InBev-SAB Agreement Continues to Cause Ripples, Non-OPEC Meeting Mooted as Crude Drops Below $50
October 14, 2015 7:16 am
The United States saw losses across the board yesterday, with frustration high over the position of equivocation seemingly embraced by the US Federal Reserve with regards to Interest Rate Rises; the tech heavy Nasdaq losing 0.87%, the Dow Jones down 0.29% and the S&P finishing 0.68% lower. These losses rolled over into the Asian session, with the Hang Seng, Nikkei and Shanghai Composite Indices all closing down as well, by 0.71%, 1.89% and 0.93% respectively. Chinese CPI data came in at 1.6%, lower than predicted and providing further evidence of China’s economic slowdown. However, there may at least be some relief that the Shanghai Composite inched downwards in response to the news rather than plummeting; the 0.93% drop will have seemed like a love tap compared to the hammerings of 7 or 8% that were happening daily a short while ago.
In the currency markets, Dollar YEN is currently around 119.66. EUR/USD added 0.2% on the day trading in the region of 1.1396 having risen to a 3 and a half week high overnight at 1.1411. The Dollar index fell 0.1% to 94.645.
In commodities today, the slight Crude Oil bounce recently appears to have been short-lived, with both WTI and Brent now back below the $50 mark. Venezuela, an OPEC nation, is currently organising a meeting of Non-OPEC countries due to take place in Vienna, where they will discuss the possibility of instituting production cuts to control prices. OPEC has consistently refused to cut its production levels.
The announcement of a merger agreement between Anheuser Busch InBev and SAB Miller has created ripples in the market, with some companies surging and others slumping. The big winner in the US stock markets yesterday was another US brewing company, Molson Coors. Molson currently operates a joint venture with SAB Miller in the United States – MillerCoors – and investors appeared to be looking at the possibility that regulators would be looking for SAB Miller to relinquish its majority stake in the partnership, putting Molson in a strong position to snap up the rest of Miller Coors. Molson Coors stock jumped by close to 10% yesterday. Meanwhile, Monster Beverage Corp closed down by 4.2% yesterday; SAB Miller has a line of energy drinks – could investors have been looking at a new InBev-SAB powerhouse mounting a serious challenge to Monster? The direction of the stock in coming days may either confirm or refute that suspicion.
The United States saw losses across the board yesterday, with frustration high over the position of equivocation seemingly embraced by the US Federal Reserve with regards to Interest Rate Rises; the tech heavy Nasdaq losing 0.87%, the Dow Jones down 0.29% and the S&P finishing 0.68% lower. These losses rolled over into the Asian session, with the Hang Seng, Nikkei and Shanghai Composite Indices all closing down as well, by 0.71%, 1.89% and 0.93% respectively. Chinese CPI data came in at 1.6%, lower than predicted and providing further evidence of China’s economic slowdown. However, there may at least be some relief that the Shanghai Composite inched downwards in response to the news rather than plummeting; the 0.93% drop will have seemed like a love tap compared to the hammerings of 7 or 8% that were happening daily a short while ago.
In the currency markets, Dollar YEN is currently around 119.66. EUR/USD added 0.2% on the day trading in the region of 1.1396 having risen to a 3 and a half week high overnight at 1.1411. The Dollar index fell 0.1% to 94.645.
In commodities today, the slight Crude Oil bounce recently appears to have been short-lived, with both WTI and Brent now back below the $50 mark. Venezuela, an OPEC nation, is currently organising a meeting of Non-OPEC countries due to take place in Vienna, where they will discuss the possibility of instituting production cuts to control prices. OPEC has consistently refused to cut its production levels.
The announcement of a merger agreement between Anheuser Busch InBev and SAB Miller has created ripples in the market, with some companies surging and others slumping. The big winner in the US stock markets yesterday was another US brewing company, Molson Coors. Molson currently operates a joint venture with SAB Miller in the United States – MillerCoors – and investors appeared to be looking at the possibility that regulators would be looking for SAB Miller to relinquish its majority stake in the partnership, putting Molson in a strong position to snap up the rest of Miller Coors. Molson Coors stock jumped by close to 10% yesterday. Meanwhile, Monster Beverage Corp closed down by 4.2% yesterday; SAB Miller has a line of energy drinks – could investors have been looking at a new InBev-SAB powerhouse mounting a serious challenge to Monster? The direction of the stock in coming days may either confirm or refute that suspicion.
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