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I'm Amy Anderson for the Optionally News Team Let's take a look at the global market highlights
and news that all traders and investors should be aware of.
Wall Street recovers Bill Gates stepping down at Microsoft
And The Yen strength killing the Nikkei
Let's take a quick look at what is happening in the global markets now.
Global markets recovered from Monday's plunge and look to trade on the upside today. Corporate
earnings shined giving investors a reason to cheer. Investors were also seen bargain
hunting, swooping on beaten down stocks in the wake of a 5 per cent fall in the broad
S&P 500 Microsoft said that founder Bill Gates was
stepping down as chairman to become a technology adviser and Satya Nadella, head of its cloud-computing
division, would succeed Steve Ballmer as chief executive. Microsoft shares rose 0.5 per cent.
Back to the retail sector mass merchant JC Penney dropped over 10 per cent despite announcing
that comparable store sales in the fourth quarter rose 2.0 per cent, according to preliminary
data, the first increase since the second quarter of 2011. .The discount retailer which
has been losing hundreds of millions of dollars per quarter is trying to turn its fortunes
around. But Wall Street is NOT convinced it can deliver. The stock is already down roughly
44% this year after an even tougher 2013. Shares plunged 54% and the company was removed
from the S&P 500 in November. European shares ended the day mixed with very
little to guide them as traders watched Wall Street for clues. Asian markets this morning
are trading in the red led by the Japanese Nikkei which fell to its lowest level in 4
monthS. An official at a major brokerage said investors have developed a sense of uncertainty,
which has led to the current risk-averse sentiment.
In the foreign exchange markets the yen got a boost in Asian trade this morning after
a global stock market rout spooked investors ahead of the dual central bank meeting and
the US nonfarm report due this week. The dollar bought 101.27 yen. The euro was
mixed at $1.35-16 and 1-36.87 yen, as speculation grows that the European Central Bank might
cut interest rates after its Thursday policy meeting.
Traders moved into the Japanese currency, seen as a safe haven in times of turmoil,
after weak US data compounded worries about emerging markets and fueled a global equity
market sell-off this week.
Moving to the commodities market, gold held on to strong gains yesterday as Asian equities
slumped and investors worried over US economic growth after disappointing manufacturing data.
Turmoil in emerging markets, due to the Fed's reduction of tapering, is causing some investors
to become risk-off so they are looking to gold which has regained its status as a safe-haven
asset. Gold is trading at 12-53.80 this morning. WTI crude oil gained in early Asian trade
on the expectation that U.S. oil storage at a key delivery point would show a large drop
with a persistent cold snap driving demand for heating fuels in the world's largest economy.
Crude oil rose 43 cents up at $97.62
This is Amy Anderson from OptionRally signing off. Follow me on Facebook and watch for our
new financial terms of the day and our weekly events news.