Think Thursday

Market Data

Local

Global

*Data as of 6pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

• Asia equities ended mostly higher Thursday. Hong Kong was higher again with stocks led by EV plays on Volkswagen-XPeng news, mainland markets turned red in the afternoon session. Gains for Japan, South Korea, and Taipei; Australia also seeing another strong day.

• US Treasury Undersecretary Shambaugh told the Senate Foreign Relations Committee the Biden administration will not hesitate to take targeted actions against China to secure national security interests.

• South Korea's tax code revisions revealed Thursday focused on tax cuts for businesses and easing financial burdens in households

• Malaysia PM Anwar Ibrahim unveiled a plan Thursday that targets resetting the country's growth trajectory with the aim of increasing incomes and female participation in the workforce.

• Volkswagen invests $700M in China's Xpeng for nearly 5% stake

• US interest rate hikes devastate Taiwan's $1T life insurance sector

Europe, Middle East, Africa

• European equity markets are higher. EURO STOXX 50 once again above the 4,400 level after a brief dip on Monday and Tuesday, aided by peak-Fed bets and soothing comments by Fed Chair Powell on Wednesday

• The ECB is set to hike rates for the ninth time by 25 bps to take its key deposit rate to 3.75%.

• HSBC analysts noted 49% of EU companies' earnings have so far beaten estimates, below the long-term average of 55%. Europe is on track for the worst earnings season since Q1 2020.

• Shell and Total Energies both posted disappointing Q2 updates. Shell revealed a big fall in Q2 citing declining energy prices. TotalEnergies posted a drop in Q2 net income citing lower natural gas prices and slimmer refining margins in Europe.

• The majority of UK Chancellor Hunt's Economic Advisory Council is worried the BoE may raise rates too much and push the UK into an unnecessary recession.

The Americas

• McDonald's beats by $0.39, beats on revs; US comps increased +10.3%; International comps +14%, led by China

• Honeywell beats by $0.02, reports revs in-line; guides FY23 EPS in-line, revs in-line

• Crocs beat by $0.61, beats on revs; guides Q3 EPS in-line, revs below consensus; raises FY23 EPS above consensus, revs in-line

• Carrier Global beats by $0.02, beats on revs; raises FY23 EPS and revenue guidance, still inline

• Textron beats by $0.25, reports revs in-line; raises FY23 EPS guidance above consensus; announces buyback

• Northrop Grumman beats by $0.01, beats on revs; guides FY23 EPS in-line, raises revs mostly above consensus

• Keurig Dr. Pepper beats by $0.02, beats on revs; reaffirms FY23 EPS guidance, guides FY23 revs in-line

• Bristol-Myers misses by $0.23, misses on revs; lowers FY23 EPS guidance; announces $4 billion accelerated share repurchase agreement; reaffirms 2025 targets

The Week Ahead:

• Monday:

• Tuesday:

  • US Consumer confidence came in at 117; est: 112 (2-year high).

  • House Price Index

• Wednesday:

  • US Federal Reserve raises the benchmark rate to .25bps and is now at a 22-year high.

  • US new home sales come in at 697k; est: 725k

• Thursday:

  • Initial Jobless Claims

• Friday:

  • Core PCE Price Index YoY

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Disclaimer: The information contained in this report is intended for informational purposes only and should not be considered as investment advice. The information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.