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21/07/22 Briefing




The S&P 500 futures are down 8 points and are trading 0.3% below fair value. The Nasdaq 100 futures are up 3 points and are trading 0.2% below fair value. The Dow Jones Industrial Average futures are down 109 points and are trading 0.3% below fair value.

Futures for the major indices are mixed with mixed reactions to a lot of earnings reports since yesterday's close. There's some central bank news in play this morning with market participants waiting on the ECB decision at 8:15 a.m. ET. The ECB is expected to raise its key lending rates by 25 basis points, although there has been some chatter that a 50 basis point increase could also be discussed. In either case, this will be the ECB's first rate hike in 11 years.

Central bank outlier, the Bank of Japan, announced no change in its monetary policy. Its key lending rate remains unchanged at -0.1%. Japan's central bank also lowered its GDP forecast to 2.4% from 2.9% while raising its inflation forecast to 1.3% from 0.9%.

Russia resumed gas flows to Europe through the Nord Stream 1 but at reduced volumes seen before the scheduled maintenance. 

Italian Prime Minister Draghi resigned after he was unable to resume a coalition government, setting the stage for early elections. 

Energy complex futures have made big moves to the downside. WTI crude oil futures are down 4.8% to $95.10/bbl. Unleaded gasoline futures are down 6.2% to $3.07/gal. Natural gas futures are down 3.8% to $7.60/mmbtu. Separately, cryptocurrencies are also under pressure following Tesla's disclosure that it converted 75% of its Bitcoin holdings to fiat currency. The weakness, though, comes after a big move to the upside in recent weeks.

The 2-yr note yield is unchanged at 3.25% while the 10-yr note yield is up one basis point to 3.05%.

In corporate news:

  • Tesla (TSLA 761.87, +19.37, +2.6%): beats by $0.46, reports revs in-line, reaffirms expectation to achieve 50% average annual growth in vehicle deliveries over multi-year horizon

  • United Airlines (UAL 38.59, -3.09, -7.4%):  misses by $0.45, reports revs in-line; continues to expect to be profitable for FY22; provides quarterly, FY22, and FY23 outlook: expects no more than ~8% capacity in FY23 compared to 2019

  • Microsoft (MSFT 260.13, -2.14, -0.8%): eliminating several open job listings, according to Bloomberg

  • Travelers (TRV 157.00, -1.20, -0.8%): beats by $0.60, beats on revs

  • CSX (CSX 30.96, +1.23, +4.1%): beats by $0.03, beats on revs

  • SAP SE (SAP 87.90, -4.43, -4.8%):  misses by 0.12, beats on revs; updates guidance; announces further share repurchase program

  • Carnival Corp (CCL 9.80, -1.29, -11.6%): prices offering of 102,139,621 shares of common stock at $9.95 per share

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: -1.5%, China's Shanghai Composite: -1.0%, India's Sensex: +0.5%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: +0.6%.

  • In economic data:

  • Japan's June trade deficit JPY1.38 trln (expected deficit of JPY1.51 trln; last deficit of JPY2.39 trln). June Imports 46.1% yr/yr (expected 45.7%; last 48.9%) and Exports 19.4% yr/yr (expected 17.5%; last 15.8%)

  • Hong Kong's June CPI 1.8% yr/yr (expected 1.6%; last 1.2%)

  • Australia's NAB Quarterly Business Confidence 5 (last 15). June HIA New Home Sales 1.9% m/m (last -1.2%)

  • New Zealand's June trade deficit NZD701 mln (last surplus of NZD195 mln)

  • In news:

  • Japan's Prime Minister Kishida will reportedly reshuffle his cabinet in early September.

  • South Korea's POSCO Holdings will reportedly lower stainless steel prices in August due to a lower cost of nickel.

  • South Korea's exports through the first 20 days of July were up 14.5% yr/yr with chip exports increasing 13.2%.

  • Local governments in China are expected to help developers resume projects that have been delayed.

  • The Bank of Japan made no changes to its policy stance. The central bank lowered its forecast for Japan's 2022 GDP growth to 2.4% from 2.9% while the inflation forecast was raised to 1.3% from 0.9%.

  • Major European indices trade in mixed fashion with Italy's MIB (-1.3%) showing relative weakness after Prime Minister Draghi resigned, setting the stage for an early election. STOXX Europe 600: +0.1%, Germany's DAX: -0.5%, U.K.'s FTSE 100: -0.4%, France's CAC 40: +0.2%, Italy's FTSE MIB: -1.3%, Spain's IBEX 35: +0.1%.

