Futures are lower in pre market trading, setting up a second straight day of losses. As markets come off a winning week, investors are wary with companies due to report quarterly results that will be affected by surging inflation, volatile energy markets and continued supply-chain difficulties. “Companies are getting squeezed at all sides, they’re getting squeezed on cost of goods and the wages and all things that go into input from our manufacturing goals or services,” Marathon Asset Management’s Bruce Richards told CNBC’s “Closing Bell” on Monday.
OPEC is forecasting world oil demand will continue to rise next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth. In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said it expects world oil demand to rise by 2.7 million barrels per day (bpd) in 2023. This year’s growth forecast was left unchanged at 3.36 million bpd.
CANADIAN CHATTER
NEWS
Bank of Canada is expected to see its biggest interest rate increase since 1998 this week, pushing borrowing costs higher in an effort to calm inflation expectations and slow the pace of consumer price growth. Consensus among investors and Bay Street economists is that the BoC will raise its benchmark rate by three-quarters of a percentage point. That would be three times the size of a typical interest rate hike and push the bank’s policy rate well above the prepandemic level.
OPEC forecasts slower oil demand growth in 2023
OPEC forecast that world oil demand will rise further next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth.
Spark New Zealand sells 70% stake in towers business for $550 million
Telecom firm Spark New Zealand said it will sell a 70% stake in its towers business for $550.2 million to Canadian investment firm Ontario Teachers’ Pension Plan Board.
OPEC forecast that world oil demand will rise further next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth.
Spark New Zealand sells 70% stake in towers business for $550 million
Telecom firm Spark New Zealand said it will sell a 70% stake in its towers business for $550.2 million to Canadian investment firm Ontario Teachers’ Pension Plan Board.
The international gold industry is coming back for its 10th edition – the Dubai Precious Metals Conference. This milestone event will commence 22 November 2022, in Dubai and will convene industry leaders and experts from around the globe.
PRE-OPEN
Futures for Canada’s main stock index fell on lower oil prices as renewed COVID-19 curbs in China, and fears of a global recession weighed on fuel demand outlook. Wall Street futuresslipped as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. European equities were weaker, weighed by energy supply crunch concerns. Japan’s Nikkei and Chinese equities closed lower as rising domestic cases of COVID-19 in respective countries raised worries of an economic slowdown. Gold prices strengthened, while the U.S. dollar jumped to a 20-year high against the euro on safe-haven demand.
STOCKS
PRE-OPEN
Futures for Canada’s main stock index fell on lower oil prices as renewed COVID-19 curbs in China, and fears of a global recession weighed on fuel demand outlook. Wall Street futuresslipped as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. European equities were weaker, weighed by energy supply crunch concerns. Japan’s Nikkei and Chinese equities closed lower as rising domestic cases of COVID-19 in respective countries raised worries of an economic slowdown. Gold prices strengthened, while the U.S. dollar jumped to a 20-year high against the euro on safe-haven demand.
STOCKS
•South Africa’s Gold Fields fielded questions from sceptical investors after the company promised higher dividends and a Toronto Stock Exchange (TSX) listing to sweeten its proposed takeover of Canada’s Yamana Gold.
•Canada’s Suncor Energy faces a long slog to fix its poor safety record and regain investor confidence, analysts said, after Chief Executive Mark Little resigned following another worker fatality at a company site.
• BQE Water Inc. (TSXV:BQE), a leader in the management and treatment of mine impacted water, is reporting the receipt of an annual cash dividend of $2.6 M ($13.5 M RMB) from its China joint venture operations. The dividend represents BQE Water’s 50% share of the joint venture profit earned and reported in its consolidated financial statements for 2021.
Revenues from the joint venture operations are generated from sales of copper recovered during the treatment of mine impacted water at market prices. While dividends have been received annually since 2012, the amount for 2021 is notable as it is 160% higher than the $1 M of recent years. The dividend was also received ahead of schedule, as distribution is typically made in the fourth quarter.
• Diamond Fields Resources Inc. (TSXV:DFR), is pleased to announce that it has received final approval from the TSX Venture Exchange (“TSX-V”) for its acquisition of Moydow Holdings Limited (“Moydow”) (the “Transaction”).
• Kenorland Minerals Ltd. (TSXV: KLD) is pleased to announce final drill results from the 2022 winter drill program at the Frotet Project, located in northern Quebec and held under joint venture with Sumitomo Metal Mining Canada Ltd.. Assays from the remaining 5 of 25 drill holes completed, including 2,840 meters of the 10,880 meter program are reported herein. The Company is also pleased to provide an update on its summer drill program and exploration activities currently underway at the Project.
• Luminex Resources Corp. (TSXV: LR) would like to provide an update on its Tarqui project, where BHP Group Limited (“BHP”) has completed its Phase 2 drill program that commenced in late 2021, pursuant to a July 2019 earn-in and joint venture agreement. BHP completed the current drill program in June 2022 and has received assays from seven of ten holes. Drilling at the project has now totaled 6,862 metres, over thirteen drill holes between the Phase 1 and Phase 2 programs.
• UGE International ltd. (TSXV: UGE), a leader in the commercial and community solar sector, announces milestones and business updates for the second quarter ending June 30, 2022. In the second quarter, the Company’s project backlog (stages 3.1-5) increased over 35% and now totals 195MW, versus 144MW at the end of the prior quarter. The 51MW increase in one quarter is the largest in UGE’s history. In total, UGE has 381MW of projects in development and a pre-development pipeline (stages 1 and 2) in excess of 900MW. Backlog growth included the Company’s first community solar project in Delaware, thirteen storage and solar-plus-storage projects in Massachusetts, and two new industrial rooftop projects in metro New York City. The New York projects are with long-term partner Wildflower Ltd.
