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24/07/23 Briefing


The S&P 500 futures are up 7 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 44 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are up 19 point and are trading 0.1% above fair value.

The stock market is poised for a higher open ahead of a busy week of news that will feature earnings results from Alphabet (GOOG) and Microsoft (MSFT) on Tuesday and Meta Platforms (META) on Wednesday. Also, there will be policy meetings for the Fed, the ECB, and the Bank of Japan.

The economic calendar will feature a number of key releases highlighted by the Adv. Q2 GDP report and the June Personal Income and Spending Report that will include the Fed's preferred inflation gauge in the form of the core-PCE Price Index.

U.S. economic data today is limited to the preliminary July S&P Global US Manufacturing (prior 46.3) Services (prior 54.4) PMI readings at 9:45 a.m. ET.

Europe, meanwhile, saw some weaker-than-expected preliminary readings for July manufacturing and services sector activity show continued weakening.

Treasury yields are heading lower. The 2-yr note yield is down three basis points to 4.82% and the 10-yr note yield is down five basis points to 3.80%.

In corporate news:

  • AMC 1.62% (AMC 6.03, +1.63, +37.1%): was blocked by a Delaware judge from converting its APE units into common stock; aiming to renew stock conversion plan, according to Bloomberg

  • Tesla (TSLA 256.28, -3.71, -1.7%): downgraded to Neutral from Buy at UBS

  • Chevron (CVX 159.76, +1.07, +0.7%): sees Q2 EPS above consensus; provides update on senior management changes, including waiver on mandatory retirement age for CEO

  • Netflix (NFLX 427.00, -0.50, -0.1%): upgraded to Outperform from Neutral at Baird and raised its price target from $160 to $500

  • Domino's Pizza (DPZ 383.30, -2.14, -0.6%): beats by $0.02, misses on revs

  • Johnson & Johnson (JNJ 171.80, +1.61, +1.0%): announces its intention to split-off at least 80.1% of the shares of Kenvue (KVUE) through an exchange offer

  • Alnylam Pharma (ALNY 203.97, +3.90, +2.0%): announces partnership with Roche (RHHBY) to co-develop and co-commercialize Zilebesiran

  • Kodiak Sciences (KOD 3.51, -3.78, -51.9%): announces topline results from its Phase 3 studies of Tarcocimab Tedromer in Neovascular Age-Related Macular Degeneration and Diabetic Macular Edema and provides update on tarcocimab development program

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region were on the mixed side of things to begin the week with Japan's Nikkei (+1.2%) the big winner and Hong Kong's Hang Seng (-2.3%) the big loser. Japan's Nikkei: +1.2%, Hong, Kong's Hang Seng: -2.3%, China's Shanghai Composite: -0.1%, India's Sensex: -0.5%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: -0.1%.

  • In economic data:

  • Japan's preliminary July au Jibun Bank Japan Manufacturing PMI 49.4 (expected 49.8; last 49.8); Preliminary July au Jibun Bank of Japan Services PMI 53.9 (last 54.0)

  • Australia's preliminary July Judo Bank Australia Manufacturing PMI 49.6 (last 48.2); preliminary July Judo Bank Australia Services PMI 48.0 (last 50.3)

  • Singapore's June Core CPI 0.5% month-over-month (last 0.3%) and 4.5% year-over-year (expected 4.6%; last 5.1%)


  • In news:

  • Worries about the property market, and specifically a debt refinancing effort by Country Garden, undercut the Hang Seng while the Nikkei rose in response to reports last Friday that the BOJ may not make any changes at this point to its yield curve control policy.

  • The BOJ has a policy meeting July 27-28.

  • In related news, Kyodo reported that vice finance minister for international affairs Kanda said foreign exchange moves are being watched closely and that all options are available if there is excessive volatility in the yen. That view has helped the yen rebound some against the dollar after Friday's big selloff. USD/JPY -0.4% to 141.15.

