Equity markets continue to rally, shrugging off the virus as a non event, Wall Street marked another record high as did Europe Tuesday, while in Asia, even COVID-battered India saw stock markets post all time highs
A bounce in Chinese tech stocks was another reason to cheer as the dust settled on the “spiritual opium” attack on the video game industry.
Bond markets tell a different story. Treasury yields are struggling below 1.20%, even after some reassuring factory orders data.
Upcoming data could test this diverging trend.
In focus now is the ADP employment survey, which will set the stage for Friday’s NFPs the last set of labor figures the Fed will see before Jackson Hole, no tapering signal seen there.
The earnings season meantime continues to deliver.
Q-2 profits at Europe Inc are now seen growing at 140% Y-Y the highest rate ever, while corporate America is set for a 90% surge.
In Asia, Toyota posted a record Quarterly operating profit
Stocks futures flag mild gains in Europe, undeterred by the Q2 loss at Germany’s Commerzbank, while Wall Street are flatlining.
M&A newsflow continues apace, though the UK is reportedly considering blocking Nvidia’s $40 billion acquisition of chip designer Arm.
M&A deals worth $3.3-T were recorded during the 1st 7 months of y 2021, the highest year-to-date total since records began in Y 1980.
Key developments that will give us more direction to markets Wednesday are the following:
– Growth in China’s July services activity speeds up, but risks loom – Caixin PMI
– Japan’s service sector activity shrinks at faster pace in July – PMI
– Eurozone retail sales
– Emerging markets: Thailand, India, Georgia central banks meet
– Fed speakers: Fed Vice Chair Richard Clarida
– US ADP payrolls
– US earnings: Marathon, Kraft Heinz, New York Times, Tupperware, Jones Lang LaSalle, Fox, Western Union, Metlife, MGM, Manulife
European earnings: Commerzbank, Siemens, Intesa, Tenaris
Data as of 4 August 2021. All quotes delayed at least 15 mins.
|.TRXFLDJPP||Thomson Reuters Equity Japan Index||3:36am EDT||168.75||-0.85||-0.50%|
|.TRXFLDHKP||Thomson Reuters Equity HK Index||3:38am EDT||312.26||+2.31||+0.75%|
|.TRXFLDINP||Thomson Reuters Equity India Index||3:38am EDT||1,975.90||-0.46||-0.02%|
|.N225||Nikkei Stock Average 225||2:15am EDT||27,584.08||-57.75||-0.21%|
|.HSI||Hang Seng Index||3:54am EDT||26,441.24||+246.42||+0.94%|
|.AORD||ASX All Ordinaries Index||2:53am EDT||7,778.70||+28.20||+0.36%|
|.KS11||KOSPI Index||2:30am EDT||3,280.38||+43.24||+1.34%|
|.SETI||SET Composite Index||3:52am EDT||1,539.44||-1.07||-0.07%|
|.JKSE||Jakarta Composite||3:39am EDT||6,145.90||+15.33||+0.25%|
|.PSI||PSE Composite Index||12:50am EDT||6,585.21||+25.15||+0.38%|
|.SSEC||Shanghai Composite Index||3:39am EDT||3,477.22||+29.23||+0.85%|
|.BSESN||S&P BSE Sensex||3:54am EDT||54,315.19||+491.83||+0.91%|
|.FTFBMKLCI||FTSE Bursa Malaysia KLCI||3:54am EDT||1,489.26||-11.00||-0.73%|
|.HNX30||HNX 30 Index||2 Aug 2021||520.06||+10.66||+2.09%|
Have a prosperous day, Keep the Faith!