The S&P 500 Futures try to recover as they turned sharply lower in the final trading hour yesterday. Investors were discouraged by California's action to roll back its reopening plans due to an uptick in coronavirus cases.
Later today, the U.S. Labor Department will release June CPI (+0.6% on year expected).
European indices are on the downside. The U.K. Office for National Statistics has reported May GDP at +1.8% (vs +5.0% on month expected), industrial production at +6.0% on month (as expected), manufacturing production at +8.4% (vs +8.0% on month expected) and trade balance at 4.3 billion pounds (vs 800 million pounds deficit expected). ZEW survey results of July were released for Germany at -80.9 for current situation vs -65.0 expected, investment confidence was published at 59.3 vs 60 expected. The German Federal Statistical Office has posted final readings of June CPI at +0.6% (vs +0.9% on year expected). The European Commission has reported May industrial production at +12.4% (vs +15.0% on month expected).
Asian indices all ended in the red. This morning, official data showed that China's June exports grew 4.3% on year in yuan terms (+3.5% expected) and imports rose 6.2% (-4.7% expected).
WTI Crude Oil futures remain on the downside after reports that major oil-producing countries may ease output curbs in view of improving demand.
Gold declined 2.58 dollars (-0.14%) to 1800.18 dollars.
U.K GDP disappointed at +1.8% on month in May, vs +5.5% expected. U.K. is on track for largest decline in annual GDP for 300 years.
GBP/USD fell 35pips to 1.252 the day's range was 1.2507 - 1.2563 compared to 1.2551 - 1.2666 the previous session.
U.S. Equity Snapshot
JPMorgan (JPM), the largest financial services and retail bank in the U.S, reported second quarter adjusted revenue up 14% from a year earlier to 33.82 billion dollars, above estimates. EPS for the second quarter is down to 1.38 dollar from 2.82 dollars a year earlier.
Source: TradingView, Gain Capital
Fastenal (FAST), a construction supplies distributor, disclosed second quarter net sales up 10% from a year earlier to 1.51 billion dollars, above estimates. EPS for the second quarter is up to 0.42 dollar from 0.36 dollar a year earlier.
Netflix (NFLX), the video streaming service, was downgraded from Buy to Neutral at UBS.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.