Markets

Global Equity Gains Extend on Earnings Results: Markets Wrap

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Stocks in Japan pointed to a higher start and U.S. equity-index futures climbed after results from Apple Inc. to Mitsubishi UFJ Financial Group Inc. buoyed sentiment.

Nasdaq futures advanced after Apple projected revenue in the current quarter that topped analysts’ estimates, while shares of Mitsubishi UFJ and Honda Motor Co. posted gains in New York trading following their results. Treasuries climbed with the dollar as data gave mixed signals on the strength of American economic growth. A drop in the Bloomberg Commodity Index may weigh on raw-material producers in Asia after a stellar run.

What Tim Cook had to say about Apple’s earnings.

Source: Bloomberg

Company earnings are supporting the case for a firm global economy that’s propelling equity gauges to new highs. Still, with many stock valuations well above average, monetary policy in the U.S. tightening and Donald Trump’s administration mired in controversy, there remains a degree of caution in markets.

Terminal user can read more in our Markets Blog here.

Over in India, the central bank is expected to ease policy and announce steps to absorb excess bank liquidity after consumer prices slowed sharply. Policy makers will probably cut the benchmark rate by 25 basis points to 6 percent, economists said.

Here are some key upcoming events:

  • Brazil’s Congress votes on Wednesday on whether to put President Michel Temer on trial.
  • Bank of England Governor Mark Carney may signal a more hawkish tone at its quarterly Inflation Report on Thursday. The central bank will likely keep rates on hold.
  • U.S. jobs data on Friday will probably show employers added about 180,000 workers in July.

Here are the main moves in markets:

Stocks

  • Nasdaq 100 futures climbed 0.7 percent as of 7:13 a.m. in Tokyo. Apple shares rose more than 6 percent in after-hours trading. S&P 500 e-mini futures were up 0.1 percent.
  • Futures on Japan’s Nikkei 225 Stock Average gained 0.4 percent. Contracts on Australia’s S&P/ASX 200 Index, Hong Kong’s Hang Seng Index and South Korea’s Kospi index were flat.
  • The MSCI All-Country World Index rose 0.5 percent to close at an all-time high on Tuesday.

Bonds

  • The yield on 10-year Treasuries fell four basis points to 2.25 percent on Tuesday.
  • Germany’s 10-year yield dropped five basis points to 0.49 percent, the lowest in a month.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.2 percent on Tuesday.
  • The euro bought $1.1805 after slipping 0.3 percent on Tuesday.

Commodities

  • West Texas Intermediate crude retreated from above $50, falling 0.7 percent to $48.82 a barrel. The contract fell 2 percent on Tuesday, the first decline in more than a week,
    after an industry report was said to show U.S. crude inventories unexpectedly jumped.
  • The Bloomberg Commodity Index lost 1 percent on Tuesday.

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