By James Langton
(November 8 – 09:00 EST) – The Microsoft case. That’s the center of talk today. In recent weeks markets have faced down numerous challenges including inflation fears, weak bonds and wonky resource prices. Today traders will attempt to digest the court’s remarks and it’s potential impact on corporate expansionism.
The news about the tech giant is dragging down European and Asian stock markets. It looks like it will hit North American markets too. Its shares have already fallen about 13% in Europe and Asia; they’re dragging S&P futures down too.
On Friday after the market close, the Judge in the Microsoft’s anti-trust case released his findings of fact. These findings will make up the evidence for his final ruling. He said Microsoft has shown signs of exercising monopoly power, stifling innovation and gouging customers. The court’s eventual ruling may mandate a break up of Microsoft. Gates and Co. are no doubt seriously considering the merits of settling the case before that kind of break-up ruling is made.
Over on the interest rate front, markets will be looking ahead to next week’s meeting of the U.S. Federal Open Market Committee. There are no major economic releases on either side of the border today.
Microsoft is weighing down on global markets. London’s FTSE 100 is off about five points so far. France’s CAC 40 is off 18 points and the German DAX is down 19 points. The Nikkei closed down by 113 points, and the Hang Seng dropped 89 points.
Mosaic Group Inc. announced third quarter results for the quarter ended September 30 – reporting 9¢ this year, up from 6¢ last year.