📅 Friday, July 18
► European stocks grind higher; Earnings support market sentiment
The Stoxx 600 gained +0.1% after seeing some profit taking following a strong opening. The DAX and FTSE 100 are flat , CAC40 up 0.25% with Paris and Frankfurt outperforming. Burberry rose after better-than-feared results, while GSK fell on regulatory setbacks. The euro rose to 1.1635 (+0.35%) with the USD seeing some selling after recent gains. Equities are benefiting from resilient risk appetite, but analysts — including at Bank of America — warn of bubble signs if stocks keep rising despite high yields and sticky inflation. Most analysts remain upbeat – at least in the short-term.
► US futures edge up as rally cools; Earnings season keeps optimism alive
Markets remained constructive Tuesday, with S&P 500 and Nasdaq 100 futures both nudging +0.1% higher after Thursday’s record closes. A strong start to the US earnings season and solid economic data are supporting sentiment, even as valuations look stretched. Netflix beat expectations across all key metrics and raised its full-year outlook, yet shares dipped -1% in extended trading — a sign of profit taking at elevated levels. Treasury yields were stable (10Y at 4.44%) and swaps priced a sub-60% chance for a Fed cut in September despite dovish comments from Fed’s Waller. 27 S&P 500 names hit all-time high in the previous session.
► Asia mixed; China and Australia lead, Japan and India lag
Asia-Pacific markets were broadly positive, with China’s CSI 300 up +0.68% and Hong Kong’s Hang Seng rallying +1.33%. The ASX 200 surged +1.37%, boosted by mining stocks and strong earnings. Taiwan’s TSMC highlighted FX volatility as a risk to margins. In contrast, Japan’s Nikkei dipped -0.21% and India’s Nifty 50 lost -0.57% amid localized headwinds. USD/JPY held steady at 148.55. The Chinese yuan (offshore) was flat near 7.178/USD. Overall tone in Asia remained stable, buoyed by hopes that strong US demand continues to lift exports and tech.
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