- Ahead of the US session, AUD was the strongest on CPI beat and EUR was among the weakest despite mixed-bag Eurozone data.
- Stocks in Europe still unable to find their feet after yesterday’s sell-off but were coming off their worst levels at the time of this writing.
- Gold was attempting to rise for the fourth day amid renewed weakness for government bond yields, and crude oil was in consolidation mode after yesterday’s rally and ahead of US oil inventories data later on.
- Sentiment remains cagey as investors weigh the impact of today’s positive earnings and mixed economic data against a potential rate cut from the Fed later on. There is growing uncertainty that there will be a breakthrough in US-China trade talks after Trump said the “problem with China [is that] they just don't come through" and "always changes the deal to their benefit."
- Eurozone second quarter GDP was in light at +0.2%, a slowdown from +0.4% in Q1. There was good news from Germany for a change: retail sales grew by a solid 3.5% month over month compared to a 0.5% decline expected.
- Eurozone CPI was a tad higher than expected at 1.1% y/y versus 1.0% expected, but down from 1.2% in the previous month. This was not unexpected as German CPI had already come in ahead of expectations the day before. Eurozone core CPI was weaker than anticipated at 0.9%, slowing noticeably from 1.1% previously.
- Lloyds shares slid 5% after taking a £500m PPI provision, while Next shares jumped 8% after the retailer lifted its sales growth forecast.
- European earnings are also coming in thick and fast now: Airbus beat earnings expectations, while L’Oreal said sales in North American slumped even if overall growth was the best in a decade. Meanwhile the major European banks reporting their results all beat expectations including Credit Suisse, BNP Paribas and BBVA.
- Apple shares rose +4% in afterhours trading last night as revenues topped expectations, although less than half of the group’s sales were generated from its flagship iPhone sales for the first time since 2012. This morning GE reported disappointing results, but shares rose 5% pre-market as the company lifted its EPS forecast.
- The focus will now turn to the Federal Reserve’s policy decision, due at 19:00 BST with the press conference half an hour later at 19:30 BST.
- Ahead of this, we will have US ADP private sector payrolls report and oil inventories among a handful of data releases left for the remainder of today’s session:
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.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX 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), StoneX Financial 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 StoneX Financial 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 StoneX Financial 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.
StoneX Financial 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.