  • In economic data:

  • U.K.'s June Public Sector Net Borrowing GBP22.12 bln (expected GBP13.20 bln; last GBP11.80 bln)

  • France's July Business Survey 106, as expected (last 108)

  • In news:

  • The European Central Bank is expected to announce a 25-bps rate hike at 8:15 ET, followed by President Lagarde's press conference at 8:45 ET.

  • Gas flow through the Nord Stream pipeline has resumed but at a slower rate.

  • The U.K.'s conservative party leadership race is down to Rishi Sunak and Liz Truss.


U.S. equity futures:

  • S&P 500 Futures: -9 @ 3,951

  • DJIA Futures: -120 @ 31,747

  • Nasdaq 100 Futures: +4 @ 12,230

Overseas:

  • Europe: DAX -0.5%, FTSE -0.4%, CAC +0.2%

  • Asia: Nikkei +0.4%, Hang Seng -1.5%, Shanghai Composite -1.0%

Commodities:

  • Crude Oil -4.77 @ 95.11

  • Nat Gas  -0.392 @ 7.615

  • Gold -19.25 @ 1680.95

  • Silver -0.423  @ 18.245

  • Copper -0.0550 @ 3.2700

U.S. Summary:

  • Earnings/Guidance:

  • ABB Ltd (ABB) misses by $0.21, misses on revs; to exit Russian market

  • Alaska Air (ALK) beats by $0.24, beats on revs; guides Q3 revs above consensus

  • Alcoa (AA) beats by $0.18, beats on revs

  • Allstate (ALL) reports catastrophe losses for Q2

  • American Airlines (AAL) beats by $0.02, reports revs in-line; issues downside Q3 rev guidance

  • Anglo American (NGLOY) reports Q2 production

  • AT&T (T) beats by $0.02, reports revs in-line; increases mobility service revenue guidance

  • Atlantic Union Bankshares (AUB) beats by $0.08

  • AutoNation (AN) beats by $0.26, misses on revs

  • Banc of California (BANC) beats by $0.02

  • BankUnited (BKU) misses by $0.08

  • Blackstone (BX) beats by $0.04, beats on revs

  • Cohen & Steers (CNS) beats by $0.02, beats on revs

  • Commerce Bancshares (CBSH) beats by $0.01, beats on revs

  • Crown (CCK) beats by $0.07, beats on revs; guides Q3 EPS below consensus; guides FY22EPS below consensus due to a stronger US dollar and higher energy costs in Europe

  • Crown Castle (CCI) misses by $0.11, beats on revs

  • CSX (CSX) beats by $0.03, beats on revs

  • CVB Financial (CVBF) beats by $0.04, net interest income up 15.7% yr/yr

  • Danaher (DHR) beats by $0.42, beats on revs

  • Discover Financial Services (DFS) beats by $0.19, beats on revs

  • Domino's Pizza (DPZ) misses by $0.08, beats on revs; Q2 comps -2.9%; international comps -2.2%

  • Dover (DOV) beats by $0.07, reports revs in-line; reaffirms FY22EPS guidance, revs guidance

  • Dow (DOW) beats by $0.17, reports revs in-line

  • D.R. Horton (DHI) beats by $0.15, misses on revs; lowers FY22revs below consensus

  • Equifax (EFX) beats by $0.07, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY22EPS below consensus, revs below consensus

  • Fifth Third (FITB) misses by $0.11;  guides for Q3 loans up 1%; total revenue 8-9% (Capital IQ consensus +10.0%); net interest income +11-12%; reaffirms FY22revenue growth of +7-8%

  • First Industrial Realty (FR) beats by $0.02, beats on revs; raises FY22FFO guidance, still inline with consensus

  • F.N.B. Corp (FNB) beats by $0.01, reports revs in-line

  • Herc Holdings (HRI) misses by $0.15, beats on revs; narrows FY 2022adjusted EBITDA guidance by raising lower end of guidance range

  • Huntington Banc (HBAN) beats by $0.02, net interest income increased 10%

  • Interpublic (IPG) reports EPS in-line, beats on revs

  • IQVIA (IQV) beats by $0.06, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY22EPS in-line, revs below consensus

