Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Marketmind: A new sunny day, with the same old clouds

08/02/2021 | 03:25am EDT
A board shows stock information at a brokerage office in Beijing

LONDON (Reuters) - A look at the day ahead from Karin Strohecker.

It's a new week, a new month and time for a fresh start - but the problems niggling at markets this morning are still the same.

Chinese stocks' continued rebound after a selloff caused by Beijing's regulatory crackdown lifted markets across Asia. European and U.S. equity futures are also higher thanks companies' second-quarter earnings that are up 120% and 90% respectively year-on-year.

Add to that more fiscal stimulus in the United States where senators unveiled a sweeping $1 trillion infrastructure plan that could pass this week.

But releases of Asia purchasing manager indexes (PMI) show clouds on the horizon; rising input costs and a new wave of coronavirus infection overshadowed solid global demand, highlighting the fragile nature of the region's recovery.

Manufacturing activity rose in export powerhouses Japan and South Korea, but China readings confirm that growth is indeed slowing amid rising costs and extreme weather in the world's second largest economy.

China's central bank pledged over the weekend to maintain a prudent, flexible and targeted monetary policy to support growth while keeping the digital economy in check.

The growth concerns sent oil 1% lower and kept the dollar just above a one-month low.

More PMI readings are due today and Wednesday, but this week's biggest datapoint is Friday's U.S. payrolls --- the last major jobs reading available to the Fed before its Jackson Hole summit, where many expect it to say when it will start tapering bond-buying.

Then there are geopolitical tensions. The United States and Britain have pointed the finger at Iran, blaming it for last week's attack on an Israeli-managed petroleum product tanker that killed two people.

Back on the earnings front, HSBC continues the run of forecast-beating Q2 numbers, reporting first-half pretax profit that more than doubled from last year when it made huge provisions for pandemic-related bad loans.

Heineken, the world's second-largest brewer, reported first-half earnings above expectations but said the rest of the year could be less rosy given cost pressures and COVID-19.

Finally, the U.S. debt ceiling suspension expired on the weekend, forcing the Treasury into extraordinary measures to get by. Later on Monday, it will announce its overall refunding plans.

Key developments that should provide more direction to markets on Monday:

-German retail sales June

-U.S. ISM manufacturing PMI

-Auctions: 6-m and 3m t-bills

-European earnings: HSBC, Axa, Heineken, Ferrari

-U.S. earnings: Royal Caribbean (Graphic: China PMIs, https://fingfx.thomsonreuters.com/gfx/mkt/mopanmdeava/China%20PMIs.PNG)

(Reporting by Karin Strohecker; editing by Sujata Rao)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AXA 1.34% 22.675 Real-time Quote.14.65%
FERRARI N.V. -1.49% 213.17 Delayed Quote.-7.12%
HEINEKEN N.V. 0.66% 90.84 Real-time Quote.-1.07%
HUGO BOSS AG 0.83% 49.83 Delayed Quote.80.84%
MERCK KGAA 1.89% 199.45 Delayed Quote.39.51%
PROSIEBENSAT.1 MEDIA SE 1.63% 15.85 Delayed Quote.13.52%
TESCO PLC 0.63% 256 Delayed Quote.9.96%
VONOVIA SE 2.10% 53.32 Delayed Quote.-12.52%
Latest news "Economy & Forex"
09:14aCanada New House Prices Rise 0.7% in August
09:10aFITSI Earns Prestigious ANAB Accreditation under ISO/IEC 17024 for its Next Generation Federal IT Security Professional (FITSP) Cybersecurity Certification Program
09:07aFormer Fiat Chrysler chief Manley to head AutoNation
09:07aHACKERONE : Expands the Internet Bug Bounty to Improve the Collective Security of Software Supply Chains
09:04aWith Gucci bags and Dyson appliances, Evergrande wooed retail investors
09:03aCanadian dollar, TSX futures rebound after Trudeau election win
09:02aUnion Steel Minister Ram Chandra Prasad Singh Reviews Marketing Strategies of Steel CPSEs at a High Level Meeting
09:02aBEA BUREAU OF ECONOMIC ANALYSIS : U.S. Current Account Deficit Widens in Second Quarter 2021
09:00aAlyssa Gelper Joins Klingenstein Fields Advisors as a Managing Director, Senior Advisor, in New York
08:58aUK's first green gilt draws record $137 billion demand
Latest news "Economy & Forex"