Queensway Blog

News / Analysis

Finance Update – Markets Preparing for the Fed


Asia – NZ snubs HK

Chinese markets are all up this morning, including the Hang Seng at 0.6%, but the Nikkei down 0.05%.

The Yen continues down after the nation’s leading index for May increased by 0.7 points, disappointing hopes of more.

And, as New Zealand halts its extradition treaty with Hong Kong, Australia’s unemployment level reached 7.4% in June, according to the ABS, due primarily to renewed lockdowns in Victoria.

Europe – German markers improving

European markets were gloomily mixed when the Dax and AEX closed up a fraction of a per cent, the FTSE CAC and Eurostoxx down in the third per cent vicinity.

In Germany, the Business Climate index for July increased by nearly 4 points to 90.5, with expectations also surpassing expectations at 97. However, the EU’s money supply in June missed expectations with a 0.3 point increase to 9.2, resulting in a 0.15% drop in the Euro

Americas – 2 more pharmas enter last COVID leg race

With the USD down on expectations of a dovish Fed, Thursday, US markets returned to jubilation mode yesterday, the Nasdaq adding 1.67% and the Dow 0.47%, as both Pfizer and Moderna commence Phase-3 trials for their Coviod19 vaccination – the latter resulting in a 9% hike in shares.

Durable goods in June added 7,3%, half the month before, while the Dallas Fed Manufacturing Business index increased to -3 – half the previous month.

Commodities – Btc shoots above 11K

Gold briefly touched 1974 overnight before returning to the 1938 region – still above its 2011 high – all on expectations of continued – and perhaps expanded – FED dovishness towards the end of this week.

And, with Bloomberg revealing a new Chinese startup that aims to unify all blockchains under one roof, Bitcoin shot through 11k overnight, placing it above its 10 & 50 day moving averages and at a 1-year high.

Corporate – eBay & Visa report today

Samsung is up 4.32% after Intel’s (-2.2%) announcement it was ceasing to outsource processor manufacturing, due to lagging timetables in the production of its new 7-nanometer chip technology products.

Ryanair is down 3.85% after posting a 95% YoY drop in revenues, leading to a 2 cent loss per share. And Hasbro is down 7.4% missed expectations with a 12.6% drop in revenues to $860 mn, providing and EPS of 2 cents – 1/10th the expected result.

Earnings reports will be in today from eBay, Visa, 3M, Raytheon, Harley Davidson, Rockwell Automation, Amgen, Mondulez, Peugeot, Reckitt Benckiser, Yandex, Oneok, Boston Properties, Invesco, Bankia and Edison International.

Vodafone will hold a shareholders meeting.


10:00 AM GMT UK CBI Distributive Trends. BRC Shot Price Index at 11 PM
12:55 PM GMT US Redbook Index. Case-Shiller House Price Index at 1. Richmond Manufacturing Index & Consumer Confidence at 2.
08:30 PM GMT OIL API Weekly Crude Oil Inventories
01:30 AM GMT (+1) Australia CPIs

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