  • KeyCorp (KEY) beats by $0.02, beats on revs

  • Kinder Morgan (KMI) reports Q2 (Jun) results, beats on revs

  • Knight-Swift (KNX) beats by $0.06, beats on revs; guides FY22EPS in-line

  • Landstar System (LSTR) misses by $0.22, misses on revs; guides Q3 EPS above consensus, revs above consensus; also increases its dividend by 20%

  • Las Vegas Sands (LVS) misses by $0.05, beats on revs

  • Marsh McLennan (MMC) beats by $0.03, beats on revs

  • Monarch Casino & Resort (MCRI) misses by $0.08, reports revs in-line

  • Nokia (NOK) beats by 0.02, beats on revs; reaffirms FY22revs guidance

  • Pacific Premier (PPBI) beats by $0.01, reports revs in-line

  • PacWest Bancorp (PACW) reports Q2 (Jun) results, beats on revs

  • Philip Morris International (PM) beats by $0.23, beats on revs; guides FY22EPS above consensus

  • Pool (POOL) beats by $0.23, misses on revs

  • Rexford Industrial Realty (REXR) beats by $0.01, reports revs in-line; raises FY22core FFO guidance, but it remains below consensus

  • Roblox (RBLX) rolls out a number of advancements to its material system

  • Roche Hldg (RHHBY) reports Q2 results; revs rise 5% yr/yr

  • Sandy Spring Banc (SASR) beats by $0.04, net interest income increased 2% yr/yr

  • SAP SE (SAP) misses by 0.12, beats on revs; updates guidance; announces further share repurchase program

  • SEI Investments (SEIC) misses by $0.02, beats on revs

  • SL Green Realty (SLG) reports Q2 (Jun) results, misses on revs

  • Sonoco Products (SON) beats by $0.11, reports revs in-line; guides Q3 EPS above consensus; guides FY22EPS above consensus

  • Texas Capital (TCBI) misses by $0.12

  • Tractor Supply (TSCO) beats by $0.01, reports revs in-line; raises FY22guidance

  • Travelers (TRV) beats by $0.60, beats on revs

  • Qualtrics (XM) misses by $0.04, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY22EPS below consensus, revs in-line

  • Quest Diagnostics (DGX) beats by $0.10, beats on revs; guides FY22EPS above consensus, revs above consensus

  • RLI Corp (RLI) beats by $0.42, misses on revs

  • Snap-On (SNA) beats by $0.32, beats on revs

  • Stanley Black & Decker (SWK) increases quarterly dividend by a penny to $0.80/sh; new yield is 2.8%

  • Steel Dynamics (STLD) beats on EPS and revs; customer order entry activity continues to be healthy

  • Super Micro Computer (SMCI) guides Q4 (Jun) earnings and revs well ahead of consensus due to customer design wins ramping and its total IT solution value

  • Synovus (SNV) beats by $0.07, reports revs in-line

  • Tabula Rasa HealthCare (TRHC) sees Q2 revs above consensus

  • Tesla (TSLA) beats by $0.46, reports revs in-line, reaffirms expectation to achieve 50% average annual growth in vehicle deliveries over multi-year horizon

  • TRI Pointe Homes (TPH) beats by $0.12, reports revs in-line

  • Umpqua Holdings (UMPQ) reports Q2 (Jun) results, beats on revs

  • Union Pacific (UNP) beats by $0.09, beats on revs

  • United Airlines (UAL) misses by $0.45, reports revs in-line; continues to expect to be profitable for FY22; FY22, and FY23 outlook: expects no more than ~8% capacity in FY23 compared to 2019

  • Valmont (VMI) beats by $0.36, beats on revs; raises FY22 EPS and revenue guidance above consensus

  • Webster Financial (WBS) reports Q2 (Jun) results, revs in-line

  • Wintrust Fin (WTFC) misses by $0.21, net interest income increased 21% yr/yr

  • WNS (WNS) beats by $0.12, beats on revs; guides FY23 EPS in-line, revs in-line

  • General News:

  • Mario Draghi resigned as Italian Prime Minister, according to the Wall Street Journal

  • Russia restarted gas shipments to Europe through pipeline, but only at 40% of capacity, according to BBC

  • Semiconductor supply stockpiles are growing, according to the Wall Street Journal

  • Altria (MO): Juul Labs saw revenue drop amid US govt crackdowns on teenage vaping, according to Bloomberg

  • Arbutus Biopharma  to discontinue development of its investigational hepatitis B virus core inhibitor candidate vebicorvir

  • Assembly Biosciences (ASMB) is discontinuing further development of its first-generation core inhibitor, vebicorvir

  • Bank of America (BAC) increases quarterly dividend to $0.22/share from $0.21/share

  • Blackstone (BX) secures commitments of $24 bln for real estate fund, according to Reuters

  • Boeing (BA) and Qatar Airways today finalized an order for 25 737 MAX airplanes

  • Boeing (BA): Cargolux selected the 777-8 Freighter as the preferred solution to replace its 747-400 fleet

  • CGI Group (GIB) selected to help the Federal Communications Commission advance America's communications strategies, including 5G

  • Cognizant Tech (CTSH) signed a new multi-year agreement with Organon (OGN) to help improve the company's delivery of healthcare products and crucial medicinal supply chain management

  • Compass Minerals (CMP) signs a non-binding memorandum of understanding to explore supplying Ford Motor Company (F) with a battery-grade lithium product from its lithium brine development project at its Ogden, Utah, solar evaporation facility

  • Dow (DOW) and Mura Technology to build multiple recycling facilities in the U.S. and Europe

  • EQT Corp. (EQT) increases quarterly dividend to $0.15/share from $0.125/share

  • Ford (F) Releases New Battery Capacity Plan, Raw Materials Details to Scale EVs; On Track to Ramp to 600K Run Rate by '23 and 2M+ by '26, Leveraging Global Relationships

  • Genius Group (GNS) announces the appointment of Mr. Erez Simha as its Chief Financial Officer

  • HilleVax (HLVX) announces results from NOR-213, a Phase 2 long-term immunogenicity follow-up clinical trial of adults and older adults who previously received HIL-214, the company's investigational vaccine for the prevention of moderate-to-severe acute gastroenteritis (AGE) caused by norovirus infection

  • Karyopharm Therapeutics (KPTI) and Menarini Group receive full Marketing Authorisation from the European Commission for NEXPOVIO (selinexor) for the treatment of patients with multiple myeloma after at least one prior therapy

  • Microsoft (MSFT) is eliminating several open job listings, according to Bloomberg

  • Mondelez Int'l (MDLZ): Enjoy Life Natural Brands unit announces expansion of its June 30 voluntary recall

  • NeoGenomics (NEO) appointed Chris Smith CEO effective August 15, 2022; Interim CEO Lynn Tetrault to resume role of independent Chair of the Board

  • Novartis' (NVS) unit Sandoz receives sBLA acceptance from the FDA for biosimilar Hyrimoz

  • Olema Pharmaceuticals (OLMA) receives FDA Fast Track designation for OP-1250 for the treatment of ER+ / HER2- metastatic breast cancer

  • Oshkosh (OSK): US Postal Service plans to increase its EV order from OSK, according to Reuters

  • Pan Am Silver (PAAS) drills highest grade intercept to date on the La Colorada Skarn project

  • PDF Solutions (PDFS) announces collaboration with SAP

  • Roche Hldg (RHHBY) Board of Directors has appointed Thomas Schinecker as the new Roche CEO effective 15 March 2023

  • Terran Orbital (LLAP) announced the commissioning of the Fleet Space CENTAURI-5 payload

  • Tesla (TSLA) in Q2 Shareholder Letter notes it converted approximately 75% of its Bitcoin purchases into fiat currency

  • Vale's (VALE) copper and nickel mining unit is taking longer than expected to turnaround, according to Bloomberg

  • Veracyte (VCYT) Announces New Clinical Validation Data for RNA Sequencing-Based Afirma Medullary Thyroid Cancer Classifier Published in Thyroid

  • Verve Therapeutics (VERV) announces four-year global research collaboration focused on discovering and developing an in vivo gene editing program for a single undisclosed liver disease

  • M&A:

  • Caledonia Mining (CMCL) acquires the Bilboes gold project in Zimbabwe

  • Equifax (EFX) announces that it has signed a definitive agreement to acquire LawLogix

  • Syndicate

  • Carnival (CCL) prices offering of 102,139,621 shares of common stock at $9.95 per share

  • Verve Therapeutics (VERV) priced upsized underwritten public offering of 8,333,334 shares of common stock at $27.00 per share for total gross proceeds of ~$225.0 mln

  • IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • SMCI +19.7%, NOK +6.4%, ASMB +5.5%, AA +5.4%, RLI +5%, CSX +4.9%, TSLA +3.7%, LVS +3.3%, MCRI+2%, DOW +2%, FNB +1.9%, DHR +1.9%, STLD+1.7%, ABUS +1.6%, ABB +1.6%, CVBF +1.1%, VMI+1.1%, F +1%, CMCL +1%, ALK +0.9%, NVS +0.7%

  • Gapping down:

  • VERV -16.2%, CCL -10.3%, UAL -6.4%, XM -4.4%, COIN -3.7%, EFX -3.5%, SAP -3.5%, LSTR -3.3%, UMPQ -3%, BITO -2.7%, DFS -2.7%, ALL -1.9%, EQT-1.9%, CCK -1.4%, KNX -1.3%, SWK -1.1%, SEIC-1%, CCI -0.9%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Brixmor Property (BRX) upgraded to Buy from Neutral at Mizuho; tgt lowered to $24

  • CSX (CSX) upgraded to Buy from Hold at Loop Capital; tgt $38

  • Downgrades:

  • Compass (COMP) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $5

  • Traeger (COOK) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt $5

  • Others:

  • a.k.a. Brands (AKA) initiated with a Sector Weight at KeyBanc Capital Markets

  • Allbirds (BIRD) initiated with a Sector Weight at KeyBanc Capital Markets

  • Ardmore Shipping (ASC) initiated with a Buy at Jefferies; tgt $10

  • Blue Apron (APRN) initiated with a Buy at The Benchmark Company; tgt $10

  • CACI Intl (CACI) initiated with an Outperform at Robert W. Baird; tgt $335

  • Capital Product Partners (CPLP) initiated with a Buy at Jefferies; tgt $20

  • Comstock (CRK) assumed with a Buy at Citigroup; tgt $17

  • Costamare (CMRE) initiated with a Buy at Jefferies; tgt $19

  • Danaos (DAC) initiated with a Buy at Jefferies; tgt $100

  • DHT (DHT) initiated with a Buy at Jefferies; tgt $9

  • Diana Shipping (DSX) initiated with a Buy at Jefferies; tgt $7

  • Dorian LPG (LPG) initiated with a Buy at Jefferies; tgt $20

  • Eagle Bulk Shipping (EGLE) initiated with a Buy at Jefferies; tgt $64

  • Euronav (EURN) initiated with a Hold at Jefferies; tgt $14

  • FLEX LNG (FLNG) initiated with a Hold at Jefferies; tgt $26

  • Frontline (FRO) initiated with a Hold at Jefferies; tgt $9

  • Genco Shipping & Trading (GNK) initiated with a Buy at Jefferies; tgt $25

  • Global Ship Lease (GSL) initiated with a Buy at Jefferies; tgt $22

  • Golden Ocean (GOGL) initiated with a Buy at Jefferies; tgt $14

  • International Seaways (INSW) initiated with a Buy at Jefferies; tgt $30

  • Navigator Holdings (NVGS) initiated with a Buy at Jefferies; tgt $15

  • Nordic American Tanker (NAT) initiated with a Hold at Jefferies; tgt $3

  • Safe Bulkers (SB) initiated with a Buy at Jefferies; tgt $5

  • Scorpio Tankers (STNG) initiated with a Buy at Jefferies; tgt $47

  • Star Bulk Carriers (SBLK) initiated with a Buy at Jefferies; tgt $30

  • Teekay Tankers (TNK) initiated with a Buy at Jefferies; tgt $25

  • TEN, Ltd. (TNP) initiated with a Hold at Jefferies; tgt $12

  • ZIM Integrated Shipping (ZIM) initiated with a Hold at Jefferies; tgt $55

Upcoming Events:

  • Econ Data:

  • 08:30 ET: Initial Claims for July 16 (Briefing.comConsensus 240K; Prior 244K)

  • 08:30 ET: Continuing Claims for July 9 (Briefing.comConsensus NA; Prior 1331K)

  • 08:30 ET: Philadelphia Fed Index for July (Briefing.comConsensus -1.2; Prior -3.3)

  • 10:00 ET: Leading Economic Index for June (Briefing.comConsensus -0.5%; Prior -0.4%)

  • 10:30 ET: EIA Natural Gas Inventories for July 16 (Briefing.comConsensus NA; Prior +58 bcf)

  • Earnings:

  • Monday (Jul 18)

  • Morning:  BAC SCHW GS PLD SYF

  • Afternoon: ELS IBM MRTN

  • Tuesday (Jul 19)

