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Monday Market Week
- Global equity markets mixed, weakness in Asia offset by a good start in Europe as investors prepare for Trump-Putin summit in Helsinki
- June's industrial output suggest that the second half could slow down.
- Business Profit Seasons Warm Up with Netflix, Bank of America and BlackRock Hitting the Record on Monday
- Oil Decline as Investors Bet on Libya Supply Will Start to Rise but Norwegian strikes prevent investors from increasing their bets. the stock futures markets suggest a positive opening on Wall Street, with a 60-point gain for the Dow and a 3-point rise for the S & P 500.
Market Overview
Stocks world worsened Monday Before the Helsinki summit, between US President Donald Trump and Russian President Vladimir Putin, and in light of weaker-than-expected data from China, the growth of the world's second largest economy is expected to slow down in the second half of the year.
President Trump tweeted early on Monday that US-Russian relations had never been worse, thanks to what he continues to call a biased investigation into allegations that Moscow was successful to interfere in the 2016 elections, of which the last 12 Russians accused of hacking emails detained on the server of the Democratic National Committee
Our relationship with Russia has never been worse thanks to many years of American madness and amazement. identity and now, the witch hunt Rigged
– Donald J. Trump (@realDonaldTrump) July 16, 2018
Trump will meet Putin in the Finnish capital later this morning, with the President and his National Security Advisor, John Bolton, insisting that the summit will be unstructured in terms of content and uncertain in terms of outcome.
The meeting will conclude Trump's controversial visit to Europe, during which he harangued NATO allies. The rival of British Prime Minister Theresa May publicly criticized her Brexit strategy and called the European Union "enemy" of the United States in an interview with CBS News.
This alone has put investors on the defensive in an active week of corporate earnings and key economic data, given the impact of recent White House trade policies on growth in Europe and Asia . This morning, China's figures show a modest slowdown in GDP in the second quarter and the lowest rate of growth in industrial output in two years.
The Chinese economy grew by 6.7% over the three months, according to the government, compared to 6.8% in the first quarter and on track, for its target of 6.5% in 2018 However, the slowdown in industrial production in June, the slowdown in retail sales growth and the imminent impact of US $ 200 billion on Chinese-made products mean that the second half's performance is certainly set back. in question
. The MSCI Asia ex_japan index slipped 0.30% at the close of the markets while the Shanghai Composite of China fell 0.61% and its CSI 300 first-order fell 0.6%. The Nikkei 225 of Japan was the highest point in the region, with the export-oriented benchmark rising 1.85% thanks to a weaker yen, which fell to 112.48 against the US dollar on the day the day
in Frankfurt with the reference index Stoxx 600 down 0.36%, while the benchmarks in Germany (-0.15%) and France (-0.40%) have all drifted in the red. The British FTSE 100 was down 1.16% at the start of trading in London, with gains sustained by a stronger pound, which reached a high of 1.3274 against the dollar in 10 days [19659008] suggest a cautious but positive start to the Wall Street trading day, with Dow Jones Industrial Average-marked contracts
Business results week is in full swing with a relatively hectic week on the data front, with Bank of America (BAC), BlackRock (BLK) and Netflix (NFLX) second quarter reports. The lender appeared fairly strong, with the lender making a profit of 63 cents per share over three months, net of interest expense, of $ 22.6 billion. Group shares rose 0.93% to $ 28.83 after publication.
Following are Goldman Sachs (GS), Johnson & Johnson (JNJ), United Continental Holdings (UAL) and United Health (UNH) on Tuesday, IBM (IBM), American Express (AXP), Morgan Stanley (MS), TMobile US (TMUS), eBay (EBAY) on Wednesday and Miscosoft (MSFT), Travelers (TRV) and Philip Morris (PM) on Thursday. General Electric (GE) and Honeywell (HON) to make a round of the earnings calendar Friday
Goldman Sachs is a key position in Jim Cramer's Action Alerts PLUS.
Investors will also navigate through retail sales data at 8:30 am, an appearance by Fed Chairman Jerome Powell before the Joint Economic Committee of Congress on Tuesday and Wednesday and the manufacturing index of the Philadelphia Fed Thursday.
Far from equities, however, investors are increasingly focusing on bond market signals, where the yield difference between 2-year and 10-year Treasury bills has narrowed to 24, 8 basis points, the smallest Since 2007, when short-term rates are higher than long-term rates, they create a "reverse yield curve", a condition that many economists consider an accurate forecast of the short-term recession. 19659010] Has the yield curve become obsolete as a recession indicator because of structural changes (QE ..)? The premium term has been declining since 1982, this time it's no different. pic.twitter.com/NXCleELlnr
– D.Schrottenbaum, CFA (@David_Schro) July 16, 2018
Others, however, argue that the rate policy of the Federal Reserve interest, which has always signaled international investors, dissuaded from buying European government bonds because of their extremely low yields (the German bunds, for example, are trading at 0.31% ) instead purchase longer-term US Treasury bills. Overall, they were slightly weaker this morning, according to reports that strangulation bottlenecks in Libya, which pushed up prices early last week, were going to relax and large producers such as Russia and Russia. Saudi Arabia were ready to increase their production.
Brent contracts for delivery in September, the global benchmark, fell $ 1.38 from Friday's close at the start of European trading and $ 73.95 per barrel. that WTI contracts for August delivery were tagged 1.12 lower at $ 69.89 per barrel.
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