  • Lots of speculation still surrounding potential China stimulus efforts.

  • According to Xinhua, China's Politburo reiterated vague plans to pursue proactive fiscal policy and monetary policy that is prudent.



  • Major European indices are on the softer side of things on Monday, showing lackluster form after a round of preliminary readings for July manufacturing and services sector activity showed continued weakening. STOXX Europe 600: -0.1%, Germany's DAX: flat, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.7%.

  • In economic data:

  • Eurozone's preliminary July HCOB Eurozone Manufacturing PMI 42.7 (expected 43.5; last 43.4); preliminary July HCOB Eurozone Services PMI 51.1 (expected 51.5; last 52.0); and preliminary July S&P Global Composite PMI 48.9 (expected 49.7; last 49.9)

  • Germany's preliminary July HCOB Germany Manufacturing PMI 38.8 (expected 41.0; last 40.6); preliminary July HCOB Germany Services PMI 52.0 (expected 53.1; last 54.1); and preliminary July HCOB Germany Composite PMI 48.3 (expected 50.3; last 50.6)

  • UK's Preliminary July S&P Global/CIPS UK Manufacturing PMI 45.0 (expected 46.1; last 46.5); preliminary July S&P Global/CIPS UK Services PMI 51.5 (expected 53.0; last 53.7); and preliminary July S&P Global/CIPS UK Composite PMI 50.7 (expected 52.4; last 52.8)

  • France's preliminary July HCOB Manufacturing PMI 44.5 (expected 46.0; last 46.0); preliminary July HCOB Services PMI 47.4 (expected 48.4; last 48.0); and preliminary July HCOB France Composite PMI 46.6 (expected 47.8; last 47.2)

  • Spain's PPI -8.1% year-over-year (expected -10.2%; last -6.8%)


  • In news:

  • Spain's IBEX 35 is the main laggard after national elections this weekend saw the conservative Popular Party win the most votes, but not win enough seats to form a government.

  • The ECB will hold its policy meeting Thursday.

  • FT reports that economists think the ECB could accelerate to its quantitative tightening efforts alongside raising interest rates.



U.S. equity futures:

  • S&P 500 Futures: +10 @ 4,546

  • DJIA Futures: +37 @ 35,265

  • Nasdaq 100 Futures: +49 @ 15,475

Overseas:

  • Europe: DAX Flat, FTSE -0.2%, CAC -0.5%

  • Asia: Nikkei +1.2%, Hang Seng -2.3%, Shanghai Composite -0.1%

Commodities:

  • Crude Oil +0.45 @ 77.52

  • Nat Gas -0.008 @ 2.699

  • Gold +0.15 @ 1966.75

  • Silver -0.073 @ 24.782

  • Copper -0.008 @ 3.8172


Earnings/Guidance:

  • Bank of Hawaii ( BOH 0.37% ) beats by $0.01

  • Chevron ( CVX 1.46% ) sees Q2 EPS above consensus; provides update on senior management changes

  • Domino's Pizza ( DPZ 0.62% ) beats by $0.02, misses on revs

  • Hope Bancorp ( HOPE 0.00% ) beats by $0.02, beats on revs

  • Philips ( PHG 0.17% ) beats by 0.02; beats on revs

  • Vodafone PLC ( VOD 0.00% ) reports in-line revs in Q1 trading statement; reaffirms FY24 outlook

News:

  • No party won enough support to govern in Spain following elections, according to the New York Times

  • Fed expected to increase rates by 25 basis points this week and preview September's plan, according to Bloomberg

  • 200 school districts have filed a consolidated lawsuit against social media companies alleging harm to students, according to the Wall Street Journal

  • Airlines forced to limit passengers because of extreme heat, according to Bloomberg

  • Transportation Secretary Pete Buttigieg says he is willing to take a hard line with airlines regarding consumer protections, according to Reuters

