Global Markets Weekly Report
Summary of the Past Week
US & NORTH AMERICAN Market Weekly Snapshot
Futures on major US indices closed in positive territory for the week. S&P 500 and Nasdaq 100 futures added 1.5% and 2.2% this week. Dow Jones futures edged up 0.04% for the week.
In the Cash Markets, the S&P 500 and the DJIA added 0.74% and 0.19% respectively on Friday. The S&P 500 posted a record close (3025.86) on Friday. The Nasdaq Composite rose 1.11% to end the trading day at 8,330.21, before hitting an all-time high of 8,339.64 earlier in the session.
U.S. equities advanced on Friday after strong earnings from tech giants and a better-than-expected GDP data.
According to market sources, so far more than 40% of S&P 500 companies have reported their quarterly earnings. Of those, 76.4% have reported strong quarterly results.
On the data front, the advance reading of the US GDP for the second quarter was released on Friday. The QoQ rate of change in the GDP was +2.1%. The GDP growth was above the market expectation of 1.8%.
In news related to Oil Markets, the Baker Hughes Oil Rig Count released on Friday came in at 776 for the week ended 26th July. The Oil Rig Count was 779 in the previous week.
Core Durable Goods Orders for June released on Thursday rose 1.2% on a month-on-month basis. Orders growth was above the consensus estimates of 0.2%.
In addition, Initial Jobless Claims also released on Thursday fell to 206K in the week ended 20th July from 216K in the week prior. Claims figure was also below the market expectation of 220K.
The EIA said in a weekly report on Wednesday that U.S. commercial crude oil inventories fell by 10.835 million barrels for the week ended 19th July. The markets had expected that the EIA would report a 4.011 million barrel decline in US crude inventories for the week. Previously, the EIA reported that U.S. crude inventories dropped by 3.116 million barrels for the week ended July 12.
On the economic front, New Home Sales for June released on Wednesday came in at 646K. Sales were below the market expectation of 660K.
The API reported on Tuesday that U.S. crude inventories fell by 10.961 million barrels for the week ended July 19. Previously, the API reported that U.S. crude supplies dropped by 1.401 million barrels for the week ended 12th July.
Existing Home Sales for June also out on Tuesday came in at 5.27M. Sales were below the market expectation of 5.35M.
European & Asian-Pacific Weekly Markets Snapshot
Futures on major European indices closed higher for the week. DAX 30 and CAC 40 futures rose more than 1% for the week.
European shares closed in positive territory on Friday, buoyed by strong earnings reports and after the European Central bank hinted that it could lower borrowing costs to tackle a slowdown in the Eurozone.
On the data front, the German Import Price Index (MoM) for June released on Friday came in at -1.4%. The index change was below the market expectation of a fall of 0.8%.
In addition, the French PPI (MoM) for June released on Friday came in at -0.5%. The PPI change was below the market expectation of a fall of 0.2%.
The German Ifo Business Climate Index for July released on Thursday came in at 95.7. The index reading was below the market expectation of 97.1.
In addition, the German Business Expectations for July also out on Thursday came in at 92.2. The index reading was below the consensus estimates of 94.0.
The preliminary reading of the German Manufacturing PMI for July released on Wednesday came in at 43.1. The PMI reading was below the market expectation of 45.1.
In addition, the preliminary reading of the European Manufacturing PMI for July also out on Wednesday came in at 46.4. The PMI reading was below the consensus estimates of 47.6.
Futures on major Asia-Pacific indices closed mostly in Positive territory for the week. Nikkei 225 and SPI 200 futures rose 1.31% and 1.93% respectively for the week. On the other hand, Hang Seng futures lost 1.42% for the week.
In the cash markets, the Shanghai Composite Index advanced 0.7% for the week.
Asia-Pacific stocks mostly closed in negative territory on the last trading day of the week. On the economic front, Tokyo Core CPI (YoY) for July released on Friday came in at 0.9%. The CPI growth was above the consensus estimates of 0.8%.
Wednesday & Monday
South Korea on Wednesday asked Japan to scrap its plan to remove the former from its list of countries that face minimum trade restrictions.
