Trading Review: Ongoing Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
Oil strengthens: WTI crude is up 1.7 percent at $ 75.3 a barrel, while Brent crude is up $ 76.5 a barrel.
The day of trading on the European stock exchanges ended with slight changes in the leading indices: the DAX, POTSI 100, KAK 40 and Stokes 600 pan-European indices closed unchanged. The Amsterdam 25 index rose by 0.6%, the Milan 40 retreated by 0.5% and the Madrid 35 index fell by 1.4%.
Volkswagen has released a strategy update that it plans to have 50% of its sales of electric vehicles by 2030.
In New York, trading continues on a mixed trend: the Nasdaq is up 0.4%, the S&P 500 is up 0.1% and the Dow is down 0.1%.
Trading is conducted in a mixed trend: the NASDAQ index is up 0.3%, the Dow is down 0.2% and the S&P 500 is up 0.1%.
Notable increases: PepsiCo rose more than 2% after showing an annual increase of 20% in sales in the second quarter; Game maker EA is rising at a similar rate; Microsoft and Apple add about 1.5% each; JD.COM jumps more than 5% and Baidu is up almost 3.5%.
On the downside: Boeing drops 3% after delays in production of Dreamliner 787 following discovery of new defect; Goldman Sachs and JP Morgan lose about 2% after positive reports; The Marriott hotel chain is down 1.7%, Tesla is down about 1%, Caterpillar is down more than 1% and Disney is down 1%.
Among Israelis, Teva is down 1.2%, Rada is down 0.8% and Tufin is down 7.4%.
Bank Hapoalim refers to US inflation data, which significantly surpassed the market forecast and recorded an increase of 0.9% in June (against 0.5% expectations) and an annual increase of 5.4% (against expectations of 5%). Nadav Ofir, Global Markets Strategist in the Bank’s Chamber of Commerce Notes that “although this is a strong inflationary figure, its effect is minor for the time being. Apparently, ten-year yields in the United States jumped 3 basis points at the time of the announcement and have already returned almost all the way to a yield of 1.351%. “
“The fierce debate among economists today is whether inflation is transitory or permanent. We believe that a 5% rise in prices is unsustainable but that there will be some increase in inflation over the multi-year average in the pre-Corona period.”
Higher-than-expected inflation in June overshadowed the strong opening of the reporting season: New York trading opened with a slight negative trend and leading indices retreated 0.1%.
The 10-year US government bond yield falls slightly to 1.359%. The dollar strengthened by 0.4% against the currency basket and by 0.1% against the Japanese yen to 110.4 yen to the dollar. The pound fell 0.5% to $ 1.38 per pound and the euro retreated 0.4% to $ 1.18 per euro. WTI oil is trading steadily at $ 74 a barrel and Brent advanced oil is up 0.3% at $ 75.4 a barrel. Gold is up 0.1% at around $ 1,807 an ounce.
Against the backdrop of inflation data, futures on the leading New York indices are trading down 0.1% -0.3%.
Macro USA: The U.S. consumer price index rose 5.4 percent year-on-year in June, compared with expectations of a 5 percent increase. According to the Department of Labor, this is the highest rate of inflation in 13 years.
In cleaning up fluctuating energy and food prices, the core index rose by 4.5% – the sharpest increase since September 1991 and well above forecasts of 3.8%.
Goldman Sachs Beat analysts’ forecasts in the top and bottom line. The investment bank reported revenue of $ 15.39 billion in the second quarter today, compared to analysts’ expectations of about $ 12.2 billion. On the bottom line, the bank reported earnings of $ 15.02 per share compared to an expected $ 10.24 per share.
J.P. reported earlier. Morgan posted $ 3.78 earnings per share for the quarter, compared to analysts’ expected earnings of $ 3.21 per share.
A mixed trend in Europe and in trading on Wall Street indices. The yield on 10-year US government bonds is stabilizing at about 1.37%.
Ofer Klein, head of the economics and research division at Harel Insurance and Finance, notes that “since the US Federal Reserve announced about four weeks ago that it is beginning to discuss the timing of the quantitative easing expansion, government bond yields have moved surprisingly downward. There are several explanations; Concerns about the spread of the Delta variant, that the difficulty in recruiting workers will delay growth, the continued high bank purchases in the face of declining issuance rates, internalization of markets whose sharp rise in inflation this year is temporary, etc. Although these factors are unlikely to disappear soon. “H will rise against the backdrop of rapid growth, large deficits, massive money printing, and high disposable household income.”
European Stock Exchange Day opened with a mixed trend. The Dax and Kak indices are down 0.2%, and the Potsy index is up 0.2%, led by the big banks. Lloyds is up 1.5%, Barclays is up 1.3%, and the Charter standard is up 0.6%.
In Asia, there were price increases at the close of trading, except for the Australian Sydney Stock Exchange which closed with a very slight downward swing. The Nikkei strengthened 0.5%, Shanghai rose 0.5%, Shenzhen mimicked the decline it recorded earlier in the day and closed up 0.2%. The Hong Kong Stock Exchange, where trading is still taking place, has meanwhile climbed 1.6%.
Dr. Ron Eichel, Chief Analyst at Colmax Capital Markets, commented on the state of China’s markets: $ 150 billion. This is part of a long-standing move by the Chinese leadership, but market expectations were more modest and it was estimated that support would only reach small businesses. China tried in the first part of 2021 to curb credit growth, but fears of slowing growth and the presence of the virus caused a revolution. By the way, it seems that the government’s efforts to cool an increase in commodity markets are bearing fruit when producer prices fell in June from a 13-year high recorded in May. “
The crypto market is declining this morning, and Bitcoin is losing 4% and falling below the $ 33,000 threshold, trading at $ 32.7 thousand. Etherium drops below $ 2,000 and completes a 12% drop per week, DogeCoin drops to 20 cents per unit – a 14% drop per week.
Asian stock markets are on a positive trend this morning, with the Japanese Nikkei up 0.5% (following a jump of 2.3% yesterday), the Chinese Shanghai and Sydney indices climbing 0.2%, and the Hong Kong index jumping about 1.9%. On the other hand, the Shenzhen index loses 0.2%.
In Tokyo, the Softbank Group, which is up 2.1%, and the oil-locating company Infax, which is up 3.8% in high trading after receiving a first charge of 145,000 cubic meters of liquefied natural gas from a drilling project in Australia, stand out from the crowd. Australia Ichthus The company plans to reduce its carbon emissions to zero by 2050.
The futures contracts on the Wall Street indices are trading in a mixed trend, with the contracts on the Dow Jones and S&P 500 recording a slight decrease, and the contract on the Nasdaq rising by 0.1%. Today at 15:30 (Israel time) the US consumer price index will be published In June.
The commodity market is up as well, with gold rising to $ 1,810 an ounce. Brent crude is up 0.2% while U.S. oil is up 0.3% – and they are trading at $ 75.3 and $ 74.3 a barrel, respectively.
Yields on US bonds are strengthening today, with 10-year bonds recording a yield of 1.37%, about 10 basis points higher than last weekend. In the broad stock market. Which exhibits a special weakness in the state of falling yields.