  • "Barbie" generated a record $155 mln at box office while "Oppenheimer" exceeded expectations with $80 mln. Independent film "Sound of Freedom" is now the 14th highest grossing film of the year, according to Variety

  • Adidas ( ADDYY ) received orders of more than EUR 500 mln for Yeezy shoes, according to Financial Times

  • Alibaba ( BABA 0.29% ) will not join Ant Group's share repurchase program, according to Reuters

  • Alnylam Pharma ( ALNY 0.00% ) announces partnership with Roche (RHHBY) to co-develop and co-commercialize Zilebesiran

  • Amazon ( AMZN 0.00% ) ordering workers to relocate as part of return to office 3 days a week policy, according to the New York Post

  • AMC Entertainment ( AMC 1.62% ) was blocked by a Delaware judge from converting its APE units into common stock

  • AMC (AMC, APE) aiming to renew stock conversion plan, according to Bloomberg

  • American Airlines ( AAL 0.00% ) offers to add $1 bln to pilot union deal, according to Bloomberg

  • Apple ( AAPL 0.00% ) expected to keep iPhone shipments steady this year, according to Bloomberg

  • BD ( BDX 0.54% ) receives FDA 510(k) clearance for updated BD Alaris Infusion System

  • Belite Bio ( BLTE 0.00% ) completes enrollment in pivotal global phase 3 DRAGON trial evaluating oral tinlarebant for stargardt disease

  • BioCardia ( BCDA 0.00% ) announces DSMB recommendation to pause new enrollment in Phase III Pivotal CardiAMP Cell Therapy Heart Failure Trial while additional blinded data is collected

  • Boeing ( BA 0.85% ) awarded a $393 mln US Army contract modification

  • Booz Allen Hamilton ( BAH 0.36% ) settles with DOJ for $377.5 mln to resolve previously disclosed civil investigation

  • CGI Group ( GIB 3.64% ) to invest $1 billion on expansion of AI capabilities to help clients design and deliver responsible, ROI-led strategies

  • Cinemark ( CNK 0.83% ) highlights openings of Barbie and Oppenheimer tracking to be best summer weekend of all time

  • CME ( CME 0.00% ) to eliminate 3% of workforce, according to Reuters

  • Cummins ( CMI 0.47% ) awarded a $347 mln US Army contract for V903 Cummins series 600 and 675 horsepower diesel engines

  • Exelixis ( EXEL 0.00% ) announces settlement of CABOMETYX patent litigation with Teva (TEVA)

  • Gilead Sciences ( GILD 0.00% ): Phase 3 ENHANCE study in higher-risk myelodysplastic syndromes has been discontinued

  • Gilead Sciences ( GILD 0.00% ) presents New Biktarvy data at IAS 2023

  • Gilead ( GILD 0.00% ) delayed release of new drug to maximize profits, according to the New York Times

  • GlaxoSmithKline ( GSK 0.14% ) announces ViiV Healthcare's cabotegravir for HIV prevention receives positive CHMP opinion from European Medicines Agency

  • Horizon Therapeutics plc ( HZNP 0.00% ) Announces Phase 2 Trial Evaluating Daxdilimab for the Treatment of Systemic Lupus Erythematosus (SLE) Did Not Meet Primary Endpoint

  • Immatics N.V. ( IMTX 0.00% ) receives $35 mln equity investment from Bristol Myers Squibb (BMY)

  • ImmunoGen ( IMGN 0.00% ) announces multi-target license and option agreement with ImmunoBiochem to develop next-generation antibody-drug conjugates

  • INNOVATE Corp ( VATE 0.57% ) announces the untimely passing of CEO Wayne Barr

  • Johnson & Johnson ( JNJ 1.07% ) announces its intention to split-off at least 80.1% of the shares of Kenvue (KVUE) through an exchange offer

  • Kodiak Sciences ( KOD 0.00% ) announces topline results from its Phase 3 studies of Tarcocimab Tedromer in Neovascular Age-Related Macular Degeneration and Diabetic Macular Edema and provides update on tarcocimab development program

