The Wednesday Market Minute
- Global stocks mixed as China stimulus supports Asia; Europe and Wall Street changed little.
- Oil and commodities are fueled by expected demand from China, a weak US dollar.
- European Commission President Jean-Claude Juncker goes to Washington for trade talks with President Donald Trump
- US. Stock futures point to short selling on Wall Street, with A & T shifting pre-trade to second-quarter sales
- Dow components' Q2 earnings share Boeing, Visa and Coca-Cola and Ford outperformed GM and AMD. Facebook reports after the bell
Global stocks traded Wednesday mixed with markets in Asia by the prospect of billions in new stimulus from China impulses, while investors elsewhere continue to point to the strength of corporate earnings Concentrated season and a key summit on trade between Europe and the United States later today in Washington.
China's plan to increase government spending while tax breaks for smaller companies in the tech sector were extended to companies in various parts of the economy gave shares In Asia, Wednesday had a moderate tailwind as investors bet the effects of the impending US tariffs on goods produced in China are partially offset. President Donald Trump said he was ready to reach $ 500 billion, another year of record trade deficits with the world's second largest economy.
The China plan also provided support for metal and commodity prices, both of which widened Wednesday's gains due to an expected boost in demand from Beijing. This allowed the region-wide MSCI Asia ex-Japan Index, the broadest stock price index, to rise 0.23% higher by the end of the session, while the Japanese Nikkei 225 recorded a solid gain of 0.46% and the trading day at 22,61
However, European equities did not change much at the start of trading as investors once again tracked down a number of blue chip corporate profits and observed developments in the ongoing trade dispute between Washington and Brussels. The regional Stoxx 600 Index was 0.07% higher at the opening price, despite the fact that the benchmarks in Germany and the UK fell slightly into the red in the second quarter, despite divergent earnings reports.
Deutsche Bank (DB) was the largest daily newspaper The German lender reported a decline in net profit of 14% to € 404 million on sales of € 6.6 billion. However, both numbers were stronger than the market had expected earlier this month when the Germans announced the improvement of a surprise July 16 release. The bank's shares were 0.43% higher in early Frankfurt trading following its release.
European Commission President Jean-Claude Juncker will lead a delegation from the 28-member EU seeking to circumvent Trump's trade and customs duties
Reports indicate that the EU is ready to expand its own tariff list for US goods, which has already exceeded € 2.8 billion, if it will not be able to advance talks with Trump later in Washington
The European Union is coming to Washington tomorrow to negotiate a trade agreement. I have an idea for you. Both the US and the E.U. All tariffs, barriers and subsidies drop! That would finally be called Free Market and Fair Trade! Hope they do, we are ready – but they will not!
– Donald J. Trump (@realDonaldTrump) July 25, 2018
Earlier signs of US stock futures point to a similarly weak start trading session Wednesday, though the pace and tenor of trading once again dictated by the busy earnings calendar, second quarter reports from Dow Components Boeing Co. (BA), Visa Inc. (V), Coca-Cola Co. (KO) and Advanced Micro Devices (AMD), Ford Motor Co. (F ), General Motors (GM), Mattel (MAT), Northrup Grumman Corporation (NOC). Social media giant Facebook Inc. (FB) will report its gains in the second quarter at the close of trading today.
Futures contracts linked to the Dow Jones Industrial Average
Global oil prices rose for the second time in a row on Wednesday. Investors focused on fresh China stimulus as well as a report released yesterday by the American Petroleum Institute that crude oil inventories fell 3.2 million barrels a week before July 20.
Brent crude oil contracts for delivery in September, the global benchmark for prices, were rated 60 cents higher from their Tuesday closing price in New York, trading at $ 74.04 a barrel in early European trading. WTI contracts for the same month, which are more closely linked to US gasoline prices, were 33 cents higher at $ 65.85 a barrel.