Asia Market News
Stocks continued to rise higher as better-than-expected economic data from China lifted risk sentiment that was already buoyant after record highs on Wall Street. The Nikkei was up 1.2% at 16,575.63. China stocks were moderately higher, with the CSI 300 index up 0.1% and the Shanghai Composite Index rising 0.2%. China’s economy grew 6.7 percent in the second quarter from a year earlier, steady from the first quarter and slightly better than expected as the government stepped up efforts to stabilise growth in the world’s second-largest economy.
Currency Market News
The yen weakened after China’s second-quarter gross domestic product and June activity data pointed to stabilisation in China’s economy and bolstered risk sentiment. USD/JPY rose 0.9% to 106.27 yen. GBP/USD gained 1% to $1.3474, staying firm after the Bank of England kept interest rates on hold on Thursday.
Commodity Market News
Crude oil futures fell in Asian trading on Friday on renewed concerns about a global oil glut, but losses were capped by slightly better than expected Chinese economic data reflecting government efforts to stabilise growth. Brent crude futures were down 16 cents at $47.21 a barrel. U.S. West Texas Intermediate futures were down 18 cents at $45.50 a barrel having earlier fallen to $45.05. Spot gold eased 0.4% to $1,328.78 per ounce.
US Market News
Financial stocks led the S&P 500 and the Dow industrials to record highs on Thursday after JPMorgan’s strong quarterly results, while upbeat economic data confirmed to investors that the current rally on Wall Street can continue. The Dow Jones industrial average rose 0.73%, to 18,506.41, the S&P 500 gained 0.53%, to 2,163.75. JPMorgan (NYSE:JPM) reported a much better-than-expected rise in quarterly revenue, JPMorgan shares rose 1.5%.
US Equity Earnings
- Blackrock (NYSE:BLK) – Q2 Adj. EPS USD 4.78 vs. Exp. USD 4.77, Q2 revenue USD 2.80bln vs. Exp. USD 2.79bln and Q2 AUM USD 4.89trl.
- Delta Air Lines (NYSE:DAL) -Q2 Adj. EPS USD 1.47 vs. Exp. USD 1.48 and Q2 revenue USD 10.4bln vs. Exp. USD 10.5bln.
- JPMorgan (JPM) – Q2 Adj. EPS USD 1.46 vs. Exp. USD 1.43 and Q2 Adj. revenue USD 25.2bln vs Exp. USD 24.42bln. Q2 NIM 2.25% vs Exp. 2.31%, Q2 Investment Banking Revenue USD 1.49bln vs. Exp. USD 1.49bln and Q2 Basel III CET 1 ratio 11.9% vs Exp. 11.8%.
- CSX (NASDAQ:CSX) – Q2 EPS. USD 0.47 vs Exp. EPS USD 0.45 and Q2 revenue declined 12% to USD 2.7bln vs. Exp. USD 2.69bln. The Co. forecast a capital investment of USD 2.7bln in 2016 and stated that Q3 earnings is expected to decline.
- Yum! Brands (NYSE:YUM) – Q2 Adj. EPS USD 0.75 vs Exp. EPS USD 0.74 and Q2 revenue USD 3.01bln vs. Exp. USD 3.10bln. The Co. increased their FY core operating profit growth forecast at least +14% vs. Prev. +12%, furthermore, the Co. reported China KFC comp. sales +3% vs Exp. +3% and China Pizza Hut comp. sales -11% vs. Exp. -7.8%.
Bond Market News
The benchmark Japanese government bond yield rose to two-week highs on Friday as broader investor risk appetite continued to improve, prompting a rally in Tokyo shares and dimming the allure of safe-haven debt. The 10-year JGB yield was up 3 basis points at minus 0.235 percent, its highest since July 1. The 30-year JGB yield climbed 3.5 basis points to 0.175 percent, a three-week high last touched during the Brexit referendum.
Economic Calendar
- 13:00 GMT+1 UK BOE Gov Carney Speaks
- 13:30 GMT+1 CAD Manufacturing Sales m/m
- 13:30 GMT+1 US CPI m/m
- 13:30 GMT+1 US Core CPI m/m
- 13:30 GMT+1 US Core Retail Sales m/m
- 13:30 GMT+1 US Retail Sales m/m
- 15:00 GMT+1 US Prelim UoM Consumer Sentiment
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