The JPY is the strongest and the NZD is the weakest as the NA session begins. The USD is in the middle of the "league table" with gains vs the AUD and NZD, declines vs the JPY and the CHF and near unchanged vs the GBP and CAD.
Overnight, China's GDP growth showed a marked slowing in Q2 2023, raising concerns about the country's recovery from pandemic-era restrictions. The Q2 GDP saw a modest increase of 0.8% compared to the previous quarter, a significant deceleration from the 2.2% growth observed in Q1. YoY the GDP expanded by 6.3% much lower than the anticipated 7.3%. This slowdown in economic growth can be attributed to a struggling property sector, decreased exports, and weak retail sales, all of which have negatively impacted China's economy that seemed to be gaining traction at the start of the year.
It is the 2nd week of the new earning calendar. On Tuesday, several large companies will announce including Bank of America, Morgan Stanley, and Goldman Sachs. These banks' financial statements have attracted attention due to the failure of several regional rivals earlier this year, which led to a crisis in the financial services industry. Last Friday, JPMorgan and Wells Fargo reported significant year-on-year net income increases, but Citigroup saw a drop in profit by over a third. Other notable companies including Tesla, Netflix, and United Airlines are also set to release their earnings reports this week.
Oil prices decreased in volatile trading on Monday due to uncertainties around demand health in China, the world's top crude importer, and the Western response to Russia withdrawing from a UN-brokered Black Sea grain deal. Adding to this downward pressure, two Libyan oil fields that had been shut down resumed production over the weekend, increasing global supply.
In other markets:
- Crude oil is trading down -$0.89 or -1.17% at $74.53
- Spot gold is trading +$2.73 or 0.14% at $1957.55
- Silver is trading down $0.10 or -0.44% at $24.81
- Bitcoin is trading at $30,226. On Friday the price closed at 30,003 or $31
In the premarket for US stocks, the major indices are trading lower. On Friday the Dow rose for the 5th consecutive day. The S&P and NASDAQ snapped there 4 day win streak
- Dow Industrial Average is trading down -100 points after Friday's 113.89 point rise
- S&P index is down -9 points after Friday's -4.64 point decline point decline.
- NASDAQ index is trading -21 points after Friday's -24.87 point decline
Earnings this week include:
Tuesday, July 18
- Bank of America
- Morgan Stanley
- Lockheed Martin
- Charles Schwab
- PNC Financial
- Interactive brokers
- Bank of New York Mellon
- JB Hunt
Wednesday, July 19
- Tesla
- Netflix
- IBM
- Goldman Sachs
- Halliburton
- Alcoa
- United Airlines
Thursday, July 19
- Johnson & Johnson
- American Airlines
- Abbott Labs
- Philip Morris
- Intuitive Surgical
- Freeport McMoran
- Travelers
- Nokia
Friday, July 20
- American Express
- Schlumberger
- AutoNation
Also on tap are a slew of smaller regional banks including a large percentage of the stocks in the KRE index.
12 of the top 15 holdings of the KRE regional bank index representing about 25% of the total index will be released next week including.
- East West Bancorp EWBC (Thursday)
- First Horizon National FHN (Wednesday)
- Bank Ozk OZK (Thursday)
- Webster Financial WBS (Thursday)
- Synovus SNV (Thursday)
- M&T Bank MTB (Wednesday)
- Pinnacle Financial (Tuesday)
- Regents financial RF (Friday)
- Huntington Bancshare (Friday)
- Truist Financial Corp TFC (Thursday)
- Zions Bancorporation ZION (Wednesday)
- Western Alliance WAL (Tuesday)
In the European equity markets, the major indices are mixed
- German DAX, -0.62%
- France's CAC, -1.35%
- UK's FTSE 100, -0.30%
- Spain's Ibex, -0.18%
- Italy's FTSE MIB, -0.29% (delayed).
In the Asian Pacific market today, markets closed higher:
Japan’s Nikkei 225, -0.09%
China’s Shanghai Composite, -0.87%
Hong Kong’s Hang Seng, +0.33%
Australia’s S&P/ASX 200, -0.06%
In the US debt market, yields are lower in early US trading
- 2-year yield 4.727%, -2.3 basis points
- 5-year yield 3.997% -3.5 basis points
- 10-year yield 3.79% -3.1 basis points
- 30-year yield 3.901% -2.4 basis points
In the European debt market, benchmark 10-year yields are lower as well.
