The Tuesday Market Minute
- Global equities are picking up as China stimulates Asia revives profits in Europe and Wall Street revive.
- The impact of the BoJ pullback on the bond market continues, with the US Treasury curve steepening ahead of the Q2 GDP report] US Dollar Steepies, Rate hike betting continues, because Trump comments on the currency mood (mood) fail.
- U.S. Stock futures point to Solid Open on Wall Street, with Alphabet rising to a new record high after a record second quarter gain.
- Active profit zone of Q2 figures from Verizon, AT & T, Harley Davidson and Eli Lily.
Global equities rallied on Tuesday, with plans to boost government spending in China to support Asian equities, and solid corporate earnings to boost markets in Europe and Wall Street, while bond markets rose in the face of rising US assets China Sales and Pullback Wobble Inspired by the Bank of Japan
China officials said on Tuesday that the government would step up its efforts to stimulate growth in the world's second-largest economy with a "more active" fiscal policy, tax cuts, and Expenditure increases to ensure that the country reaches its annual growth target of 6.7%. The decision, fueled by fears that China's economy will slow down as a result of the ongoing trade dispute with the United States, has increased inventories in Shanghai and Hong Kong and lowered the yuan to a new 1
Investors who were spared talks last week that US bond yields signal a short-term slowdown in the US economy are now focusing on the first estimate of second-quarter GDP growth of over 4.1%. could rise faster than expected rate hikes from the Federal Reserve.
Second quarter GDP figures in the US remain strongest despite seasonal adjustments. Against this background, @Knightleyeco expects growth of 4% on Friday, double the rate for the first quarter and the fastest pace in nearly four years. Https://t.co/TWTp3w8p5n
– ING Economics (@ING_Economics) July 24, 2018
Economic strength is also underlined by the robust performance of the current reporting season. Estimates suggest that US companies will increase their joint profit by 22% over the same period last year, a figure that would be one of the strongest quarters in a decade and the first back-to-back run of 20% plus.
The healthy outlook has US futures on the rise this morning, with contracts linked to the Dow Jones Industrial Average
than expected second quarter earnings report by Alphabet Inc. (GOOGL), will help boost the Nasdaq composite by around 62 Points at the beginning of trading, futures imply, with shares in Google's parent company expected to open at a record high of 1,254.75 with a market value of 870
Several US blue chips are now in the busiest week of the season gains from the second quarter 160 companies will report three-month figures and short-term prospects. Today's earnings include 3 million (MMM), Harley Davidson (HOG), Verizon (VZ), AT & T (T), Kimberly-Clark (KMB), Lockheed Martin (LMT) and United Technologies (UTX).
European Equities The Stoxx 600 Index gained 0.33% in the first few minutes of trading, led by an increase of 0.41% for the DAX in Germany and 0.21% for the FTSE 100 in London.
PSA Groupe SA (19659009) PUGOY) fell early on when the French carmaker increased 12% at the opening bell in Paris, after spending much more than expected in the first quarter at € 1.48bn in the second quarter , Vauxhall, GM's former loss-of-money department, was bought by PSA last year for just € 22.
In Asia, the Japanese Nikkei 225 recovered 0.51% from yesterday's slump, although factory activity in the world's third-largest economy dropped to an 18-month low. The regional MSCI Asia ex-Japan Index closed the session at 0.6%, while China's Shanghai Composite and Hong Kong's Hang Seng Benchmark both gained 1.6%.
Shanghai Composite rose 1.6% to 2,905, trading volume reached 3-month high, supported by news from the State Council on Monday that indicated easing monetary policy to support the economy  shares related to the Infrastructure construction increased strongly to more stimulation measures. pic.twitter.com/pP9TpB7tOP
– YUAN TALKS (@YuanTalks) July 24, 2018
Away from stocks, the US dollar index, which is the greenback against a basket of six global Currencies rating was little changed on Monday at 94.68, but declined 1% from its one-year high last week following President Donald Trump's comments that his strength penalized the US economy in export markets.
The recent US Treasury yields, which have led to a steepening of the so-called yield curve – another indication that the difference between 2-year and 10-year yields has increased – suggest that the US Treasury bond yields are rising Statements by the president had little impact on the market expectations of the Fed's rate hikes.
– Jeroen Blokland (@jsblokland) July 24, 2018
Global oil prices were softer in early Europe Although both the Brent and WTI benchmarks barely changed from their Monday closures, as investors calibrated the impact of a strike in the North Sea by 40 workers on a platform of the French Total SA TOT and the bubbling war-of-words between Washington and Tehran, as the earlier attempts to limit Iran's ability to export crude oil in the face of US sanctions.
Brent futures contracts for delivery in September were 10 cents lower than closed on Monday, trading at $ 72.98 a barrel in early European trading, while WTI contracts fell 12 cents lower in the same month at 67, 77 USD per barrel.