The market minute on Tuesday
- Global stocks slide after the Wall Street sell-off last night as global coronavirus infections exceed 13 million.
- US infections continue to rise to 3.3 million, with 135,000 deaths, leading to business closings in California and questions about the pace of domestic economic recovery.
- China’s trade data surprise positively: imports rose 2.7%, but the US trade surplus remains high at $ 29.4 billion in June.
- The oil price is pulling back as the dollar finds buyers and investors question the strength of demand. The OPEC ministerial meeting is scheduled for Wednesday.
- US stock futures suggest that JPMorgan, Citigroup, and Wells Fargo earnings and inflation data for June will be firmer on Wall Street at 8:30 am Eastern Time.
US stock futures rose Tuesday after a wild session on Wall Street yesterday where the Dow returned nearly 600 points on a late afternoon slump as investors saw bank profits, US-China tensions and acceleration of coronavirus infections in major economies followed the world.
However, traders could still get confused after yesterday̵
JP Morgan (JPM) – Get the reportHowever, this could have calmed those nerves after the largest US bank made an unexpectedly strong profit in the second quarter and maintained its quarterly dividend, despite massive $ 10.5 billion in loan loss provisions.
After reaching its highest level since February 25th yesterday afternoon, the S&P 500 closed in negative territory at the close, which was at a disadvantage as a result of profit-taking from major tech names such as Amazon (AMZN) – Get the report, Microsoft (MSFT) – Get the report and Facebook (FB) – Get the report.
The move suggests investors may be ready to cap recent gains, where stocks have risen nearly 40% since their nadir in late March when second-quarter earnings – and earnings forecasts later in the year – disappoint.
Rising coronavirus infection rates could certainly impact earnings visibility as bars and restaurants close in California, school openings in Los Angeles are delayed, and numerous new outbreaks occur in Australia and the UK.
Worldwide, more than 13 million cases have been registered since the outbreak began in early January, more than one million of which have been confirmed in the past five days alone.
Tensions between the U.S. and China, which intensified last week when Washington criticized Beijing’s handling of the outbreak, its interference in Hong Kong politics, and its claim to offshore resources in the South China Sea, could also contribute to the broader market caution who have a lid overnight gains in markets around the world.
However, Wall Street continues to see a positive opening as futures contracts linked to the Dow Jones Industrial Average achieve a modest gain of 130 points and those related to the S&P 500 an increase of 12 points suggest at the start of trading.
However, European stocks dipped lower at the start of trading and prolonged overnight declines in Asia, despite investors cheering on the unexpectedly strong trading data in China and seeing positive signs that the European Union had a 1.2 corona virus stimulus package Trillion dollars would approve later this week.
The Stoxx 600 Europe benchmark, the broadest measure of stock prices in the region, was 1.3% lower in early trading. This resulted in a 1.5% decline in the German DAX performance index and a 0.33% decline in the UK FTSE 100.
Overnight in Asia, Chinese customs officials said that June exports rose surprisingly by 0.5% year over year, while imports rose 2.7%, reflecting both an improvement in domestic demand and a stronger recovery of the factory in the second largest economy in the world.
China’s trade surplus with the United States, a longstanding focus of President Donald Trump, was $ 29.4 billion, a decrease of only $ 500 million year-on-year and an increase of $ 27.8 million in May corresponds.
In terms of equities, the MSCI regional benchmark excluding Japan fell 1%, reflecting declines in Hong Kong and Shanghai, while the Japanese Nikkei 225 cut the session 0.87% to 22,887.01 points.
Global oil prices also fell Tuesday, despite China’s stronger trade data, as a stronger US dollar and the specter of easing OPEC production cuts held the bulls at bay later this week.
WTI contracts for delivery in August, the US benchmark, were 26 cents lower than on Monday in New York and changed hands in early European trading at $ 39.77 a barrel, while Brent contracts for August, the global benchmark were down 26 cents per barrel at $ 42.46.