Daily Market Update

Daily Market Update

Daily Market Update US jobs data gives global stocks a boost

Risk-averse investors in Asia held back on Friday to await the US Labor Department’s latest non-farm payroll data but the better-than-estimated figures have given markets a boost this morning. The extra 248,000 jobs revealed in the figures have helped ease concerns over a slowdown and Asia has reacted with gains in Tokyo and Hong Kong, although Sydney has seen losses. Shanghai and Mumbai are closed for public holidays. Hong Kong’s market has also been more upbeat as pro-democracy protests there are scaled back. Europe’s markets have also started the week well with gains in all the main indexes although new data showing weakness in Germany’s factory output may see losses later. London’s FTSE100 has reversed losses of the past two weeks led by a recovery in Tesco shares after it announced new board appointments. The supermarket giant’s shares were hit by revelations of a major accounting error and poor sales. The US dollar is still holding on to its 4 year highs and stock futures are edging higher. Gold and oil are both lower.
Today’s data

The results from Gallup’s poll of self-reported consumer spending is due at 8.30am ET.
Container Store and JV Group are among those reporting results today.
HP set to split in two

Hewlett-Packard is expected to announce plans today to separate its PC and printer business from its corporate hardware and services arm. The move would create two publicly-listed corporations each with around $50 billion in annual revenue. It’s reported that the split would involve a tax-free distribution to stockholders next year and would follow other high-profile separations including the planned split of eBay and PayPal. Read the full story.
Walt Disney offers financial boost for European theme park

The Euro Disney theme park will be given a boost after agreeing a deal with its largest shareholder Walt Disney Co.  The deal involves Walt Disney launching a tender offer on Euro Disney shares. A rights issue of 420 million euros (526 million US dollars) would give the European theme park a cash boost of 250 million euros. An additional 600 million euros of debt would be converted into equity. Despite its position as the number one visitor attraction in Europe, the Euro Disney theme park has been hit by the economic crisis and has 1.75 billion euros of debt. Read the full story.
US is most popular foreign work destination

A new survey puts English-speaking nations at the top of popular places for foreign workers to want to work and the US it top of the list. The poll asked 200,000 workers in 189 countries to choose the country they would happily move to for work and 42 per cent chose the US with the UK and Canada completing the top 3. Read the full story
Healthcare companies in $12.2 billion deal

Beckton Dickinson and Company has announced that it is to acquire CareFusion for $12.2 billion in cash and stock. The deal will give CareFusion shareholders $58 per share; a 26 per cent premium on Friday’s closing price. The deal will create one of the five biggest medical device companies in the world. Read the full story.