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 ended mostly higher on Tuesday following a positive session on Wall Street. Hong Kong and mainland bourses rose, with Hong Kong ending around 1% higher. Japan had a strong day, while Australia, South Korea, and Taiwan saw modest gains.

• Asia bond prices fell again on Tuesday morning, pushing yields to multi-week or even multi-year highs. Japan’s 10-year yield hit over a 9-year high.

• SoftBank’s Arm Holdings filed for the biggest US IPO since 2021, with the roadshow scheduled to begin in the first week of September and pricing in the second week. They are looking to raise $10 billion. If the ARM IPO goes through at its expected valuation of ~$64 billion, it would be the 3rd largest tech IPO in history.

• The yuan is expected to have more room to depreciate to about 7.5 despite Beijing’s pushback.

• BOJ’s underlying inflation metrics strengthened further to new highs in July, with the trimmed mean rising 3.3% YoY, surpassing the prior peak of 3.1% in May.

Europe, Middle East, Africa:

• European equity markets were higher, with basic resources, real estate, and tech sectors advancing. Media, telecom, and food/beverage sectors lagged.

• BHP posted its lowest profit in three years, raised capex, and cut its dividend.

• HSBC predicted that the British Pound has peaked and will come under renewed pressure.

• The CEO of Australia LNG producer Woodside Energy, O’Neill, referred to EU gas price volatility as “irrational” but also a clear sign of a tight market.

• Italy may seek funds for the next budget from the gambling sector and banks.

The Americas:

• Zoom’s earnings beat expectations, causing a +7% rally in after-hours trading.

• Lowe’s beat expectations by $0.09, reported in-line revenues and reaffirmed its FY24 EPS guidance. The company saw a strong spring recovery and growth in Pro and online sales.

• Dick’s Sporting Goods had disappointing earnings, missing EPS, revenue, and margin estimates.

• BJ’s Wholesale beat expectations by $0.07 but missed on revenues while providing FY24 EPS guidance in-line.

• Medtronic beat expectations by $0.09 and beat on revenues, raising its FY24 EPS and organic revenue growth guidance.

• American Airlines confirmed a new collective bargaining agreement with its mainline pilots represented by the Allied Pilots Association, resulting in about a 46% higher increase in CASM (Cost Per Available Seat Mile) guidance.

The Week Ahead:

• Monday:

  • China PBOC Interest Rate Decision

• Tuesday:

  • US Existing Home Sales Change (MoM)(Jul)

• Wednesday:

  • S&P Global/CIPS Composite PMI (Aug) PREL (UK)

  • Retail Sales (MoM)(Jun) (Canada)

  • S&P Global Manufacturing PMI (Aug) PREL(US)

  • Consumer Confidence (Aug) PREL (EU)

• Thursday:

  • ECB Monetary Policy Meeting Accounts (EU)

  • Durable Goods Orders (Jul)

• Friday:

  • GFK Consumer Confidence (Aug) (UK)

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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.