Microsoft/Yahoo! rumours set to push up US markets

US stock markets could be buoyed today (July 2nd) on the rumour the Microsoft is about to unveil a new bid for rival Yahoo!.

The Windows giant originally put a $47.5 billion (£24 billion) bid for the search engine earlier this year, but this was rejected as too small.

Now, however, the Wall Street Journal is reporting that Microsoft has been in talks with other media companies about a possible joint move that would effectively break up Yahoo!.

While Microsoft and Yahoo! have both so far refused to comment on the rumour, Thomson Financial has reported that experts believe the news will buoy the US markets when they open.

It claims that IG Index is predicting "the Dow Jones Industrial Average is expected to open up 20 points at 11,402".

The news agency added that the markets could be pushed up even more after the late announcement last night that Starbucks plans to close 600 of its US outlets.

Thompson Financial said the move "addressed concern over [Starbucks''] ailing US business".

Despite these positive factors, concerns remain that oil prices will continue to dampen any recovery for US stocks.

"High price of oil, nevertheless, remained a source of concern," the news agency added. "Crude futures were higher overnight after Opec''s president talked of uncertainty surrounding future investment in energy facilities to boost crude output.

"US weekly supply data due out later on Wednesday is also expected to show a drawdown in crude supplies."