Trading Tuesday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

• Asian equities showed a mixed performance on Tuesday. While Hang Seng and mainland markets retreated after an early advance, Kospi, Nikkei, and ASX advanced.

• Caixin manufacturing PMI for July was 49.2, falling below the consensus of 50.1 and the previous month’s 50.5. This put the index back into contractionary territory after showing expansion in May and June. Notably, new export orders experienced a significant decline, reaching their lowest level since September, due to subdued foreign demand.

• Data from China Real Estate Information Corp. (CRIC) revealed that the value of new home sales in China by top 100 property developers dropped by -33.1% YoY to CNY350.4B ($49B) for the second consecutive month. Sales also experienced a -33.5% MoM decline.

• Greater China stocks experienced their best month in July since January, primarily driven by Beijing’s policy support commitments.

• Japan’s unemployment rate in June slightly decreased to 2.5%, in line with expectations, following the previous month’s rate of 2.6%. However, job offers growth remained sluggish.

• South Korea witnessed a significant drop in exports, with customs exports falling by 16.5% YoY in July, marking the most substantial decline since May 2020. This figure was higher than the expected 15.0% drop.

• As winter approaches, traders are paying $200K per day to ship gas due to the scarcity of tankers.

Europe, Middle East, Africa

• European equity markets displayed lower performance, with Energy and Healthcare sectors leading, and Autos/Parts, Basic Resources, and Financial Services lagging.

• Banks had a strong Q2 performance, exemplified by HSBC’s profit more than doubling during this period.

• The final Eurozone manufacturing PMI reading remained unchanged from the flash estimate, reaching a 38-month low of 42.7, compared to the prior 43.4.

• Eurozone’s June unemployment rate was stable at a record low of 6.4%, slightly below market forecasts of 6.5%. German unemployment increased by 62,000 in July, despite a decline in the seasonally adjusted unemployment rate to 5.6%.

• Q2 earnings in the Eurozone mostly met expectations, but the STOXX 600 ex-financials surprised with a slight -1% downside.

• In the UK, earnings performance appears to be outperforming, with 40% of FTSE 350 market cap reporting earnings. Goldman Sachs noted that sales and earnings surprised by ~2% and 7% equal weighted, with the surprise being slightly stronger when excluding commodities.

• BP missed profit estimates due to weaker refining margins and trading income but increased capital return.

The Americas

• Long/short hedge funds had to unwind bets to avoid further losses following July’s market rally.

• Top active fund managers struggled to attract money from large investors as cash accounts offered the best yields in years.

• Canadian GDP rose by 0.3% in May, slightly below expectations after a 0.1% gain in April.

• Exxon Mobil is in talks with Tesla and Ford to supply lithium.

• Diamondback Energy missed profit estimates due to weaker gas prices.

The Week Ahead:

• Monday:

  • Large Retailer Sales (Japan)

  • NBS Manufacturing PMI (China)

  • Chicago Purchasing Managers Index (US)

• Tuesday:

  • Unemployment Rate (Japan)

  • Caixin Manufacturing PMI (China)

  • Unemployment Rate (EA)

  • S&P Global Manufacturing PMI (Canada)

  • ISM Manufacturing PMI (US)

• Wednesday:

  • BOJ Monetary Policy Meeting Minutes (Japan)

  • ADP Employment Change (US)

• Thursday:

  • Producer Price Index (EA)

  • Bank of England Minutes (United Kingdom)

  • BoE Governor Bailey Speech (United Kingdom)

  • Initial Jobless Claims (US)

  • S&P Global Composite PMI (US)

  • ISM Services PMI (US)

• Friday:

  • Retail Sales (EA)

  • Average Hourly Earnings (US)

  • Ivey Purchasing Managers Index (Canada)

Investment Tip of The Day

Meme of the Day

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.