  • New Found Gold Corp ( NFGC 3.02% ) intercepts 101 g/t Au over 2.75m & 11.5 g/t Au over 8.9m at '421 Zone' at Keats Main

  • Nikola ( NKLA 0.00% ): Electric truck reignited at Nikola's headquarters, according to Reuters

  • Novartis ( NVS 0.11% ) unit, Sandoz, receives positive CHMP opinion for multiple sclerosis biosimilar natalizumab

  • Overland ADCT BioPharma ( ADCT 5.33% ) announces NMPA Accepts Biologics License application and grants priority review for ZYNLONTA for treatment of relapsed or refractory diffuse large b-cell lymphoma

  • Pfizer ( PFE 1.71% ): Syros Pharma says it received notice from Pfizer that it will terminate license and collaboration agreement

  • Pfizer ( PFE 1.71% ): FDA provides update regarding storm damage at Pfizer facility in North Carolina

  • Pfizer ( PFE 1.71% ): FDA provides update regarding storm damage at pfizer facility in North Carolina; does not expect there to be any immediate significant impacts on supply given the products are currently at hospitals and in the distribution system

  • Symbotic ( SYM 0.00% ) and SoftBank Group (SFTBY) establish new Warehouse-as-a-Service joint venture to transform supply chain services through automation and A.I.

  • Syndax Pharmaceuticals ( SNDX 0.00% ) announce positive topline results from the pivotal AGAVE-201 trial of axatilimab in chronic graft-versus-host disease

  • TC Energy ( TRP 0.30% ) has entered into an agreement to monetize a 40 per cent interest in its Columbia Gas Transmission and Columbia Gulf Transmission systems

  • Teva Pharma ( TEVA 0.47% ) and Alvotech (ALVO) provide update on strategic biosimilars partnership

  • UPS ( UPS 0.19% ) and Teamsters to resume labor discussions tomorrow, according to Reuters

  • Verrica Pharmaceuticals ( VRCA 0.00% ) announces fda approval of YCANTH (cantharidin) topical solution as the First FDA approved treatment of pediatric and adult patients with molluscum contagiosum

  • Vodafone PLC ( VOD 0.00% ) appoints Luka Mucic as CFO

  • Wabtec Digital Mine ( WAB 0.11% ) announces the company received a series of orders for 3,500 of its new Generation 3 Collision Avoidance System from three major global mining companies

  • Yellow Corporation ( YELL 0.00% ) issues response to U.S. District Court for the District of Kansas ruling

M&A:

  • AEON Biopharma ( AEON 10.84% ) announces closing of business combination with Priveterra Acquisition Corp. and provides pipeline update

  • Brown & Brown ( BRO 0.24% ) enters into agreement to acquire New England Excess Exchange

  • Public Storage ( PSA 0.93% ) and Blackstone Real Estate Income Trust announces an agreement for Public Storage to acquire Simply Self Storage from BREIT (BX) for $2.2 billion

  • Sculptor Capital ( SCU 0.84% ): Rithm Capital Corp. (RITM) to acquire SCU for $639 mln

  • Symbotic ( SYM 0.00% ): Softbank (SFTBY) aiming to increase stake in SYM, according to Bloomberg

Syndicate:

  • Aurora Innovation ( AUR 0.00% ) files for 222,222,216 share common stock offering by selling shareholders

  • Casa Systems ( CASA 0.00% ) files for 11,907,973 shares of common stock by selling shareholders

  • Verrica Pharmaceuticals ( VRCA 0.00% ) announced that the Company has entered into a non-binding term sheet for a term loan facility of up to $125 mln, which the Company expects to close by the end of this week

IPOs:

  • Expected to Price:

  • Surf Air Mobility (NYSE: SRFM): The provider of a regional air travel mobility platform that shows schedules and charter flights run by third parties is offering 23.6 M shares through a direct listing.


