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31/08/23 Briefing

The S&P 500 futures are up 11 points and are trading 0.3% above fair value. The Nasdaq 100 futures are up 18 points and are trading 0.1% above fair value. The Dow Jones Industrial Average futures are up 154 points and are trading 0.5% above fair value.

Equity futures were mixed earlier, but trade with a positive disposition now. The Dow Jones Industrial Average futures outperform thanks to a big pre-open gain in Salesforce (CRM) after it reported better than expected earnings and raised guidance, saying that AI is sparking a massive long-term tech buying cycle. 

Market participants are looking ahead to the Personal Income and Spending report that will be released at 8:30 a.m. ET. That report features the Fed's preferred inflation

gauge in the form of the PCE and core-PCE Price Indexes. Weekly jobless claims will also be released at 8:30 a.m. ET

Data released overnight included China's August Manufacturing PMI, which was better than expected but still below 50.0, and Non-Manufacturing PMI, which decelerated to 51.0 from 51.5 previously. Also, flash CPI data from the eurozone showed total CPI up 5.3% year-over-year, unchanged from July, and core-CPI up 5.3% year-over-year, down from 5.5% previously. 

Treasury yields are slightly lower from yesterday's settlement, which is providing a measure of support to the equity futures market. The 2-yr note yield is down two basis points to 4.86% and the 10-yr note yield is down three basis points to 4.09%.

In corporate news:

  • Salesforce (CRM 227.70, +12.66, +5.9%): beats by $0.22, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus; AI sparking massive long-term tech buying cycle

  • CrowdStrike (CRWD 151.25, +2.07, +1.4%): beats by $0.18, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Okta (OKTA 81.35, +7.78, +10.6%): beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Pure Storage (PSTG 37.80, +1.22, +3.3%): beats by $0.04, reports revs in-line; guides Q3 revs above consensus; guides FY24 revs in-line with consensus

  • Five Below (FIVE 172.52, -10.43, -5.8%): beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs in-line

  • Victoria's Secret (VSCO 16.82, -1.00, -5.6%): misses by $0.02, reports revs in-line; provides Q3 guidance; expects FY24 net sales to decline by low single digits yr/yr

  • Palantir (PLTR 15.72, -0.61, -3.7%): downgraded to Underweight from Equal Weight at Morgan Stanley

  • Veeva Systems (VEEV 195.00, +2.41, +1.3%): beats by $0.08, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs in-line; reaffirms FY25 revs guidance

  • Signet Jewelers (SIG 73.50, +2.04, +2.9%): beats by $0.10, beats on revs; slightly raises FY24 EPS guidance; reaffirms FY24 revenue guidance; Q2 comps +12.0%

  • Dollar General (DG 131.95, -26.65, -16.9%): misses by $0.34, misses on revs; guides FY24 EPS below consensus, revs below consensus

  • Ciena (CIEN 45.30, +2.14, +5.0%): beats by $0.08, beats on revs

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: -0.6%, China's Shanghai Composite: -0.6%, India's Sensex: -0.4%, South Korea's Kospi: -0.2%, Australia's ASX All Ordinaries: +0.2%.

  • In economic data:

  • China's August Manufacturing PMI 49.7 (expected 49.4; last 49.3) and Non-Manufacturing PMI 51.0 (expected 51.1; last 51.5)

  • Japan's July Industrial Production -2.0% m/m (expected -1.4%; last 2.4%) and July Retail Sales 6.8% yr/yr (expected 5.4%; last 5.6%). July Housing Starts -6.7% yr/yr (expected -0.8%; last -4.8%) and Construction Orders 8.7% yr/yr (expected 2.1%; last 8.6%)

  • South Korea's July Industrial Production -2.0% m/m (expected -0.4%; last -1.5%); -8.0% yr/yr (expected -5.2%; last -5.9%). July Retail Sales -3.2% m/m (expected 0.0%; last 0.9%) and July Services Sector Output 0.4% m/m (expected 0.0%; last 0.5%)

  • Hong Kong's July Retail Sales 16.5% yr/yr (last 19.6%)

  • Australia's Q2 Building Capital Expenditure 3.5% qtr/qtr (expected -0.4%; last 1.3%), Q2 Plant/Machinery Capital Expenditure 1.9% qtr/qtr (expected -0.1%; last 4.2%), and Q2 Private New Capital Expenditure 2.8% qtr/qtr (expected 1.2%; last 3.7%). July Private Sector Credit 0.3% m/m, as expected (last 0.3%)

  • New Zealand's August ANZ Business Confidence -3.7 (expected -1.9; last -13.1)

  • In news:

  • China's Manufacturing PMI improved in August but remained in contractionary territory while Non-Manufacturing PMI decelerated again, reflecting slowing growth.

