ETX Capital Daily Market Bite, 16th July, 2013; Subdued Markets Gear Up For Data; Bernanke Testimony
July 16, 2013 8:07 am
July 16th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
A subdued but mildly positive start for European share markets this morning as investors gear up for a torrent of economic data together with testimony to US Congress by Federal Reserve chief Ben Bernanke on Wednesday and Thursday. Risk sentiment remains broadly supportive with stocks on Wall Street again posting fresh record highs on Monday despite weaker than expected retail sales data. Asian markets overnight drifted lower however, easing after previous session gains on the estimate-meeting Chinese GDP figures for Q2 with the focus switching to Bernanke’s speech.
Price-action in Europe for that reason has little overnight direction with the attention now on inflation data from the UK, euro zone and the US. Importantly, we have the German ZEW survey which will be a key-risk event during the session followed by US industrial output and the NAHB housing market report. Earnings from the US are coming in thick and fast this week as the Q2 reporting season is now underway; around noon, we have numbers from Goldman Sachs, Johnson & Johnson, Charles Schwab and Coca-Cola while Yahoo reports after the closing bell. Across other asset classes, the euro is firmer against the USD, metal prices are softer, core government bonds are steady and US stock futures are inching a little higher.
Mining shares are moving to the top of the FTSE100 index after Rio Tinto reported solid production numbers for H1 2013. The miner posted record iron ore output and the company also raised full year copper output guidance. Rio’s reported that global iron ore production in H1 2013 was up 6% and expansion at its Pilbara mine remains on track, as the miner looks to dispose of assets and cut down $5B of costs as the Australian mining industry slowdown prompts producers to scale back on spending.
July 16th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
A subdued but mildly positive start for European share markets this morning as investors gear up for a torrent of economic data together with testimony to US Congress by Federal Reserve chief Ben Bernanke on Wednesday and Thursday. Risk sentiment remains broadly supportive with stocks on Wall Street again posting fresh record highs on Monday despite weaker than expected retail sales data. Asian markets overnight drifted lower however, easing after previous session gains on the estimate-meeting Chinese GDP figures for Q2 with the focus switching to Bernanke’s speech.
Price-action in Europe for that reason has little overnight direction with the attention now on inflation data from the UK, euro zone and the US. Importantly, we have the German ZEW survey which will be a key-risk event during the session followed by US industrial output and the NAHB housing market report. Earnings from the US are coming in thick and fast this week as the Q2 reporting season is now underway; around noon, we have numbers from Goldman Sachs, Johnson & Johnson, Charles Schwab and Coca-Cola while Yahoo reports after the closing bell. Across other asset classes, the euro is firmer against the USD, metal prices are softer, core government bonds are steady and US stock futures are inching a little higher.
Mining shares are moving to the top of the FTSE100 index after Rio Tinto reported solid production numbers for H1 2013. The miner posted record iron ore output and the company also raised full year copper output guidance. Rio’s reported that global iron ore production in H1 2013 was up 6% and expansion at its Pilbara mine remains on track, as the miner looks to dispose of assets and cut down $5B of costs as the Australian mining industry slowdown prompts producers to scale back on spending.
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