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Markets are called to open lower this morning. This is what's happening today:
EARNINGS All times CET, estimates where available:
European shares fell, extending a global rout, on concern the Federal Reserve may phase out stimulus and as China’s cash crunch worsened. Bond risk in Asia
surged and commodities declined.
The Stoxx Europe 600 Index lost 1.5 percent by 8:04 a.m. in London as the MSCI Asia Pacific Index slumped 3.8 percent, set for its biggest loss since September 2011. The MSCI All Country World Index was down 1 percent as Hong Kong’s Hang Seng Index fell 2.8 percent and Standard & Poor’s 500 Index futures slid 0.4 percent. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan headed for its highest close since Aug. 2, while the S&P GSCI Index of commodities slipped 1.5 percent. The rupee sank to a record. Treasuries held a three-day slide.
Chairman Ben S. Bernanke said the Fed may start reducing bond purchases that have fueled gains in markets globally, and end the program in 2014 should risks to the U.S. economy abate. China’s benchmark money-market rate climbed to a record and a private report showed manufacturing shrank at a faster pace this month. U.S. data today is expected to show improvement in U.S. manufacturing and the housing market.
“Many investors were hopeful that the party of cheap, easy money will go on for the next two years and here’s the Fed signaling the bar will close soon,” said Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank Inc., the largest bank by assets in the Philippines. “A contraction in China is going to worsen the hangover.”
Stock to watch: FedEx (Price $100.54, Price Target $123)
Deutsche Bank Research: We expect FedEx shares to outperform the broader market as investors look to own companies with strong long-term growth potential and company-specific catalysts. While FDX has significant operating leverage in an uncertain economic backdrop, we see compelling valuation and earnings improvement potential as FDX improves Express margins, grows its high margin Ground business, and the company benefits from U.S. domestic small package market consolidation. FDX stands to benefit from better yields across its four business segments (FedEx Express, Ground, Freight and Services). BUY.
For further information on FedEx or other stocks and bonds we follow, contact our offices on 25688688.
Good day and happy trading!
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