  • Industrial production in Japan and South Korea decreased at a faster than expected rate in July, prompting the Japanese government to lower its assessment of industrial production.

  • Japan's Prime Minister Kishida announced new gasoline subsidies that will take effect next week.

  • U.S. Commerce Secretary Raimondo said that some specific issues were not resolved during her trip to China, but she held constructive meetings with Chinese officials.

  • Major European indices trade near their flat lines while Germany's DAX (+0.6%) outperforms. STOXX Europe 600: +0.2%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.2%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.2%.

  • In economic data:

  • Eurozone's flash August CPI 0.6% m/m (expected 0.4%; last -0.1%); 5.3% yr/yr (expected 5.1%; last 5.3%). Flash August Core CPI 0.3% m/m, as expected (last -0.1%); 5.3% yr/yr, as expected (last 5.5%)

  • Germany's July Retail Sales -0.8% m/m (expected 0.3%; last -0.8%); -2.2% yr/yr (expected -1.0%; last -1.6%). August Unemployment Change 18,000 (expected 10,000; last 1,000) and Unemployment Rate 5.7%, as expected (last 5.6%)

  • France's Q2 GDP 0.5% qtr/qtr, as expected (last 0.1%); 0.9% yr/yr (last 0.9%). July Consumer Spending 0.3% m/m, as expected (last 0.9%). July PPI 0.9% yr/yr (last 3.1%). Flash August CPI 1.0% m/m (expected 0.8%; last 0.1%); 4.8% yr/yr (expected 4.6%; last 4.3%)

  • Italy's flash August CPI 0.4% m/m (expected 0.1%; last 0.0%); 5.5% yr/yr (expected 5.3%; last 5.9%). July Unemployment Rate 7.6% (expected 7.4%; last 7.5%)

  • Spain's June Current Account surplus EUR2.83 bln (expected EUR4.13 bln; last EUR3.99 bln)

  • Swiss July Retail Sales -2.2% yr/yr (last 1.0%)

  • In news:

  • European Central Bank policymaker Schnabel repeated her worries about underlying price pressures, adding that there is no target for a peak ECB interest rate.

  • Elsewhere, Bank of England Chief Economist Pill said that policy should remain restrictive until core inflation slows.

  • Italy is looking to sell some of its state-owned assets to improve the fiscal situation.

 

U.S. equity futures:

  • S&P 500 Futures +12 @ 4,527

  • DJIA Futures: +163 @ 35,054

  • Nasdaq 100 Futures: +25 @ 15,488

Overseas:

  • Europe: DAX +0.6%, FTSE +0.1%, CAC -0.2%

  • Asia: Nikkei +0.9%, Hang Seng -0.6%, Shanghai Composite -0.6%

Commodities:

  • Crude Oil +0.65 @ 82.28

  • Nat Gas +0.015 @ 2.811

  • Gold -1.05 @ 1971.95

  • Silver -0.156 @ 24.578

  • Copper -0.0380 @ 3.806


 

Earnings/Guidance:

  • 1-800-FLOWERS(FLWS) misses by $0.03, misses on revs; guides FY24 revs below consensus

  • Buckle (BKE) reports comparable store net sales for the 4-week period ended August 26 decreased 5.0% yr/yr

  • Caleres (CAL) beats by $0.10, misses on revs; guides FY24 EPS above consensus, revs in-line

  • Campbell Soup (CPB) reports EPS in-line, beats on revs; guides FY23 revs in-line; guides FY24 EPS in-line

  • Chewy (CHWY) beats by $0.20, reports revs in-line; guides Q3 net sales slightly below consensus, guides FY23 net sales inline

  • CIBC (CM) beats on the top and bottom line in USD

  • Ciena (CIEN) beats by $0.08, beats on revs

  • Cooper (COO) beats by $0.01, beats on revs; guides Q4 EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus

  • Costco (COST) reports August comps +3.4%; comps excluding gasoline +4.1%

  • CrowdStrike (CRWD) beats by $0.18, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Dollar General (DG) misses by $0.34, misses on revs; guides FY24 EPS below consensus, revs below consensus

  • Five Below (FIVE) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs in-line

  • Genesco (GCO) beats by $0.38, beats on revs; reaffirms FY24 EPS guidance, raises FY24 revenue guidance; Q2 comps -2%

  • GMS (GMS) beats by $0.01, beats on revs

  • Greif (GEF) beats by $0.21, misses on revs

  • Hello Group (MOMO) beats by RMB0.68, beats on revs; guides Q3 revs below consensus

  • Hormel Foods (HRL) misses by $0.01, misses on revs; guides Q4 revs in-line; guides FY23 EPS below consensus

  • KE Holdings (BEKE) beats by RMB0.67, beats on revs; guides Q3 revs below consensus; modifies share repurchase; issue special dividend

  • Mesoblast (MESO) reports Q4 resuluts; misses on revs

  • Oceaneering Intl (OII) sees FY23 EBITA of $275-310 mln

  • Okta (OKTA) beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Ollie's Bargain Outlet (OLLI) beats by $0.06, beats on revs; raises FY24 EPS and revenue guidance above consensus

  • Phibro Animal Health (PAHC) beats by $0.01, reports revs in-line; guides FY24 EPS below consensus, revs in-line

  • Pure Storage (PSTG) beats by $0.04, reports revs in-line; guides Q3 revs above consensus; guides FY24 revs in-line with consensus

  • Salesforce (CRM) beats by $0.22, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Signet Jewelers (SIG) beats by $0.10, beats on revs; slightly raises FY24 EPS guidance; reaffirms FY24 revenue guidance; Q2 comps +12.0%

  • Titan Machinery (TITN) beats by $0.21, beats on revs; reaffirms FY24 EPS guidance

  • UBS AG (UBS) reports Q2 results

  • UBS AG (UBS): Credit Suisse reports Q2 results

  • Veeva Systems (VEEV) beats by $0.08, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs in-line; reaffirms FY25 revs guidance

  • Victoria's Secret (VSCO) misses by $0.02, reports revs in-line; provides Q3 guidance; expects FY24 net sales to decline by low single digits yr/yr

  • Visa (V) announces volume and transaction data for July and August; July U.S. payments volume grew 5% yr/yr, August grew 7%

News:

  • US considering ways to allow more financial firms the ability to access federal home loan banks, according to Bloomberg

  • Over 200,000 customers without power in Florida following Hurricane Idalia, according to the Miami Herald

  • Atlanta Fed President Raphael Bostic (not a voting FOMC member) feels the Fed's monetary policy is appropriately restrictive

  • ADC Therapeutics (ADCT) announces updates on ZYNLONTA LOTIS clinical trial programs at the eleventh annual meeting of the Society of Hematologic Oncology

  • Alphabet (GOOG) generative AI experience in search has expanded to India and Japan

  • Alpine Immune Sciences (ALPN) Announces Initiation of Dosing in 240 mg IgA Nephropathy Cohort of Povetacicept Clinical Study (RUBY-3)

  • Alterity Therapeutics (ATHE) presents new data on multiple system atrophy, a rare Parkinsonian Disorder

  • Baidu (BIDU) and ByteDance introduce artificial intelligence chat bots, according to Financial Times

  • BioMarin Pharmaceutical (BMRN) announces first person treated commercially with ROCTAVIAN for severe Hemophilia A in Europe

  • CSG Systems (CSGS) COO Ken Kennedy to depart; reiterates all FY23 financial guidance target

  • Domo (DOMO) strengthens partnership with Google Cloud (GOOG) through Google Cloud Ready - BigQuery designation

  • Enviva (EVA) names Glenn Nunziata as Executive Vice President and Chief Financial Officer, effective immediately

  • Fisker (FSR) releases additional details for Fisker Pear

  • FTC Solar (FTCI) launched SUNOPS-a differentiated cloud-based PV asset monitoring solution poised to redefine solar asset performance management

  • Globalstar (GSAT) details Launch Services Agreement with SpaceX

  • Goldman Sachs (GS): Regulators raised risk concerns regarding Goldman's partnerships with financial technology firms, according toFinancial Times

  • GoPro (GPRO) announced a new partnership

  • Granite Constr (GVA) awarded approximately $73 mln Construction Manager/General Contractor project by the Provo River Water Users Association

  • Hammerhead Energy (HHRS) announces 'fair market value' in connection with redemption of its outstanding public warrants

  • Hawaiian Electric (HE): White House announced $95 million through the Bipartisan Infrastructure Law to harden Hawai?i's power grid and position the state to better withstand future storms

  • I-Mab (IMAB): Genexine's long-acting growth hormone meets Phase 3 primary endpoint

  • KE Holdings (BEKE) announces upsizing and extension of share repurchase program and a special cash dividend of US 0.057/share

  • Lifezone Metals (LZM) Reports Completion of Tembo Zone Infill Drilling at the Kabanga Nickel Project with 41 m Intersect at 2.07% Ni, including 16.4 m at 2.77% Ni

  • LivaNova (LIVN) receives U.S FDA clearance and CE Mark for its Essenz In-Line Blood Monitor

  • Microsoft (MSFT) announces changes to Microsoft 365 and Office 365 to address European competition concerns

  • NaaS Technology (NAAS) entered into $40 mln convertible note purchase agreement with LMR Partners Limited

  • NVIDIA (NVDA): US restricting Nvidia and AMD (AMD) AI chip exports to some Middle Eastern nations, according to Reuters

  • Pegasystems (PEGA) announces workforce reduction of approximately 4%

  • Perrigo (PRGO): FDA issues warning letters to three infant formula manufactures: ByHeart, Mead Johnson Nutrition, and Perrigo Wisconsin; not advising discarding or avoiding purchase

  • Petrobras (PBR) signs agreements with Chinese companies

  • PHINIA (PHIN) initiates quarterly dividend and authorizes $150 million share repurchase program

  • SAGE Therapeutics (SAGE) plans to reorganize its business operations and pipeline priorities to support goals for long-term business growth

  • Telsa (TSLA): US investigating Tesla plan to purchase construction materials, according toBloomberg

  • TTM Tech (TTMI) Aerospace & Defense Sector Awarded contract valued at $86.7mln from the U.S. Army

  • Twist Bioscience (TWST) enters into agreement with Ono Pharmaceutical to discover novel antibodies for autoimmune diseases

  • UGI Corp (UGI) announces review of strategic alternatives

  • Vertical Aerospace Group's (EVTL) VX4 Programme Moves to the Next Phase

  • Viavi (VIAV) appoints Pam Avent as interim CFO; effective on August 25 as Henk Derksen resignates

M&A:

  • Greif (GEF) acquires 51% of the ownership interest in ColePak; financial terms were not disclosed

  • Natura &Co (NTCO) closes sale of Aesop

  • Sculptor (SCU) special committee responds to revised unsolicited proposals from Bidder J Consortium

  • Titan Machinery (TITN) announces acquisition of O'Connors for $63 million in cash

  • UBS AG (UBS): Credit Suisse (CS) AG to be fully integrated

  • Watts Water Tech (WTS). acquires Bradley Corporation for $303 mln

  • Zevra Therapeutics (ZVRA) to acquire Acer Therapeutics (ACER)

Syndicate:

  • Hyatt Hotels (H) files mixed shelf securities offering

  • IO Biotech (IOBT) files for 74,131,294 shares of common stock by selling shareholders

  • Taysha Gene Therapies (TSHA) files for 166,663,354 shares of common stock by selling shareholders

IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • OKTA +11%, ADCT +7.5%, UGI +7.4%, CRM+5.5%, IMAB +5.1%, MESO +4.9%, UBS+4.2%, TSHA +3.7%, DOMO +3.7%, LIVN+3.7%, TITN +3.2%, BMRN +1.3%, TW +1.3%, CRWD +1.3%, SCU +0.8%

  • Gapping down:

  • PAHC -6.3%, FIVE -6%, VSCO -5.3%, CHWY-4.5%, BEKE -3.6%, EVA -2.6%, COO -1.6%, TTMI -1.2%, TTD -1.2%, GEF -0.9%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • 3M (MMM) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $113

  • Arista Networks (ANET) upgraded to Buy from Neutral at Citigroup; tgt raised to $220

  • Exxon Mobil (XOM) upgraded to Neutral from Sell at Redburn; tgt raised to $105

  • Guidewire Software (GWRE) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $85

  • Hanover Insurance (THG) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $126

  • Okta (OKTA) upgraded to In-line from Underperform at Evercore ISI; tgt raised to $75

  • Shopify (SHOP) upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $70

  • SkyWest (SKYW) upgraded to Outperform from Mkt Perform at Raymond James; tgt $55

  • Vasta Platform (VSTA) upgraded to Overweight from Neutral at JP Morgan; tgt $5.50

  • Downgrades:

  • C.H. Robinson (CHRW) downgraded to Negative from Neutral at Susquehanna; tgt lowered to $77

  • Chewy (CHWY) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $35

  • Ero Copper (ERO) downgraded to Sector Perform from Sector Outperform at Scotiabank

  • Gaotu Techedu (GOTU) downgraded to Underperform from Outperform at CLSA

  • Hostess Brands (TWNK) downgraded to Neutral from Overweight at JP Morgan; tgt $28

  • MasterCraft (MCFT) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $23

  • Medical Properties Trust (MPW) downgraded to Neutral from Buy at Mizuho; tgt lowered to $9

  • Outlook Therapeutics (OTLK) downgraded to Neutral from Buy at Chardan Capital Markets

  • Outlook Therapeutics (OTLK) downgraded to Neutral from Buy at H.C. Wainwright; tgt lowered to $1

  • Palantir Technologies (PLTR) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt raised to $9

  • Roche Hldg (RHHBY) downgraded to Neutral from Buy at BofA Securities

  • RXO, Inc. (RXO) downgraded to Negative from Neutral at Susquehanna; tgt lowered to $14

  • Victoria's Secret (VSCO) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $18

  • Others:

  • Chord Energy (CHRD) initiated with an Outperform at BMO Capital Markets; tgt $185

  • Civitas Resources (CIVI) initiated with an Outperform at BMO Capital Markets; tgt $95

  • Crinetics Pharmaceuticals (CRNX) initiated with an Outperform at Oppenheimer; tgt $40

  • Establishment Labs (ESTA) initiated with an Overweight at JP Morgan; tgt $75

  • FB Financial (FBK) resumed with a Mkt Perform at Raymond James

  • Flushing Fin (FFIC) initiated with an Outperform at Raymond James; tgt $17

  • Lyra Therapeutics (LYRA) initiated with a Buy at H.C. Wainwright; tgt $12

  • Microvast (MVST) initiated with a Buy at Janney; tgt $8

  • Middlefield Banc (MBCN) initiated with a Mkt Perform at Raymond James

  • MoonLake Immunotherapeutics (MLTX) initiated with a Buy at Needham; tgt $76

  • MP Materials (MP) initiated with an Overweight at JP Morgan; tgt $27

  • Plumas Bancorp (PLBC) initiated with an Outperform at Raymond James; tgt $38

  • RadNet (RDNT) initiated with a Buy at Truist; tgt $40

Econ Data:

  • 08:30 ET: Initial Claims for Aug 26 (Briefing.comConsensus 235K; Prior 230K)

  • 08:30 ET: Continuing Claims for Aug 19 (Briefing.comConsensus NA; Prior 1702K)

  • 08:30 ET: Personal Income for July (Briefing.comConsensus 0.3%; Prior 0.3%)

  • 08:30 ET: Personal Spending for July (Briefing.comConsensus 0.7%; Prior 0.5%)

  • 08:30 ET: PCE Prices for July (Briefing.comConsensus 0.2%; Prior 0.2%)

  • 08:30 ET: PCE Prices - Core for July (Briefing.comConsensus 0.2%; Prior 0.2%)

  • 09:45 ET: Chicago PMI for August (Briefing.comConsensus 45.0; Prior 42.8)

  • 10:30 ET: EIA Natural Gas Inventories for Aug 26 (Briefing.comConsensus NA; Prior +18 bcf)

Earnings:

  • Monday (Aug 28)

  • Morning:  BZUN

  • Afternoon: HEI

  • Tuesday (Aug 29)

  • Morning: AMWD BMO BNS BBY BIG CTLT DCI SJM MBUU NIO PDD

  • Afternoon:  AMBA BOX HPE HPQ NCNO PVH ZTO

  • Wednesday (Aug 30)

  • Morning:  BF.B CONN MCFT PDCO

  • Afternoon:  CHWY COO CRWD FIVE GEF OKTA CRM VEEV VSCO

  • Unspecified: PSTG

  • Thursday (Aug 31)

  • Morning: FLWS ASO CAL CPB CM CIEN DG GCO GMS MOMO HRL BEKE OLLI SIG TITN UBS

  • Afternoon:  AVGO DELL ESTC HCP LULU MDB NTNX OXM PD S VMW

 

Asia & Europe detail:

Asia: Nikkei +0.9%, Hang Seng -0.6%, Shanghai Composite -0.6%

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. China's Manufacturing PMI improved in August but remained in contractionary territory while Non-Manufacturing PMI decelerated again, reflecting slowing growth. Industrial production in Japan and South Korea decreased at a faster than expected rate in July, prompting the Japanese government to lower its assessment of industrial production. Japan's Prime Minister Kishida announced new gasoline subsidies that will take effect next week. U.S. Commerce Secretary Raimondo said that some specific issues were not resolved during her trip to China, but she held constructive meetings with Chinese officials.