On the economic front, the preliminary reading of the Japanese Manufacturing PMI for July released on Wednesday came in at 49.6. The PMI reading was below the market expectation of 49.7.
In addition, the preliminary reading of the Australian Manufacturing PMI for July also out on Wednesday came in at 51.4. The PMI reading was below the market expectation of 52.8.
China announced on Monday that it will slap anti-dumping duties on some stainless steel imported from the European Union, South Korea, Indonesia, and Japan.
WEEKLY FOREX UPDATE
The Pound fell on Friday after the European Commission President told U.K.’s new PM that a deal by former Britain’s PM was the best and the only Brexit agreement. The British currency this week posted its twelfth straight weekly loss against the euro.
The U.S. dollar hit two-month highs on Friday, as better-than-expected U.S. GDP data did not change the view the central bank would soon cut rates for the first time in a decade.
The U.S. dollar rose on Tuesday against a basket of currencies after President Trump and congressional leaders agreed on Monday on a two-year extension of the debt limit.
The New Zealand dollar dropped on Tuesday after reports disclosed that the country’s central bank is refreshing its strategies for unconventional monetary policy.
WEEKLY COMMODITY MARKET UPDATE
Gold prices advanced on Friday as soft U.S. inflation numbers offset better-than-expected U.S. GDP data that kept bets alive for an imminent interest rate cut. The metal posted a first weekly drop in three. The bullion lost 0.45% for the week. The bullion dropped to a one-week low on Tuesday as a strong dollar counterbalanced weak U.S. economic data, and investors awaited clearer signals on the U.S. central bank’s trajectory for interest rates.
Silver prices inched down on Friday to end the week at $16.325 an ounce. The metal rose 1.08% for the week and recorded a third straight week of gains. Silver has risen around 16% since a near six-month low reached at the end of May.
Crude Oil prices gained on Friday after better-than-expected U.S. second-quarter economic growth brightened the oil demand outlook and fears over the safety of oil transport around the Strait of Hormuz threatened supply. WTI lost 0.16% for the week. Brent crude gained about 0.11% on the week.
The Week Ahead (29th July-2nd August)
The top U.S. and Chinese negotiators are scheduled to meet in Shanghai in the coming week for trade talks.
The Federal Reserve will hold a two-day policy review meeting beginning on Tuesday. The Central bank is expected to cut the benchmark short-term fed funds rate by a quarter-percentage point. The decision will be announced on Wednesday at 2 p.m. ET.
Nonfarm Payrolls for July are scheduled to be released on Friday. Payrolls are expected to fall to 165K from 224K in the previous month.
The preliminary reading of the French GDP for the second quarter is scheduled to be released on Tuesday. The GDP is expected to rise by 0.3% on a QoQ basis.
The Bank of England’s interest rate decision is scheduled to be released on Thursday. No change in policy is expected and Interest rates are expected to hold at 0.75%.
The Bank of Japan’s interest rate decision is scheduled to be released on Tuesday. No change in policy is expected and Interest rates are expected to hold at -0.10%.
In China, the Manufacturing PMI for the month of July is scheduled to be released on Wednesday. The PMI reading is expected to rise to 49.6 from 49.4 in the previous month.
MAJOR COMPANIES EARNINGS CALENDAR
Monday- Sanofi, Ryanair, Transocean, Texas Roadhouse, Beyond Meat, Booz Allen Hamilton, Cognex
Tuesday- Amgen, Apple, MasterCard, BP, Pfizer, Bayer, Advanced Micro, Sony, Samsung Electronics, Nintendo
Wednesday– Qualcomm, General Electric, Apache, Fiat Chrysler, BNP Paribas, Spotify
Thursday– Barclays, General Motors, Verizon, Kellogg, SVMK, U.S. Steel, ArcelorMittal, Siemens, Hanesbrands
Friday- Honda Motor, Toyota Motors, Seagate, Exxon Mobil, Chevron, CBOE Holdings
Important Economic Releases (29th July-2nd August)