Investors turn their attention to earnings season :: InvestMacro

by just forex

US stock indexes rose on Tuesday as investors temporarily put recession fears aside and plunged into reporting season. Investors are taking a closer look at the factors, how companies are grappling with rising costs and persistent supply problems, and how consumer behavior is changing amid ever-high inflation. With the stock market closed, the Dow Jones (US30) was up 2.43%, and the S&P 500 (US500) was up 2.76%. The Nasdaq Tech Index (US100) jumped 3.11% yesterday.

The number of new homes in the United States fell in June to its lowest level in more than a year as demand fell due to the pandemic boom. Rising mortgage rates and rising home prices have sidelined many potential buyers.

Twitter (TWTR) shares jumped nearly 3% after a Delaware judge in Chancery said the social network could speed up the lawsuit against Elon Musk, and set a trial date in October. Shares of Lockheed Martin (LMT) fell 0.7 percent after the military contractor said sales of combat aircraft slumped and cut its revenue and profit targets for 2022. Shares of Netflix rose 7% in the report, despite the company losing 970,000 subscribers in the last quarter. . But expectations for the third quarter are that the company will return to customer growth and also plans to launch an ad-supported option. Tesla (TSLA), ASML (ASML), Abbott Labs (ABT), Biogen (BIIB), Baker Hughes (BKR) and United Airlines Holdings (UAL) are all reporting today.

Most stock markets in Europe rose on Tuesday. The German DAX (DE30) is up 2.69% yesterday, the French CAC 40 (FR40) is up 1.79%, the Spanish IBEX 35 (ES35) is up 2.03% and the UK FTSE 100 (UK100) closed 1.01% higher.

The annual inflation rate in the eurozone in June 2022 was 8.6%, compared to 8.1% in May. A year ago, the rate was 1.9%. The lowest annual rates were recorded in Malta (6.1%), France (6.5%) and Finland (8.1%). Estonia (22.0%), Lithuania (20.5%) and Latvia (19.2%) had the highest annual rates. European Central Bank policy makers are considering raising interest rates by more than 50 basis points at their meeting on Thursday to combat record high inflation. The Euro is rising based on these expectations.

Investors are also watching the political drama in Rome as the Italian government is mired in uncertainty over whether Mario Draghi will remain prime minister.

Nord Stream 1 resumes gas flows Thursday after annual maintenance but at a low level.

In the oil market, traders continue to balance limited inventories against the possibility of a recession that has brought the price back to $100 a barrel. Investors may see oil fall further if the economic outlook continues to deteriorate or if Saudi Arabia agrees to produce more oil. On the other hand, the summer season is in full swing, and there is still a demand deficit. These factors prevent the price from falling.

In metals, everything is the same. Gold and silver are inversely related to the dollar index and US government bond yields, which in turn are rising on the back of tighter monetary policy from the Federal Reserve. There are no fundamental reasons to buy now, and while prices are going up, they won’t. Currently, gold and silver can only be bought for speculative purposes for short periods.

Asian stocks are mostly rising when the market opens today. Japan’s Nikkei 225 (JP225) is up 2.40% since the opening, Hong Kong’s Hang Seng (HK50) is up 1.74%, while Australia’s S&P/ASX 200 (AU200) is up 1.58%.

RBA Governor Lowe said today that inflation in Australia will reach 6% or 7% this year, so the central bank will have to keep raising rates.

The Bank of Japan will also judge policy on Thursday, but no changes are expected to its ultra-soft stance.

China and the European Union agreed to work together to enhance economic and trade cooperation and jointly tackle the challenges of the global economy. The two sides reached several conclusions and consensus on macroeconomic policy coordination, cooperation in production and supply chains, WTO reform, wider market opening, implementation of the China-EU Geographical Indications Agreement, and regulatory cooperation.

S&P 500 (F) (US500) 3,936.69 +105.84 (+2.76%)

Dow Jones (US 30) 31827.05 +754.44 (+2.43%)

DAX (DE40) 13308.41 +348.60 (+2.69%)

FTSE 100 (UK100) 7,296.28 +73.04 (+ 1.01%)

US dollar index 106.71 −0.65 (−0.61%)

Important events for today:

  • – Reserve Bank of Australia Governor Lowe speaking at 02:10 (GMT +3);
  • – British CPI (m / m) at 09:00 (GMT + 3);
  • – Canadian CPI (m / m) at 15:30 (GMT + 3);
  • – US Existing Home Sales (month / month) at 17:00 (GMT + 3);
  • – US crude oil reserves (w / s) at 17:30 (GMT +3).

by just forex

This article reflects a personal opinion and should not be construed as investment advice and/or a continuing offer and/or solicitation to carry out financial transactions and/or guarantee and/or anticipation of future events.

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