Rise and shine everyone and Happy August.
It’s hard to believe that we’re closer to the end of the year than the beginning and we’ve already crossed 50% of earnings season.
The big news this morning was the Reserve Bank of Australia leaving their cash rate unchanged at 4.1%, while leaving the door open to further hikes. We also have a big day of economic indicators for the US with the JOLTS data and ISM data on the cards today.
We also have important earnings with Caterpillar, Uber, Pfizer and Merck before the open and AMD, Starbucks, Pinterest and Devon Energy after the close.
US Equity Futures are trading lower this morning after a surge into the close yesterday. Gold, Crude Oil and Bitcoin are all trading lower. The US Dollar and Rates are higher, more so on the long end. The Yield Curve is at -0.90%.
Asia and Australia
Asian equities mixed Tuesday. Hang Seng retreated from an early advance, mainland mostly lower too. Meanwhile Kospi, Nikkei and ASX advance.
Caixin manufacturing PMI was 49.2 in July, versus consensus 50.1 and 50.5 in prior month, back into contractionary territory after expansion in May and June. Notable falls in new export orders (lowest since September) amid muted foreign demand.
Data from China Real Estate Information Corp. (CRIC) shows value of new home sales in China by top 100 property developers fell -33.1% YoY to CNY350.4B ($49B) for second month in a row. Sales dropped -33.5% MoM.
Greater China stocks post best month in July since January on Beijing's policy support pledges.
Japan unemployment rate edges lower, but job offers growth sluggish. Unemployment rate was 2.5% in June, matching expectations, following 2.6% in the previous month.
South Korea exports tumble, PMI offers signs of stabilization. Customs exports fell 16.5% y/y in July, marking the biggest decline since May 2020, compared to expectations of a 15.0% drop.
Traders pay $200K a day to ship gas as tankers become scarce ahead of winter.
Europe, Middle East, Africa
European equity markets lower. Energy and Healthcare lead; Autos/Parts, Basic Resources and Financial Services lag.
Strong Q2 performance from banks continues as HSBC profit more than doubles.
Final Eurozone manufacturing PMI reading unchanged from flash at 38-month low of 42.7 versus prior 43.4.
EZ June unemployment was at a record low of 6.4%, stable compared with May and slightly below market forecasts of 6.5%. German unemployment increased by 62,000 in July despite seasonally adjusted unemployment rate decline to 5.6%.
EZ earnings for Q2 mostly in line with expectations and surprised -1% to the downside for STOXX 600 ex-financials.
UK earnings appears to be outperforming. 40% of FTSE 350 market cap has reported earnings, with Goldman Sachs noting sales and earnings surprised by ~2% and 7% equal weighted, with the surprise being slightly stronger excluding commodities.
BP misses on weaker refining margins and trading income, but boosts capital return
The Americas
Long/short hedge funds forced to unwind bets to avoid further losses in the wake of July's market rally
Top active fund managers struggling to attract money from large investors as cash accounts offering best yields in years
Canadian GDP rose 0.3% in May, slightly below expectations after a 0.1% gain in April.
Exxon Mobil in talks with Tesla, Ford to supply lithium
Diamondback Energy misses profit estimates on weaker gas prices
Calendars
(news taken from Reuters, FT, Bloomberg; Calendar from Benzinga Pro)