Gapping Up/Down

  • Gapping up:

  • AMC +47.7%, BDX +7.2%, ALNY +5.2%, EXEL +4.5%, VOD +3.8%, YELL +2.8%, AUR +1.8%, CNK +1.6%, MAT +1.5%, APE +0.8%, JNJ +0.6%, CVX +0.5%


  • Gapping down:

  • KOD -48.7%, VRCA -11.5%, PHG -4.8%, DPZ -4.5%, GILD -2.2%, CASA -1.7%, HZNP -1.2%, KALV -1%


Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

  • Amylyx Pharmaceuticals (AMLX) upgraded to Buy from Neutral at Goldman; tgt raised to $49

  • Lam Research (LRCX) upgraded to Buy from Hold at Stifel; tgt raised to $725

  • Neurocrine Biosciences (NBIX) upgraded to Outperform from Market Perform at SVB Securities; tgt raised to $125

  • Shopify (SHOP) upgraded to Outperform from Market Perform at MoffettNathanson; tgt $76


  • Downgrades:

  • argenx (ARGX) downgraded to Neutral from Buy at UBS; tgt raised to $570

  • Cintas (CTAS) downgraded to Neutral from Buy at Citigroup; tgt raised to $550

  • Commscope (COMM) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $5.10

  • Denbury (DEN) downgraded to Hold from Buy at Stifel; tgt lowered to $86

  • Equifax (EFX) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $195

  • FMC Corp (FMC) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $102

  • Interpublic (IPG) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $33

  • Omnicom (OMC) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $88

  • ON Semiconductor (ON) downgraded to Neutral from Buy at Rosenblatt; tgt $95

  • Stagwell (STGW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $8

  • Tesla (TSLA) downgraded to Neutral from Buy at UBS; tgt raised to $270

  • Twilio (TWLO) downgraded to Underperform from Sector Perform at RBC Capital Mkts; tgt lowered to $50

  • Zions Bancorp (ZION) downgraded to Neutral from Overweight at JP Morgan; tgt $39

  • ZoomInfo (ZI) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $28


  • Others:

  • Coherus BioSciences (CHRS) initiated with a Buy at Citigroup; tgt $12

  • Janus International Group (JBI) initiated with an Outperform at Wolfe Research; tgt $14

  • QuantaSing Group Limited (QSG) initiated with a Neutral at Citigroup; tgt $9.70

  • Roper (ROP) assumed with an Outperform at Wolfe Research; tgt $558

  • Vivid Seats (SEAT) initiated with a Buy at BofA Securities; tgt $10

  • Zebra Tech (ZBRA) assumed with an Underperform at Wolfe Research; tgt $274


Econ Data:

  • 09:45 ET: S&P Global US Manufacturing PMI - Prelim for July (Briefing.com Consensus NA; Prior 46.3)

  • 09:45 ET: S&P Global US Services PMI - Prelim for July (Briefing.com Consensus NA; Prior 54.4)

Earnings:

  • Monday (Jul 24)

  • Morning: BOH DPZ HOPE PHG

  • Afternoon: AGYS AGNC ARE BRO CADE CDNS CATY CHX CLF CCK FFIV HSTM HXL IBTX LOGI MEDP NXGN NWE NXPI PKG RRC RGP RLI SSD TBI WHR WSFS


  • Tuesday (Jul 25)

  • Morning: MMM ALK ACI HOUS ADM ARCC AWI ABG AUB AVY BKU BIIB GLW CTS DHR DOV DOW FELE GATX GEHC GE GM HRI HUBB IVZ IRDM KMB LW LTH MCO MSCI NEE NEP NUE NVR ONB PCAR PJT PII PHM RTX SASR ST SHW SFNC SITC SBSI SPOT TRU VZ XRX

