Q2 Earnings Season Begins Tomorrow, Further Disappointing German Data
July 7, 2014 7:40 am
European stock markets start the week on a subdued note, with major benchmark indices on the soft-side following weakness in Asian markets overnight. Early in Europe on Monday, the Stoxx Europe 600 Index was lower by 0.1% while the FTSE100 index in London was down by 0.2%. Futures on the S&P500 Index slid 0.1% while the MSCI Asia Pacific Index dropped 0.2%.
The rally inspired by the US jobs data has faded with traders now looking ahead to a financial report from Alcoa, the US aluminium giant which unofficially kicks off the second quarter earnings season after the closing bell on Tuesday.
Data this morning has disappointed markets with German industrial output falling 1.8% between April and May, significantly below market expectations of no change and a big miss from April’s 0.2% reading. This reading from Germany is in line with the poor data reports out of the European power house in recent weeks in areas such as unemployment data, business sentiment and factory orders. In response to the poor German data, the euro fell against the US dollar to $1.3575, down from around $1.3595. The common currency also weakened against the yen to Y138.70 from Y138.76. The US dollar continues to strengthen while the Japanese yen was 0.1% weaker against the dollar at Y102.2.
Asian markets fell from six-year highs overnight as the better US jobs data was brushed aside in favour of an anxious tone ahead of the start of earnings season. Japan’s Nikkei 225 fell by 0.5% while Hong Kong’s Hang Seng index was broadly flat. Sydney’s S&P/ASX 200 fell 0.2% while the Shanghai Composite was down 0.1%.
Thursday’s solid June US labour report showed 288,000 jobs were created last month while the unemployment rate dropped to 6.1% from 6.3%. US markets are back in business Monday following Friday’s public holiday to mark Independence Day.
Other than earnings kicking off this week, we have meeting minutes from the Federal Reserve. Closer to home, the Bank of England are meeting to decide on policies this Thursday. Meanwhile, China will release a number of key economic data releases such as inflation, retail sales and trade data, all due later this week. Tuesday sees some key manufacturing and industrial output figures out from the UK.
European stock markets start the week on a subdued note, with major benchmark indices on the soft-side following weakness in Asian markets overnight. Early in Europe on Monday, the Stoxx Europe 600 Index was lower by 0.1% while the FTSE100 index in London was down by 0.2%. Futures on the S&P500 Index slid 0.1% while the MSCI Asia Pacific Index dropped 0.2%.
The rally inspired by the US jobs data has faded with traders now looking ahead to a financial report from Alcoa, the US aluminium giant which unofficially kicks off the second quarter earnings season after the closing bell on Tuesday.
Data this morning has disappointed markets with German industrial output falling 1.8% between April and May, significantly below market expectations of no change and a big miss from April’s 0.2% reading. This reading from Germany is in line with the poor data reports out of the European power house in recent weeks in areas such as unemployment data, business sentiment and factory orders. In response to the poor German data, the euro fell against the US dollar to $1.3575, down from around $1.3595. The common currency also weakened against the yen to Y138.70 from Y138.76. The US dollar continues to strengthen while the Japanese yen was 0.1% weaker against the dollar at Y102.2.
Asian markets fell from six-year highs overnight as the better US jobs data was brushed aside in favour of an anxious tone ahead of the start of earnings season. Japan’s Nikkei 225 fell by 0.5% while Hong Kong’s Hang Seng index was broadly flat. Sydney’s S&P/ASX 200 fell 0.2% while the Shanghai Composite was down 0.1%.
Thursday’s solid June US labour report showed 288,000 jobs were created last month while the unemployment rate dropped to 6.1% from 6.3%. US markets are back in business Monday following Friday’s public holiday to mark Independence Day.
Other than earnings kicking off this week, we have meeting minutes from the Federal Reserve. Closer to home, the Bank of England are meeting to decide on policies this Thursday. Meanwhile, China will release a number of key economic data releases such as inflation, retail sales and trade data, all due later this week. Tuesday sees some key manufacturing and industrial output figures out from the UK.
Related Posts: