August 8, 2019

Daily Market Review – Thursday, August 8, 2019

Daily Market Review – Thursday, August 8, 2019

Asia

Asian indexes this morning are confirming an upward close, with Chinese benchmarks up above the 1% rate and Hong Kong & Japan in the ½ % region. China’s trade surplus narrowed in July to $45 bn on a 5.6% contraction in imports and a 3.3% increase in exports – its best performance in 5 months, despite US pressures. With talks between the factions expected to reconvene in September, former foreign trade vice-minister Wei Jianguo said that “the meeting could ease the tensions,” with US economic adviser Larry Kudlow echoing the sentiment when interviewed Tuesday by NBC. Meanwhile, the People’s Bank of China has allowed the Yuan to rise slightly against the dollar, while further south, Korea has agreed to delay removing Japan from its list of fast-track export countries, and – in return – Japan has lifted restrictions on some semiconductor-manufacturing materials to Seoul. In Hong Kong, protests take their toll, as national carrier Cathay Pacific reports a significant drop in incoming traffic. Retail sales in this eternal shoppers’ haven have dropped 6.7% YoY and many countries have issued travel alerts.

Europe

European indexes managed to shrug off some gloom yesterday, all closing positive led by the Dax’s 0.71% gain. UK housing took a beating in July, the Halifax price index down 0.2% MoM, or -9%, based on the RICS index – the 2nd down-trending month in a row. Trade and manufacturing data from around the continent was dismal. UK Foreign Minister Dominic Raab yesterday met with his UK counterpart Mike Pompeo and Nat’l Security Adviser John Bolton to discuss a post-Brexit free trade deal.

US

US indexes straddled the 0-line yesterday, the Nasdaq gaining a third of a percent, the Dow losing 0.09%. As the war continues, MarketWatch yesterday reported a 5% increase in bankruptcies, while the Challenger Jobs organization is reporting a 25% increase in CEOs leaving their jobs. Yields on the US 10-year note dropped to 1.67% at yesterday’s auction, and consumer credit in June fell over $3 bn to $14.6 bn.

Commodities

Continuing market fears pushed gold above the 1500 mark yesterday, where it is currently forming a pendant consolidating towards 11512. Goldman Sachs analysts quoted on TeleTrader believe that the asset will hit 1600 within the next 6 months. Crude oil unexpectedly lost $3 on the barrel after the EIA reported a 2.4 mB increase in inventories. Reuters reports a 14% increase in Chinese oil imports as that country stokes up on trade-war-priced commodities. And Bitcoin is doing its best to confirm support at just under the 12K mark but refuses to pass it, for now.

Corporate

Despite sector-wide falling data, Mercedes father-company Daimler announced a 12.7% increase in sales YoY in July. Deutsche Telekom this morning reported a 2.9% increase in revenues for Q2, as it readies to complete its Sprint takeover and the merging of it with its own US subsidiary – T-Mobile. UniCredito beat earnings expectations but on a 4.5% contraction in revenues YoY. And Teva shares are up 4% after earnings beat expectations by 2 cents on revenues that contracted 7.7%

Economic Calendar

Today’s Top Economic Events
TIME/PLACE RELEASE/DATA
08:00 AM GMT – EU Economic Bulletin
12:30 PM GMT – US Continuing & Initial Jobless Claims (Aug 2). Wholesale Inventories at 14:00, and 4-Week & 30-Year Bond Auctions at 15:30 and 17:00, respectively
12:30 PM GMT – Canada New Housing Price Index (Jun)
22:45 PM GMT – NZ Visitor Arrivals (Jun)
23:50 PM GMT – Japan Preliminary Gross Domestic Product (Q2)
01:30 AM GMT (+1) – China Consumer & Producer Price Indexes (Jul)
01:30 AM GMT (+1) – Australia Monetary Policy Statement

For more, visit our Economic Calendar