  • Afternoon: GOOG ASH ATRC BANC BDN CALM CNI CB CSGP CR EGP WIRE ENVA EQT EEFT FCF HA HIW KALU LXFR MANH MTDR MMSI MSFT NEX PACW PRO RNR RNST ROIC RHI SNAP TDOC TENB TXN TRMK UMBF UHS VBTX VICR V WM WSBC


  • Wednesday (Jul 26)

  • Morning: AMG ALKS ALLE APH T ADP BXMT BA BOKF GIB CHKP CME KO CSTM EVR FI FTV GD GPI HCSG HES HLT LAD LIVN MNRO COOP NAVI EDU ODFL OMF OTIS OC PAG BPOP PRG PB DGX RCI RES RPM R SLGN SLAB SCL TMHC TEL TDY TMO TLRY TSEM TNL UNP UMC VIRT WNC

  • Afternoon: AEM AGI AIN ALGN AWK AMP NLY AM AR ACGL ASGN AGR CSL CLS CCS CHE CMG CHDN FIX CNMD CLB CVBF EBAY EW ESI EIG ENVX EQC EG EVTC FIBK FLEX FTAI GFL GL GSHD GGG HP ICLR IEX IMAX PI INVH LHX LRCX LSTR LC MAT MXL META MEOH MAA MC MOH MYRG NTGR NXT NOV ORLY OII CASH PTEN PEGA PDM PPC PLXS PTC QS RJF ROL SLM STX SEIC NOW STAG STC SUI NOVA TER TNET TROX TYL UDR URI VMI VICI VKTX VSTO WU WH


  • Thursday (Jul 27)

  • Morning: AOS ABBV AGCO AEP AMT MT ARCH AMBP ATHM AVNT BCS BAX BSX BFH BMY BC CRS CARR CBZ CBRE CVE CNP CMS CNX CMCSA CROX CFR DTE EXP EME EXLS XPRO FSS FAF FBP FCFS FSV FCN GWW HEES HOG HCA HSY HTZ HON INMD IP ITGR IART KBR KDP KIM KEX LH LAZ TREE LII LECO LIN LKQ HZO MLM MAS MA MCD MDC MBLY NEOG NTCT NYCB NSC NOC NVCR OTLY OIS OPCH OSTK PPBI PATK BTU PNR PRFT PCG PDS PRCT RS RCL SPGI SAH LUV SRCL STM STRA FTI TECK TXT SHYF TSCO TW TPH TRS VLO VLY WAB WST WEX WTW XEL

  • Afternoon: ACHC AB ALSN AMH ABCB APPF ATR AJG AXNX AX BZH BJRI SAM BYD CP CWST CC CINF OFC COUR CUZ DECK DXCM DLR EMN EIX ENPH EQR ESS EXPO FHI FSLR F FBIN GLPI HIG PEAK HUBG HURN INTC JNPR KNSL KLAC LYV LPLA LTC MGRC MTH MTD MTX MHK MDLZ NATI OLN PEB PFSI PFG PFS ROKU SIMO SKX SKYW SNBR SSB SPSC SSNC SG TMUS TXRH SLCA X UCTT VRSN WY


  • Friday (Jul 28)

  • Morning: AON ARCB AZN AVTR B BAH CNC GTLS CHTR CVX CHD CNHI CL DAN XOM FHB BEN GNTX IMO MOG.A NWL NMRK NVT PIPR POR PG SAIA SNY STEL STVN TROW TRP WPC WT


Asia & Europe detail:

Asia: Nikkei +1.2%, Hang Seng -2.3%, Shanghai Composite -0.1%

Equity indices in the Asia-Pacific region were on the mixed side of things to begin the week with Japan's Nikkei (+1.2%) the big winner and Hong Kong's Hang Seng (-2.3%) the big loser. Worries about the property market, and specifically a debt refinancing effort by Country Garden, undercut the Hang Seng while the Nikkei rose in response to reports last Friday that the BOJ may not make any changes at this point to its yield curve control policy. The BOJ has a policy meeting July 27-28. In related news, Kyodo reported that vice finance minister for international affairs Kanda said foreign exchange moves are being watched closely and that all options are available if there is excessive volatility in the yen. That view has helped the yen rebound some against the dollar after Friday's big selloff. USD/JPY -0.4% to 141.15. Lots of speculation still surrounding potential China stimulus efforts. According to Xinhua, China's Politburo reiterated vague plans to pursue proactive fiscal policy and monetary policy that is prudent.

