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Breakfast Bites - Mon Jul 24, 2023

Rise and shine everyone and Happy Monday!

We have a busy earnings week ahead of us along with macro data and central bank meetings from the US, Europe and Japan.

US Equity Futures look chipper today. Gold, and oil higher. NatGas flat. EUR lower. Bitcoin lower. YC inverted further to -1.025. Yields are lower across the curve.

Asia and Australia

  • Asian equities finished mixed Monday. Greater China stocks at six-week lows with steep falls for the Hang Seng and specifically its property stocks.

  • China Politburo meeting reinforces proactive fiscal policy, prudent monetary policy

  • China property developers selling off in Asian trade Monday with Hang Seng Mainland Properties Index down more than 6% to an almost two-month low.

  • Ahead of the July 27-28 BOJ meeting, consensus surveys have shown the proportion calling for a YCC tweak have ranged from 18% (Bloomberg) to 31% (Nikkei) albeit with varying sample sizes.

  • Japan’s Flash manufacturing PMI was 49.4 in July, down from 49.8 in the previous month.

  • Cathie Wood's Ark, E Fund boost TSMC bets as semiconductor stocks get bubbly

Europe, Middle East, Africa

  • European equity markets mostly higher.

  • Eurozone Flash Manufacturing PMI for July came in at 42.7 vs 43.5 expected and 44.2 prior. Was the 13th straight contraction and lowest since May 2020Services PMI posted a six-month low, coming in at 51.1 vs 51.6 expected and 52.0 prior.

  • The UK flash PMI for July showed the economy is close to stalling after big drop in services sector activity. Composite reading at six-month low of 50.7 versus consensus 52.3 and prior 52.8 after services sector PMI also fell to lowest level since January 2023.

  • Solid EU Q2 numbers thus far, with FX trends favoring domestic names and Retail - Early into Q2 reporting season, EPS growth y/y ahead of expectations, at 20% in Europe for companies that have reported. Cyclicals lagging behind Defensives.

The Americas

  • American Airlines raises offer for new pilot contract by more than $1B to match United deal

  • Oilfield services companies under pressure amid slowdown in US shale patch

  • Morgan Stanley now projects 1.9% GDP growth for the first half of this year. That’s nearly four times higher than the bank’s previous forecast of 0.5%.

  • Domino's Pizza reports Q2 EPS $3.08 ex-items vs FactSet $3.06; Revenue $1.02B vs FactSet $1.07B. Operating margin 19.1% vs FS 17.2%. "We are executing our plan to restore delivery growth in the U.S.," said Russell Weiner, Domino's CEO. The stock is down -3.75% in the pre-market.


(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)


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