  • In economic data:

  • China's August Manufacturing PMI 49.7 (expected 49.4; last 49.3) and Non-Manufacturing PMI 51.0 (expected 51.1; last 51.5)

  • Japan's July Industrial Production -2.0% m/m (expected -1.4%; last 2.4%) and July Retail Sales 6.8% yr/yr (expected 5.4%; last 5.6%). July Housing Starts -6.7% yr/yr (expected -0.8%; last -4.8%) and Construction Orders 8.7% yr/yr (expected 2.1%; last 8.6%)

  • South Korea's July Industrial Production -2.0% m/m (expected -0.4%; last -1.5%); -8.0% yr/yr (expected -5.2%; last -5.9%). July Retail Sales -3.2% m/m (expected 0.0%; last 0.9%) and July Services Sector Output 0.4% m/m (expected 0.0%; last 0.5%)

  • Hong Kong's July Retail Sales 16.5% yr/yr (last 19.6%)

  • Australia's Q2 Building Capital Expenditure 3.5% qtr/qtr (expected -0.4%; last 1.3%), Q2 Plant/Machinery Capital Expenditure 1.9% qtr/qtr (expected -0.1%; last 4.2%), and Q2 Private New Capital Expenditure 2.8% qtr/qtr (expected 1.2%; last 3.7%). July Private Sector Credit 0.3% m/m, as expected (last 0.3%)

  • New Zealand's August ANZ Business Confidence -3.7 (expected -1.9; last -13.1)

---Equity Markets---

  • Japan's Nikkei: +0.9%

  • Hong Kong's Hang Seng: -0.6%

  • China's Shanghai Composite: -0.6%

  • India's Sensex: -0.4%

  • South Korea's Kospi: -0.2%

  • Australia's ASX All Ordinaries: +0.2%

---FX---

  • USD/JPY: -0.2% to 145.89

  • USD/CNH: -0.1% to 7.2948

  • USD/INR: +0.2% to 82.72

 

Europe: DAX +0.6%, FTSE +0.1%, CAC -0.2%

Major European indices trade near their flat lines while Germany's DAX (+0.6%) outperforms. European Central Bank policymaker Schnabel repeated her worries about underlying price pressures, adding that there is no target for a peak ECB interest rate. Elsewhere, Bank of England Chief Economist Pill said that policy should remain restrictive until core inflation slows. Italy is looking to sell some of its state-owned assets to improve the fiscal situation.

  • In economic data:

  • Eurozone's flash August CPI 0.6% m/m (expected 0.4%; last -0.1%); 5.3% yr/yr (expected 5.1%; last 5.3%). Flash August Core CPI 0.3% m/m, as expected (last -0.1%); 5.3% yr/yr, as expected (last 5.5%)

  • Germany's July Retail Sales -0.8% m/m (expected 0.3%; last -0.8%); -2.2% yr/yr (expected -1.0%; last -1.6%). August Unemployment Change 18,000 (expected 10,000; last 1,000) and Unemployment Rate 5.7%, as expected (last 5.6%)

  • France's Q2 GDP 0.5% qtr/qtr, as expected (last 0.1%); 0.9% yr/yr (last 0.9%). July Consumer Spending 0.3% m/m, as expected (last 0.9%). July PPI 0.9% yr/yr (last 3.1%). Flash August CPI 1.0% m/m (expected 0.8%; last 0.1%); 4.8% yr/yr (expected 4.6%; last 4.3%)

  • Italy's flash August CPI 0.4% m/m (expected 0.1%; last 0.0%); 5.5% yr/yr (expected 5.3%; last 5.9%). July Unemployment Rate 7.6% (expected 7.4%; last 7.5%)

  • Spain's June Current Account surplus EUR2.83 bln (expected EUR4.13 bln; last EUR3.99 bln)

  • Swiss July Retail Sales -2.2% yr/yr (last 1.0%)

---Equity Markets---

  • STOXX Europe 600: +0.2%

  • Germany's DAX: +0.6%

  • U.K.'s FTSE 100: +0.1%

  • France's CAC 40: -0.2%

  • Italy's FTSE MIB: +0.1%

  • Spain's IBEX 35: +0.2%

---FX---

  • EUR/USD: -0.5% to 1.0869

  • GBP/USD: -0.4% to 1.2672

  • USD/CHF: +0.4% to 0.8814

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