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Breakfast Bites - Tue Jul 25, 2023


Rise and shine everyone.


We have a busy day for earnings today with Verizon, GM, Raytheon & 3M reporting before market open and Microsoft, Google and Visa reporting after market close.


We also have the S&P Case-Shiller Home Price Index on the economic calendar.


US Equities are trading higher again this morning. Treasury Yields on the long end are seeing a lift with the Yield Curve steepening slightly to -0.98%. The US Dollar Index is marginally stronger, Oil, Gold and Bitcoin large flat. Agriculture futures are seeing a marginal pullback.


Asia and Australia

  • Asian equities ended mostly higher Tuesday. Hang Seng led the region as investors reacted positively to Beijing's latest support signals, mainland stocks also higher.

  • Greater China equity markets rebounded significantly Tuesday, recovering from multi-month lows reached on Monday. The Hang Seng gained 4.1% and the Shenzen Index up 2.5%. Traders focused on politburo officials' pledge to ramp up policy support by boosting consumer demand, giving greater help for property sector.

  • South Korea GDP slightly ahead of expectations, but details soft. GDP expanded 0.6% QoQ in Q2, compared to consensus 0.5% and follows 0.3% in the previous quarter. However, private consumption and gross fixed capital formation were both negative.

  • Sri Lanka rupee sinks as interest rate cuts, loosening of import controls weigh

  • Cereal shortages may fuel inflation in India as rice, corn and wheat prices rise substantially


Europe, Middle East, Africa

  • European equity markets mostly higher.

  • The German Ifo business climate survey for July sees further deterioration to 87.3 versus consensus 88.0 and prior 88.5.

  • Most recent ECB bank lending survey showed record drop in company loan demand to all-time low since start of survey in 2003. Credit conditions tightened more than expected in Q2.

  • The BoE quarterly update on its Asset Purchase Facility (APF) projected a net loss of ~£100B by 2033 based on prevailing market rate path.

  • UK pledges crackdown on harmful ads on Google and other web platforms


The Americas

  • Growing US labor supply helping to limit wage growth, making it easier for Fed to achieve soft landing

  • JPMorgan's Kolanovic sticks with bearish call on US stocks, citing weak breadth and lagged effect of policy tightening

  • General Motors reports Q2 EPS beat $1.91 ex-items vs FactSet $1.86; Revenue beat $44.75B vs FactSet $42.13B; Raises Net Income forecast by close to $1B.

  • Verizon Communications reports Q2 EPS beat $1.21 ex-items vs FactSet $1.17; Revenue miss $32.6B vs FactSet $33.30B


Calendars

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




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