The morning market overview compiled by Dow Jones Newswires:
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+++++ HOLIDAY NOTICE +++++
MONDAY: Stock markets in Japan remain closed for the Maritime Day holiday.
+++++ TOPIC OF THE DAY +++++
The Chinese economy grew 6.3 percent in the second quarter compared to the same period last year. Growth has thus accelerated compared to the first quarter. This is due to a low baseline in the comparative period, when the country’s economy was impacted by Covid-19 and lockdowns. The increase, while ahead of the 4.5 percent growth recorded in the first quarter, fell short of the 6.9 percent expected. Compared to the previous quarter, the increase was 0.8 percent, compared to 2.2 percent before. Meanwhile, industrial production in June rose by 4.4 percent year-on-year, more than the estimated 3.0 percent. Retail sales grew by 3.1 percent.
China’s central bank, meanwhile, has injected liquidity into the country’s financial system through its monetary policy tools at unchanged interest rates, signaling that it will hold interest rates this month following June’s interest rate cuts.
+++++ ECONOMIC OUTLOOK +++++
– U.S
14:30 Empire State Manufacturing Index July
FORECAST: 0.0
before: 6.6
+++++ OVERVIEW INDICES +++++
Level +/- %
E-Mini Future S&P 500 4,533.50 -0.1%
E-Mini Future Nasdaq-100 15,685.75 -0.1%
Nikkei-225 Holiday
Hang Seng Index No trading due to typhoon warning
Kospi 2,615.17 -0.5%
Shanghai Composite 3,199.62 -1.2%
S&P/ASX 200 7,301.00 -0.0%
+++++ FINANCIAL MARKETS +++++
EAST ASIA (HISTORY)
Weak – Topics of the day are China’s GDP growth and the Chinese central bank’s interest rate policy. Although Chinese GDP grew by 6.3 percent compared to the same quarter last year, economists had expected more. Industrial production, which increased much more strongly than expected in June, provides a certain mood balance. The Chinese central bank (PBoC), meanwhile, left interest rates unchanged this time, as expected by the majority, after having lowered them slightly in June. The central bank should monetary policy likely to ease further after the July Politburo meeting, when the government is expected to announce a more comprehensive stimulus package, Commerzbank said. The stock market in Shanghai was already down around 1 percent before the various economic data of the day, so it has not shown any major reaction to the numbers so far. The offshore yuan, meanwhile, is bouncing back against the dollar. In Seoul, market participants are talking about profit-taking after several days of winning streaks in some stocks. Among other things, the Hanwha Systems armor value is back by around 6 percent after having increased on seven of the past ten trading days.
Tokyo stood idle due to a public holiday and Hong Kong’s bourse remained suspended on Monday due to a typhoon alert in the city. The complete cancellation came after the stock market had initially only stopped morning trading after the Hong Kong Observatory’s typhoon signal of magnitude 8.
US AFTER MARKET
Bridgebio Pharma is up 14 percent. The company’s announcement that it would be presenting the results of the final phase of a study for a heart drug in the coming week created a buying mood. Universal Security Instruments grew nearly 10 percent. The provider of security devices for real estate had reported unexpectedly good quarterly figures. BYND Cannasoft Enterprises fell 24 percent. The Israel-based integrated software and cannabis company’s stock had been upset by the announcement of a capital increase.
WALL STREET
INDEX last +/-% absolute +/-% YTD
DJIA 34,509.03 +0.3% 113.89 +4.1%
S&P 500 4,505.42 -0.1% -4.62 +17.3%
Nasdaq Comp. 14,113.70 -0.2% -24.87 +34.9%
Nasdaq-100 15,565.60 -0.0% -6.38 +42.3%
Friday Thursday
Revenue NYSE (shares) 807mn 828mn
Winners 734 2,061
Losers 2,224 876
unchanged 77 108
Mixed – Initially, positively received business figures from the banking sector and renewed low inflation data in the form of lower import prices in June provided support. However, this picture then began to crack as US consumer confidence brightened much more than expected, dispelling recession worries and fueling interest rate hike worries. In addition, US Federal Reserve Banker Christopher Waller had called for two further interest rate hikes in 2023. JP Morgan increased profits surprisingly significantly, after initially higher premiums, the share closed 0.6 percent higher. Wells Fargo’s earnings growth (-0.3%) also impressed, although deposits were down. Citigroup (-4%), on the other hand, saw a significant drop in profits, although it still performed better than expected. Unitedhealth earned more than expected and increased annual targets. Thanks to the strong increase in the share of 7.2 percent, the Dow was just in the plus.