  • In economic data:

  • Japan's preliminary July au Jibun Bank Japan Manufacturing PMI 49.4 (expected 49.8; last 49.8); Preliminary July au Jibun Bank of Japan Services PMI 53.9 (last 54.0)

  • Australia's preliminary July Judo Bank Australia Manufacturing PMI 49.6 (last 48.2); preliminary July Judo Bank Australia Services PMI 48.0 (last 50.3)

  • Singapore's June Core CPI 0.5% month-over-month (last 0.3%) and 4.5% year-over-year (expected 4.6%; last 5.1%)


---Equity Markets---

  • Japan's Nikkei: +1.2%

  • Hong Kong's Hang Seng: -2.3%

  • China's Shanghai Composite: -0.1%

  • India's Sensex: -0.5%

  • South Korea's Kospi: +0.7%

  • Australia's ASX All Ordinaries: -0.1%

---FX---

  • USD/JPY: -0.4% to 141.15

  • USD/CNH: +0.2% to 7.1983

  • USD/INR: -0.2% to 81.82

Europe: DAX Flat, FTSE -0.2%, CAC -0.5%

Major European indices are on the softer side of things on Monday, showing lackluster form after a round of preliminary readings for July manufacturing and services sector activity showed continued weakening. Spain's IBEX 35 (-0.7%) is the main laggard after national elections this weekend saw the conservative Popular Party win the most votes, but not win enough seats to form a government. The ECB will hold its policy meeting Thursday. FT reports that economists think the ECB could accelerate to its quantitative tightening efforts alongside raising interest rates.

  • In economic data:

  • Eurozone's preliminary July HCOB Eurozone Manufacturing PMI 42.7 (expected 43.5; last 43.4); preliminary July HCOB Eurozone Services PMI 51.1 (expected 51.5; last 52.0); and preliminary July S&P Global Composite PMI 48.9 (expected 49.7; last 49.9)

  • Germany's preliminary July HCOB Germany Manufacturing PMI 38.8 (expected 41.0; last 40.6); preliminary July HCOB Germany Services PMI 52.0 (expected 53.1; last 54.1); and preliminary July HCOB Germany Composite PMI 48.3 (expected 50.3; last 50.6)

  • UK's Preliminary July S&P Global/CIPS UK Manufacturing PMI 45.0 (expected 46.1; last 46.5); preliminary July S&P Global/CIPS UK Services PMI 51.5 (expected 53.0; last 53.7); and preliminary July S&P Global/CIPS UK Composite PMI 50.7 (expected 52.4; last 52.8)

  • France's preliminary July HCOB Manufacturing PMI 44.5 (expected 46.0; last 46.0); preliminary July HCOB Services PMI 47.4 (expected 48.4; last 48.0); and preliminary July HCOB France Composite PMI 46.6 (expected 47.8; last 47.2)

  • Spain's PPI -8.1% year-over-year (expected -10.2%; last -6.8%)


---Equity Markets---

  • STOXX Europe 600: -0.1%

  • Germany's DAX: flat

  • U.K.'s FTSE 100: -0.2%

  • France's CAC 40: -0.5%

  • Italy's FTSE MIB: -0.1%

  • Spain's IBEX 35: -0.7%

---FX---

  • EUR/USD: -0.2% to 1.1097

  • GBP/USD: -0.1% to 1.2837

  • USD/CHF: -0.1% to 0.8643

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