Asia – US-China agree to more flights
Chinese equities are all down this morning led by the Shenzhen Composite’s 1.05% drop. The Hang Seng is down 0.3%, but the Nikkei is up 0.33% as Japan’s Trade surplus for July expanded to 11.6 bn Yen despite a disappointing 7.6% contraction in machinery orders.
The Yen is down 0.17% this morning, though, due to double-digit slumps in both imports (-22%) and exports (-19%), especially with auto exports to the US disastrously down.
Meanwhile, AP reports that the US and China have agreed to double the number of plights between the two countries to 8 per week.
Europe – UK data thrills
European indices were red across the board upon yesterday’s close, Denmark’s OMX leading with a 1.48% drop, the FTSE losing 0.83% and the Dax 0.3%.
The pound this morning reacted favourably (20 pips in as many minutes) after reporting a better than expected 1.6% increase in July’s retail prices and a 4-tick increase in consumer inflation to 1% YoY. The core PPI, however, contracted by 0.1%, as expected.
The British Chambers of Commerce yesterday reported that 38% of businesses reported an increase in revenues while the same number had reported a drop and suggested an increase in incentives and a cut in employer social security contributions.
Americas – OMC minutes bode bad
US index futures are marginally up this morning after closing mixed yesterday, the Nasdaq adding another 0.73% and the Dow down 0.24% – primarily on COVID concerns.
The dollar index gained some 30 cents traction after July building permits, and housing starts added a better-than-expected 1.49 mn units a piece and the Redbook index for August improved to -2.8% YoY. Through the session, the currency experienced a 27-month low due to FED easing programmes.
Ahead of tonight’s FOMC minutes, traders are expecting forward guidance despite lack of action in July on rising COVID-inflicted economic woes and inaction on relief funds efforts.
Commodities – OPEC+ meeting today
Oil yesterday gained a dollar 30 just before the API released a further 4.264-million-barrel drawdown from Cushing-held crude inventories.
Corporate – NVIDIA reports
Walmart was down 0.66%, continuing south after hours despite its 5.6% increase YoY in Q2 revenues to $137.7, translating into a $2.27 EPS – an 80% increase YoY.
And Home Depot was down 1.12% after producing a $4.02 EPS (up 26.8% YoY) on $38.1 bn revenues – a 23.4% increase.
Ahead today, KGHM, Fortum and NVIDIA report earnings.