•Westport Fuel Systems Inc. (TSX: WPRT), is trading higher pre-open up 8.9%. The maker of alternative energy systems used by automotives says it has been awarded a program to develop and supply liquefied natural gas (LNG) systems for a number of vehicle applications for a global OEM.
• Rogers Communications Inc: Shares of Rogers slipped as analysts voiced concerns over increased risk to the Canadian telecom operator’s C$20 billion deal for rival Shaw Communications following last week’s 19-hour outage.
Canadian Industry Minister François-Philippe Champagne on Monday said he has directed telecom companies to assist each other in emergencies and develop communication protocols to keep people better informed after Friday’s massive outage at Rogers Communications. The Rogers network outage disrupted nearly every aspect of daily life, cutting banking, transport and government access for millions, and hitting the country’s cashless payments system and Air Canada’s call center. “So in essence, what I’ve demanded and expect the telecom companies in Canada is to enter to a formal agreement within 60 days up to date, at maximum,” the minister said in a call with reporters on Monday. The minister also told Rogers to compensate its customers for the outage that it blamed on a router malfunction after maintenance work.
ECONOMIC EVENTS
No economic indicators scheduled
ECONOMIC EVENTS
No economic indicators scheduled
COMPANIES REPORTING
July 12:
No major companies scheduled
CORPORATE EVENTS
No major events scheduled
EX-DIVIDENDS
No major ex-dividends
WORLD MARKETS
(7:30am EST)
US CHATTER
NEWS/COMPANIES
PepsiCo lifts sales forecast on firm demand for pricier snacks, sodas
PepsiCo raised its full-year revenue forecast, as consumers bought more sodas and snacks even in the face of rising prices.
Twitter hits back at Musk, says no deal obligations breached
Twitter fired back at Elon Musk on Monday, accusing the world’s richest person of “knowingly” breaching an agreement to buy the social media firm, days after the Tesla chief sought to back out of the $44 billion deal.
Demand, costs in focus as U.S. airlines report earnings
Major U.S. airlines are poised to post their strongest earnings since the start of the pandemic when they report quarterly results starting on Wednesday.
President Biden faces deadline in U.S. railroad labor standoff
U.S. President Joe Biden faces a deadline next week to intervene in nationwide U.S. railroad labor talks covering 115,000 workers, or open the door to a potential strike or lockout that could threaten an already fragile economy and choke supplies of food and fuel.
Bill Ackman to wind up SPAC, return $4 billion to investors
Billionaire investor William Ackman, who had raised $4 billion in the biggest-ever special purpose acquisition company (SPAC), told investors he would be returning the sum after failing to find a suitable target company to take public through a merger.
PRE-OPEN
Wall Street futures fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. European equities were down, weighed by energy supply crunch concerns. Japan’s Nikkei and Chinese equities closed lower as rising domestic cases of COVID-19 in respective countries raised worries of an economic slowdown. Gold prices strengthened, while the dollar jumped to a 20-year high against the euro on safe-haven demand. Oil prices plunged as renewed COVID-19 curbs in China weighed on fuel demand outlook.
STOCKS
• PepsiCo Inc: The company raised its full-year revenue forecast, as consumers bought more sodas and snacks even in the face of rising prices. PepsiCo’s overall net revenue rose 5.2% to $20.23 billion in the second quarter ended June 11, beating analysts’ estimates of $19.51 billion, according to IBES data from Refinitiv. Organic revenue at the company’s Frito-Lay North America unit rose 14% in the reported quarter, with its Doritos, Cheetos and Ruffles snack brands each delivering double-digit net revenue growth. Organic revenue at PepsiCo’s North America beverage unit rose 9%. On an adjusted basis, the company earned $1.86 per share, compared with estimates of $1.74 per share. PepsiCo said it expects fiscal 2022 organic revenue to rise 10%, compared to a previous forecast of an 8% increase. The beverage giant also maintained its full-year earnings growth forecast of 8% even as surging commodity and freight costs continue to bite into margins.
• Alibaba Group Holding Ltd: The company’s supermarket chain Freshippo is seeking to raise funds at a valuation of about $6 billion, much lower than a hoped-for valuation of up to $10 billion earlier this year, three people familiar with the matter told Reuters. The company had to cut its valuation expectations after China’s COVID-19 restrictions, in particular a draconian lockdown in the economic hub of Shanghai, badly dented business, they said. Investors are also sceptical about whether loss-making Freshippo can keep growing and turn a profit anytime soon given the company’s bleak outlook as the world’s second-largest economy continues to pursue a strict policy of stamping out COVID-19 cases, said two of the people. The supermarket chain, known as Hema in Chinese, is aiming to raise $400 million to $500 million from outside investors, two of the sources said.
• Chevron Corp, ExxonMobil Corp & Valero Energy Corp: The United States on Monday said 14 companies had been awarded contracts for the latest sale of oil from the Strategic Petroleum Reserve as part of the Biden administration’s efforts to ease oil prices boosted by reactions to Russia’s invasion of Ukraine. The administration said in late March it would release a record 1 million barrels of oil per day of oil for six months from the SPR, held in hollowed-out salt caverns on the coasts of Louisiana and Texas. Chevron, ExxonMobil and Valero Energy will be among the firms to take delivery of crude oil between Aug. 16 and Sept. 30, the Energy Department said in a release.
• