks are starting the final quarter largely down. Purchasing manager figures from Germany and France highlight the continued weakness in the Eurozone bloc with inflation still causing concerns. The ECB meets this Thursday. Hong Kong isn’t the only factor in Asia’s negative tone; disappointing factory data from China and lower sentiment in Japan’s service sector are adding to the regions woes. Home prices and confidence figures together with declines in energy and mineral shares saw the US markets close lower on Tuesday with stock futures edging lower this morning. Gold is trending down against the strength of the dollar while oil is slightly higher.
Today’s data

Domestic motor vehicle sales data due this morning.
ADP Employment report for September at 8.15am ET
PMI Manufacturing Index at 9.45am ET
Construction Spending data at 10am ET
Kid Brands and Synergetics are among the companies reporting earnings today.
Biotech shares in demand after US confirms Ebola case

The news that the US has its first confirmed case of the deadly Ebola virus has seen a boost in stocks of companies working on vaccines. Tekmira Pharmaceuticals,  Newlink Genetics and GlaxoSmithKline are among those firms whose shares are in demand. The Ebola case in Texas is unlikely to spread wider according to experts although those who may have been in close contact with the patient are being identified and will be monitored for 21 days for symptoms. Read the full story.
JP Morgan to face class action over MBA sales

A judge has ruled that JP Morgan must face a class action lawsuit from investors who say they were misled by the bank over its sale of $10 billion of mortgage backed securities. While the federal district judge certified a class action for liability he was not able to certify an action for damages but has told plaintiffs they can try again for that. Read the full story.
Murdoch to enter online real estate space

Rupert Murdoch’s News Corp has announced that it is to buy Move Inc for $950 million. The online real estate service is the third largest behind Zillow and Trulia which are merging. The acquisition is part of Murdoch’s plan to diversify his publishing assets. Move Inc.’s Realtor.com will have access to additional online traffic through sites like Wall Street Journal. News Corp. already owns the number one online real estate business in Australia and Realtor.com will benefit from its experience. Read the full story.