|Day's Range||12,397.25 - 12,436.73|
|52 Week Range||10,279.20 - 12,886.83|
The U.S. retail sales are much stronger than expected and point to economic stability, not interest rate cuts.
British fashion brand Burberry's shares jumped on Tuesday, lifting other luxury goods makers, while upbeat earnings from big Wall Street banks spurred gains for the region's lenders, driving major European markets to their highest closing levels in a week. Burberry's shares surged 14.4%, their biggest one-day gain in 7 years, as quarterly results showed demand for new designs by creative chief Riccardo Tisci picking up. Upscale retailers in Europe, including Hermes, Louis Vuitton owner LVMH and Gucci parent Kering , rose between 0.4% and 2%, helping France's CAC 40 index outperform its European peers with a 0.65% gain.
A gauge of global stocks rose modestly on Monday after economic data from China came in as expected, but equities on Wall Street slipped on weakness in financials in the wake of Citigroup's earnings report. China's second-quarter annual GDP growth rate fell to a 27-year low of 6.2%, as expected, while June reports on industrial production, retail sales and urban investment were above forecasts.
Global indices drift higher on earnings and FOMC hopes. Both earnings and FOMC hopes could suffer as the impact of trade tariffs lingers on.
While economic data out of China came in better than expected this morning, a lack of stats will leave the European majors in the hands of Oval Office Chatter.
U.S. equity futures are pointing to a flat open on Wall Street Monday as investors both prep for a key set of data releases that will gauge the strength of the consumer economy and brace for the start of the second quarter earnings season.
It’s a big week ahead, with key stats, corporate earnings, and geopolitical risk to provide the majors with direction through the week.
U.S. equity futures extended gains Friday, following on from record high closes for both the Dow and the S&P; 500 last night, as investors continue to expect interest rate support from the Federal Reserve while betting on underlying strength of the domestic economy.
Europe's early stocks rally faded and global bond yields rose after jitters over corporate earnings and trade doused an early rally fuelled by enthusiasm over Federal Reserve Chairman Jerome Powell cementing rate cut expectations. The pan-European STOXX 600 struggled to cling onto 0.1% gains after losing 1.4% over the past four sessions with Germany's DAX and Britain's FTSE down 0.1% while France's CAC hovered just in positive territory.
World stocks rose, global bond yields fell and the dollar weakened after Federal Reserve Chairman Jerome Powell bolstered expectations the Fed would cut U.S. interest rates soon. Germany's DAX futures rose and Britain's FTSE futures gained 0.3%.
Asian stocks advanced and the dollar struggled on Thursday, after Federal Reserve Chairman Jerome Powell reinforced prospects for a U.S. interest rate cut later this month. In his first day of testimony before Congress on Wednesday, Powell confirmed that the U.S. economy was still under threat from disappointing factory activity, tame inflation and a simmering trade war. Powell said the central bank stands ready to "act as appropriate".
Shares were treading water on Wednesday while rising Treasury yields kept the dollar steady, as investors waited to hear whether the world's most powerful central banker would confirm or confound expectations for a U.S. rate cut this month. A worrying lack of inflation globally is one reason investors are counting on Federal Reserve Chair Jerome Powell to sound suitably dovish when he testifies to Congress on Wednesday. "I think the market seems to be veering towards a less dovish message from Powell than was the prevalent a couple of weeks ago," said Bank of New York Mellon senior strategist Neil Mellor.
European shares fell on Tuesday as a profit warning from chemicals giant BASF led to a slide in German shares, which were on course to post their biggest drop in two months. The pan-European STOXX 600 index fell 0.7% by 0815 GMT, in line with its Asian peers and Wall Street overnight amid dimming hopes of a sharp interest rate cut by the U.S. Federal Reserve later this month.
U.S. equity futures extended declines Tuesday, while global stocks retreated for a second consecutive session, as investors continued to reduce bets on a big Federal Reserve rate cut while focusing on deteriorating economic data and weakening corporate earnings.
A lack of stats leaves the markets to focus on FED Chair Powell’s testimony to Congress tomorrow and geopolitical risk, which could test the majors.
We’ve argued that the equity rally has been driven by liquidity, momentum and this concept of TINA – i.e. There Is No Alternative.