Opening Bell: Deluge Of Earnings Beats Helps Stocks Brush Off China, Iran Risk
Pinchas Cohen | Jul 23, 2019 09:07
- Upbeat earnings from Coca-Cola (NYSE:KO), Banco Santander (MC:SAN), UBS push U.S. futures, European shares higher
- Pound fluctuates as hard-Brexiter Boris Johnson replaces Theresa May as new British prime minister
- Hopes for upcoming U.S.-China trade talks buoy Asian sentiment, offset Mideast risk
- h2 Key Events/h2
- Facebook (NASDAQ:FB) (NASDAQ:FB ) is reporting on Wednesday after market close, with analysts expecting the social media giant could show that growth was unhurt by recent reputational challenges.
- The European Central Bank will unveil its press conference on Thursday. Economists widely expect officials to signal their readiness to cut interest rates and potentially broaden stimulus. Some see the chance of an immediate rate cut.
Futures on the NASDAQ 100 traded higher this morning on hopes that some corporate heavyweights would deliver solid results, dissipating worries over the effect of a prolonged trade war on global growth prospects.
Strong earnings beats from SNAP ) set to report after market close.
A deal sealed by U.S. Congress yesterday to suspend the country's debt ceiling until mid-2021 also drove futures higher.
European shares on the SAN ). The pan-European index, however, found resistance by last week’s highs, after falling below its short-term uptrend line since June 3. Technically, the index's price is sandwiched between the medium-term downtrend and the long-term uptrend, with the 200-week MA adding downward pressure.
In the earlier Asian session, stocks advanced on U.S.-China trade negotiations optimism after U.S. Treasury Secretary Steven Mnuchin said trade envoys from the two sides will finally resume face-to-face meetings, helping to offset the market impact of heightened Persian Gulf tensions. Japan’s Energy (0.46%), which climbed on Mideast risk after Iran sentenced 17 men to death accusing them of being CIA spies.
DXY Daily Chart
While Treasurys were steady, the dollar climbed for the third day after bouncing for the second time off the 200 DMA, breaching the upper boundary of a short-term falling channel since the May top.
The pound , conversely, fell for a third day before rebounding mildly as former Foreign Secretary Boris Johnson, a hard-Brexit advocate, was formally named prime minister, opening a new phase of uncertainty over negotiations with EU leaders.
WTI Daily Chart
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BA ).
Stocks
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Canada’s S&P/TSX Composite closed up 0.2 percent Monday.
- The U.K.’s FTSE 100 rose 0.5% to the highest in a week.
- The MSCI Asia Pacific Index climbed 0.3%.
- The MSCI Emerging Market Index increased 0.1%.
Currencies
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The Canadian loonie was down 0.22 percent against the U.S. greenback early Tuesday, trading at 0.7604.
- The U.S. Dollar Index gained 0.2% to the highest in two weeks and near a 6-week high.
- The British pound dropped 0.3% to $1.2435.
- The Japanese yen fell 0.2% to 108.13 per dollar, the weakest in a week.
- The euro slid 0.2% to $1.1189, the weakest in more than seven weeks.
Bonds
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Canada’s 10-year yield was down early Tuesday at 1.455, a 2.09-percent decrease.
- The yield on 10-year Treasurys rose one basis point to 2.05%.
- Germany’s 10-year yield gained less than one basis point to -0.34%, the first advance in a week.
- Britain’s 10-year yield was unchanged at 0.708% to the lowest in almost three weeks.
Commodities
- paramount for the yellow metal's price direction .
- West Texas Intermediate crude increased 0.2% to $56.32 a barrel.
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