Share

US futures rise on hopes for ECB action

New York - US stock index futures were modestly higher on Monday, indicating the S&P 500 would open near record levels, amid corporate merger activity and as hopes grew for more monetary stimulus in European markets.

* US investors took cues from Europe, where an index of major shares rose 0.7% after European Central Bank President Mario Draghi said Friday the ECB was prepared to respond with available tools if inflation dropped further.

*Investors took this to mean the ECB could start an asset purchase programme or adopt other stimulus measures in the coming months, which would boost assets like stocks and bonds.

* Draghi spoke at a global central banking conference in Jackson Hole, Wyoming. US Federal Reserve chair Janet Yellen spoke, too, but didn't provide hints on the timing of any interest rate hikes, contributing to a modest equity market decline on Friday.

* InterMune jumped 37% to $73.48 in premarket trading after Roche Holding AG agreed to buy the biotechnology company for $8.3bn in cash. The deal is the latest vote of confidence in the biotech sector, which many - including Yellen - worry is overvalued.

* S&P 500 e-mini futures rose 6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicating a higher open. Dow Jones industrial average e-mini futures added 44 points and Nasdaq 100 e-mini futures rose 15.5 points.

* US stocks have been strong of late. Major indexes closed a third week of gains on Friday, with the Dow and S&P enjoying their best weeks since April. The S&P hit an intraday and closing high last week, and market participants are looking for the benchmark index to pierce the 2 000 level for the first time.

* Burger King is in talks to acquire Canadian coffee and doughnut chain Tim Hortons, in a deal that would be structured as a so-called tax inversion transaction to move Burger King's domicile to Canada, which has lower overall corporate taxes.

* The Wall Street Journal reported that activist Investor Engine Capital LP wants Ann to sell itself, believing the company could fetch around $2.5bn.

* A cyber attack took down Sony's PlayStation Network over the weekend, though it was back online on Monday.

* Investors continued to eye tensions between Ukraine and Russia, with Ukraine's military saying its government force had engaged with a separatist armoured column near the southeastern town of Novoazovsk, not far from the Russian border.

* Traders are looking ahead to a read on July new home sales, as well as August data on the services sector from financial data firm Markit. The Markit data will be released at 15:45, and the housing data at 16:00.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders