Tuesday July 11, 2023: $188.08 -($0.53) -(0.28%)
Jul 11, 2023 1:10:03 GMT -8
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Post by Dave on Jul 11, 2023 1:10:03 GMT -8
Good morning. We have a green pre-market this morning at +0.06% at this moment.
China Support Measures Buoy Stocks to Commodities: Markets Wrap
Tuesday, July 11
NFIB Business Optimism Index (Jun)
IBD/TIPP Economic Optimism Index (Jul)
Euro Area ZEW Economic Sentiment Index (Jul)
NFIB Business Optimism Index (Jun)
IBD/TIPP Economic Optimism Index (Jul)
Euro Area ZEW Economic Sentiment Index (Jul)
Luxury-goods makers were among the biggest gainers in Europe after China announced measures to support its ailing real estate sector and signaled there may be more stimulus on the way. LVMH gained more than 1% while L’Oreal SA and Richemont also rose. Daimler Truck Holding AG jumped as much as 3.1% after announcing a stock buyback.
Futures on the S&P 500 and Nasdaq 100 struggled build on Monday’s modest gains after Federal Reserve officials reiterated the need to tighten further his year. Treasury yields fell and a gauge of the dollar declined for a third day.
While central bank officials in Europe and the US are increasingly suggesting they’ve reached a turning point in the battle against inflation, they’re also warning that higher rates for longer are needed to ensure price stability. That’s a mixed blessing for stock bulls who have had to endure a disappointing start to the second half after stellar gains in the first six months of the year. The approaching second-quarter earnings season will give them more food for thought.
“US equity markets have priced in a soft landing, or a more friendly recession, but actually the risk is for the recession to come in harder than expected,” Cecilia Chan, chief investment officer for APAC at HSBC Asset Management, said on Bloomberg TV. “For developed markets we expect a choppy-waters kind of scenario where it will be more difficult from now on, and we are more conscious of valuations that are on the expensive side.”
US consumer-price data on Wednesday will give further insight into outlook for prices and interest rates. Most Fed policymakers expect to increase rates by a further half percentage point by the end of the year, according to projections released after their June gathering.
The ECB, meanwhile, is all but certain to raise rates by a quarter point on July 27. Policymakers are debating whether to raise borrowing costs again at their subsequent meeting in September.
Futures on the S&P 500 and Nasdaq 100 struggled build on Monday’s modest gains after Federal Reserve officials reiterated the need to tighten further his year. Treasury yields fell and a gauge of the dollar declined for a third day.
While central bank officials in Europe and the US are increasingly suggesting they’ve reached a turning point in the battle against inflation, they’re also warning that higher rates for longer are needed to ensure price stability. That’s a mixed blessing for stock bulls who have had to endure a disappointing start to the second half after stellar gains in the first six months of the year. The approaching second-quarter earnings season will give them more food for thought.
“US equity markets have priced in a soft landing, or a more friendly recession, but actually the risk is for the recession to come in harder than expected,” Cecilia Chan, chief investment officer for APAC at HSBC Asset Management, said on Bloomberg TV. “For developed markets we expect a choppy-waters kind of scenario where it will be more difficult from now on, and we are more conscious of valuations that are on the expensive side.”
US consumer-price data on Wednesday will give further insight into outlook for prices and interest rates. Most Fed policymakers expect to increase rates by a further half percentage point by the end of the year, according to projections released after their June gathering.
The ECB, meanwhile, is all but certain to raise rates by a quarter point on July 27. Policymakers are debating whether to raise borrowing costs again at their subsequent meeting in September.