Pre financial crisis sentiment reached in US stock marketChris Middlebrooks (Author) Published Date : Aug 26, 2014 15:21 IST
Stock markets at the United States of America marked a higher opening with the S&P testing 2000. This happened for the second consecutive day. The noisy durable goods data were largely ignored by the investors. The data saw the headline boosted by a large seasonal uptick in plane orders.
US consumer confidence in August touched the highest levels since Oct of 2007 while many stock markets held onto close to historic highs while the rates slogged along at multiyear lows in US and historic lows in Europe.
Trade remained lenient while the geopolitical headlines continued to be monitored very closely to see if there is any potential swing of the momentum. Russia president Putin and Ukraine president Poroshenko are set to have a meet at Minsk despite the fact that there are very low expectations of any type of breakthrough. Reports are also coming up from the Middle East directing that the Palestinian and Israeli officials might have reached a common ground for a longer term truce framework and put an end to the recent crisis at the Gaza strip.
Meanwhile it was confirmed by the Burger King Worldwide Inc. of reaching a deal to buy Tim Hortons Inc.
It has been widely reported in the media that the deal between Burger King and Tim Hortons is worth US $11 billion. It made stocks of both the company experience an upside trend after Warren Buffett involved itself in the deal as the financer of the takeover.
On the other hand, Berkshire Hathaway has committed preferred equity financing worth US $3 billion. Some 51 percent of the new company will be owned by 3G Capital. Berkshire however is being said not to have any participation in the management and operation of the business. The company back in 2013 joined with 3G to buy H.J. Heinz & Co.
Pre financial crisis sentiment reached in US stock market