Five Things Everyone Will Be Talking About Today
Asian stocks rise, precious metals are surging and Fischer is still 'Team2015.' Here are some of the things people in markets are talking about this morning.
Asian stock rally continues
China's Shanghai Composite Index closed 3.3 percent higher amid speculation of further government stimulus to boost the economy. Markets across Asia managed to hold on to last week's gains with the MSCI Asia Pacific Excluding Japan Index up 0.8 percent at 4:13 p.m. in Hong Kong. Tokyo markets were closed for a holiday. Markets in Europe were slipping, with the Stoxx Europe 600 down 0.3 percent to 361.62 at 10:18 a.m. in London.
Precious metals gaining.
Gold rose to its highest level in seven weeks with silver, palladium and platinum also posting more gains following last week's rally. According to U.S. Commodity Futures Trading Commission data combined net long positions in the metals have jumped to their highest level since June.
Fischer still #Team2015
Federal Reserve Vice Chairman Stanley Fischer, speaking at the IMF meeting in Lima, Peru said that the U.S. economy may be strong enough to merit an interest rate increase by the end of the year. He cautioned that policy makers are monitoring incoming domestic data on jobs and will be keeping an eye on international developments when deciding the timing of liftoff. Market based expectations for a rate increase by the end of 2015 have increased slightly to 38.8 percent this morning.
Anheuser-Busch InBev NV has until 5 p.m. on Wednesday to make a formal offer for SABMiller Plc before it has to walk away for six months. The company has discussed raising its offer to 43 pounds a share, according to people familiar with the discussions. Meanwhile, Dell Inc. will announce that it is purchasing data storage provider EMC Corp. for $25 a share in cash plus tracking stock in cloud software maker VMware Inc., valued at about $8 per EMC share, according to a person familiar with the matter.
British Prime Minister David Cameron will attempt to get pledges from his European Union partners on the pound and the role of London's financial district as part of negotiations ahead of the in-or-out referendum on Britain's EU membership that he promised to hold before the end of 2017, according to the Sunday Telegraph. The head of the campaign to keep Britain in the EU said that exit would be a "leap in the dark" at the launch of their campaign in London.
What we've been reading
This is what's caught our eye over the weekend.
- It's Glencore vs. Goldman.
- Higher interest rates would throw bank profits a lifeline.
- The FX option market would rather watch central banks.
- Ferrari's IPO will make the founder's son a billionaire.
- The HSBC whistle-blower fails to show at his trial in Switzerland.
- The Russians are leaving London.
- And it's time for the Nobel prize in economics.
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