US BONDS
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.73 +8.4 4.65 31.0
5 years 4.03 +7.5 3.96 3.3
7 years 3.93 +6.4 3.86 -4.4
10 years 3.82 +5.2 3.77 -6.2
30 years 3.92 +1.9 3.90 -4.9
Yields rose after falling sharply in the previous days as rate hike speculation waned. Above all, however, the sharp fall in US consumer confidence ensured that concerns about interest rate hikes boiled up again.
CURRENCY
last +/- % 00:00 Fri, 9:52 % YTD
EUR/USD 1.1226 -0.0% 1.1229 1.1215 +4.9%
EUR/JPY 155.53 -0.2% 155.77 155.12 +10.8%
EUR/GBP 0.8576 -0.0% 0.8577 0.8555 -3.1%
GBP/USD 1.3086 -0.0% 1.3093 1.3108 +8.2%
USD/JPY 138.59 -0.1% 138.73 138.32 +5.7%
USD/KRW 1,264.92 -0.3% 1,269.31 1,266.27 +0.2%
USD/CNY 7.1703 +0.4% 7.1413 7.1378 +3.9%
USD/CNH 7.1779 +0.3% 7.1585 7.1418 +3.6%
USD/HKD 7.8108 -0.0% 7.8145 7.8177 +0.0%
AUD/USD 0.6813 -0.4% 0.6838 0.6870 -0.0%
NZD/USD 0.6349 -0.3% 0.6367 0.6376 -0.0%
Bitcoin
BTC/USD 30,314.84 +0.0% 30,299.97 31,161.37 +82.6%
YTD based on the closing price of the previous day
The dollar recovered slightly from its sharp declines in recent trading days, but the dollar index was still below the key 100 mark despite a plus of 0.2 percent. Revived interest rate hike concerns provided some support.
++++ RAW MATERIALS +++++
OIL / GAS
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 74.68 75.42 -1.0% -0.74 -5.9%
Brent/ICE 79.10 79.87 -1.0% -0.77 -4.9%
YTD based on the closing price of the previous day
Oil prices fell by around 2 percent, but rose for the third time in a row on a weekly basis. US inflation data this week eased concerns about the economy and demand, and a supply disruption in Libya pushed up prices, it said. The dollar recovery has now encouraged profit-taking.
METALS
last day before +/- % +/- USD % YTD
Gold (Spot) 1,955.34 1,955.13 +0.0% +0.21 +7.2%
Silver (Spot) 24.83 24.95 -0.5% -0.12 +3.6%
Platinum (Spot) 972.00 978.20 -0.6% -6.20 -9.0%
Copper Future 3.88 3.93 -1.1% -0.04 +1.8%
YTD based on the closing price of the previous day
+++++ REPORTS SINCE FRIDAY 8 PM +++++
CANADA
The severe forest fires in Canada have already destroyed ten million hectares of land since the beginning of the year. According to government data, this is an absolute record.
SOUTH KOREA
The death toll from landslides and floods caused by heavy rains has risen to at least 33.
THAILAND
The reformist election winner Pita Limjaroenrat has announced his withdrawal from the race for the post of prime minister if he again fails to secure a majority in parliament.
MICROSOFT
An appeals court has rejected a recent attempt by the US antitrust authority FTC to prevent Microsoft’s planned takeover of video game producer Activision Blizzard for 75 billion dollars.
TWEET
has according to the owner Elon Musk lost half of its ad revenue as competition between microblogging platform and meta competitor Threads intensifies.
UNITED AIRLINES
has provisionally agreed with its pilots on salary increases of 34.5 to about 40 percent. Airlines are currently struggling with a pilot shortage.
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DJG/flf/gos
(END) Dow Jones Newswires
July 17, 2023 01:52 ET (05:52 GMT)