Rise and shine everyone.
No surprise from the Fed yesterday with a 0.25% increase of the Fed Funds Rate. They didn’t close the door to further hikes. If you want to hear our discussion on this - tune in to our Podcast post the FOMC, available on all major platforms.
Meta reported a beat and raise yesterday - the stock is up 8.57% in the premarket this morning. They increased expense guidance but decreased capex guidance. They talked about “Riding AI wave in the near term and Metaverse in the longer term”.
The big news this morning is the ECB’s rate decision at 8:15am ET and the US Q2 GDP Advance numbers at 8:30am ET. Consensus estimate is at 1.8% QoQ growth. We also have the BoJ meeting at 11pm ET for the US; early morning for the rest of the world.
Major earnings today - McDonald’s, Honeywell, MasterCard, Northrop Grumman, SouthWest, AbbVie. After the close, Enphase, Ford, Intel, FirstSolar, T-Mobile, Roku.
US Equity Markets are trading higher this morning alongside Gold, Oil and Bitcoin. The US Dollar has pulled back alongwith with short term rates. The yield curve is at -0.96%.
Asia and Australia
Asia equities ended mostly higher Thursday. Hong Kong higher again with stocks led by EV plays on Volkswagen-XPeng news, mainland markets turned red in the afternoon session. Gains for Japan, South Korea and Taipei; Australia also seeing another strong day.
US Treasury Undersecretary Shambaugh told the Senate Foreign Relations Committee the Biden administration will not hesitate to take targeted actions against China to secure the national security interests.
South Korea's tax code revisions revealed Thursday focused on tax cuts for business and easing of financial burdens in households
Malaysia PM Anwar Ibrahim unveiled plan Thursday that targets reset country's growth trajectory with aim of increasing incomes and female participation in workforce.
Volkswagen invests $700M in China's Xpeng for nearly 5% stake
US interest rate hikes devastate Taiwan's $1T life insurance sector
Europe, Middle East, Africa
European equity markets higher. EUROSTOXX 50 once again above 4,400 level after brief dip on Monday and Tuesday, aided by peak-Fed bets and soothing comments by Fed Chair Powell on Wednesday
The ECB is set to hike rates for the ninth time by 25 bps to take its key deposit rate to 3.75%.
HSBC analysts noted 49% of EU companies' earnings have so far beaten estimates, below long-term average of 55%. Europe on track for worst earnings season since Q1 2020.
Shell and Total Energies both posted disappointing Q2 updates. Shell revealed a big fall in Q2 citing declining energy prices. TotalEnergies posted a drop in Q2 net income citing lower natural gas prices and slimmer refining margins in Europe.
The majority of UK Chancellor Hunt's Economic Advisory Council are worried the BoE may raise rates too much and push the UK into an unnecessary recession.
The Americas
McDonald's beats by $0.39, beats on revs; US comps increased +10.3%; International comps +14%, led by China
Honeywell beats by $0.02, reports revs in-line; guides FY23 EPS in-line, revs in-line
Crocs beats by $0.61, beats on revs; guides Q3 EPS in-line, revs below consensus; raises FY23 EPS above consensus, revs in-line
Carrier Global beats by $0.02, beats on revs; raises FY23 EPS and revenue guidance, still inline
Textron beats by $0.25, reports revs in-line; raises FY23 EPS guidance above consensus; announces buyback
Northrop Grumman beats by $0.01, beats on revs; guides FY23 EPS in-line, raises revs mostly above consensus
Keurig Dr Pepper beats by $0.02, beats on revs; reaffirms FY23 EPS guidance, guides FY23 revs in-line
Bristol-Myers misses by $0.23, misses on revs; lowers FY23 EPS guidance; announces $4 billion accelerated share repurchase agreement; reaffirms 2025 targets
Calendars
(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)
