What you need to know before the US open
US markets are expected slightly higher today, although concerns remain when it comes to ongoing geopolitical issues.
Indices fell yesterday, although the selloff was concentrated in the Nasdaq. G7 leaders have threatened Russia with further sanctions if Vladimir Putin continues to destabilise Ukraine, following the seizure of Crimea.
That said, Russian markets have steadied today, with the rouble gaining against the dollar, and there are some hopes that the threats, particularly those on energy supply, won’t be actioned.
Investors are also wary around China, where slowdown continues and hopes are that the government will intervene with stimuli to boost the economy.
On the data front, we’ve just had some house price numbers in.
The US house price index was up 0.5 per cent in January – expectations were for a 0.7 per cent increase. The purchase-only index for the US has shown increases in the last 23 out of 24 months.
Over the year, prices climbed 7.4 per cent. The index is eight per cent below its April 2007 peak, and about the same as it was in May 2005.
The Case-Shiller home prices index climbed 0.8 per cent month-on-month, beating expectations of a 0.6 per cent increase. Year-on-year, however, it was a slight miss at 13.2 per cent, expected 13.34 per cent.
Corporate news
US pharmacy Walgreen’s saw its second quarter results slide below expectations, with adjusted net earnings of $880m. It said that it’s beginning to see some cost benefits since its acquisition of part of Alliance Boots.
Carlyle’s said that Michael Cavanagh, the chief executive of JP Morgan Chase investment bank, is to become co-president and co-chief operating officer, alongside Glenn Youngkin.
And American Apparel has announced a $30.5m stock offering to try and meet an April debt payment deadline.
Data in focus
• 2.00pm: US Feb new home sales
• 2.00pm: US March consumer confidence