Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
WHAT WE’RE WATCHING TODAY
Europe Shares Seen Lower Amid Russia Sanctions
European shares are on track for a lower open today as tensions in Ukraine are back into focus. The FTSE is called down 22 points at 6,762 while the German Dax is seen lower by 13 points at 9,846. The U.S. and the European Union announced a fresh round of sanctions against Russia yesterday following the annexation of Crimea back in April and ongoing tensions in the rest of Ukraine. Russian President Vladimir Putin is reported to have said that relations between the U.S. and Russia are in danger of reaching a dead end and could damage U.S. business interests in his country. On Wall Street yesterday, the Dow index posted its 15th record-high close of the year thanks to a rally in tech shares after Intel posted strong third-quarter guidance.
Economic data also helped to boost sentiment. The Federal Reserve’s Beige Book found the economy expanding at a modest to moderate pace with consumer spending up in all of the Fed’s districts. Another report had U.S. factory output increasing for a fifth month in June. U.S. Federal Reserve Chair Janet Yellen also concluded a second day of congressional testimony, where she faced a multitude of questions from lawmakers about legislation to make the Fed more accountable.
U.S. Unemployment Claims: Increase Expected
The last few months have seen moderately higher increases in non-farm payrolls. On the plus side, there’s been a marked increase in the monthly change, with the net gain running above the 200,000 mark for five straight months through June, the first run of 200,000 plus increases for five consecutive months in nearly 15 years.
Whether the latest run of strength is a genuine sign that the economy’s finally poised to create new jobs on a sustained basis or just another temporary bout of short-term noise that will again give way to the modest increases of recent history, remains to be seen. Watch for today’s weekly numbers on new filings for unemployment benefits. Last week’s report showed that claims fell to 304,000 for the week to July 5 - close to a seven year low. But the data was for the July 4 holiday week and so the latest numbers may be misleading. The consensus prediction is for a slight rise to 310,000. If the prediction holds, it will provide fresh support for thinking that modest improvement in the labour market is still in force.
U.S. Unemployment Claims today @ 12.30 GMT
Tech Stocks: Google Set To Be A Trillion Dollar Company
Google has the potential to hit a trillion-dollar market cap in the next 10 years, according to one technology investing leader who expects the search engine giant to join Facebook in gobbling up smaller companies and continuing to grow rapidly. The rise of the first trillion-dollar companies was one of a handful of big ideas entertained during a recent tech-focused panel where it was noted that companies that can make it easier to make videos will do well. Big things are also predicted for digital currencies, although not necessarily bitcoin, which is the most prominent name now but has faced price volatility, theft and scandal over the past year. Other providers will come along with at least half a dozen multi-billion dollar digital currency companies expected to emerge.
That sums up today’s highlights! Remember to keep in touch for all the latest tradable events of the day. Find us on Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.