  • Morning: ALLY CFG HAL HAS JNJ LMT MAN NVS SBNY SI TFC

  • Afternoon: CALM FULT HWC HOPE IBKR JBHT NBHC NFLX OMC PNFP UCBI

  • Wednesday (Jul 20)

  • Morning:  ABT ASML BMI BKR BIIB CMA ELV FHN HCSG LAD MTB MKTX NDAQ NTRS

  • Afternoon:  AA CNS CCK CCI CSX CVBF DFS EFX FNB FR KMI KNX LSTR LVS PACW XM REXR RLI SEIC SLG STLD TSLA UMPQ UAL VMI WTFC

  • Thursday (Jul 21)

  • Morning: AIR ABB ALK AAL T AUB AN BANC BKU BX COLB DHI DHR DPZ DOV DOW EWBC FITB FCX GATX HRI HOMB HBAN IPG IQV KEY MMC NOK NUE PPBI PM POOL DGX SASR SAP SFNC SNA SON SNV TCBI TSCO TRV TPH UNP WBS WNS

  • Afternoon:  ASB OZK BJRI SAM COF FFBC GBCI HTH ISRG MAT PPG RHI STX SNAP SIVB THC UFPI VICR WRB WAL

  • Friday (Jul 22) 

  • Morning:  AXP ALV CLF FBP GNTX HCA NEE NEP RF ROP SLB SXT TWTR VZ

  • Afternoon: None

Asia & Europe detail:

Asia: Nikkei +0.4%, Hang Seng -1.5%, Shanghai Composite -1.0%

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Prime Minister Kishida will reportedly reshuffle his cabinet in early September. South Korea's POSCO Holdings will reportedly lower stainless steel prices in August due to a lower cost of nickel. South Korea's exports through the first 20 days of July were up 14.5% yr/yr with chip exports increasing 13.2%. Local governments in China are expected to help developers resume projects that have been delayed. The Bank of Japan made no changes to its policy stance. The central bank lowered its forecast for Japan's 2022 GDP growth to 2.4% from 2.9% while the inflation forecast was raised to 1.3% from 0.9%.

  • In economic data:

  • Japan's June trade deficit JPY1.38 trln (expected deficit of JPY1.51 trln; last deficit of JPY2.39 trln). June Imports 46.1% yr/yr (expected 45.7%; last 48.9%) and Exports 19.4% yr/yr (expected 17.5%; last 15.8%)

  • Hong Kong's June CPI 1.8% yr/yr (expected 1.6%; last 1.2%)

  • Australia's NAB Quarterly Business Confidence 5 (last 15). June HIA New Home Sales 1.9% m/m (last -1.2%)

  • New Zealand's June trade deficit NZD701 mln (last surplus of NZD195 mln)

---Equity Markets---

  • Japan's Nikkei: +0.4%

  • Hong Kong's Hang Seng: -1.5%

  • China's Shanghai Composite: -1.0%

  • India's Sensex: +0.5%

  • South Korea's Kospi: +0.9%

  • Australia's ASX All Ordinaries: +0.6%

---FX---

  • USD/JPY: +0.3% to 138.65

  • USD/CNH: +0.1% to 6.7782

  • USD/INR: UNCH at 79.95

Europe: DAX -0.5%, FTSE -0.4%, CAC +0.2%

Major European indices trade in mixed fashion with Italy's MIB (-1.3%) showing relative weakness after Prime Minister Draghi resigned, setting the stage for an early election. The European Central Bank is expected to announce a 25-bps rate hike at 8:15 ET, followed by President Lagarde's press conference at 8:45 ET. Gas flow through the Nord Stream pipeline has resumed but at a slower rate. The U.K.'s conservative party leadership race is down to Rishi Sunak and Liz Truss.

  • In economic data:

  • U.K.'s June Public Sector Net Borrowing GBP22.12 bln (expected GBP13.20 bln; last GBP11.80 bln)

  • France's July Business Survey 106, as expected (last 108)

---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: -0.5%

  • U.K.'s FTSE 100: -0.4%

  • France's CAC 40: +0.2%

  • Italy's FTSE MIB: -1.3%

  • Spain's IBEX 35: +0.1%

---FX---

  • EUR/USD: +0.1% to 1.0189

  • GBP/USD: -0.2% to 1.1951

  • USD/CHF: +0.2% to 0.9729


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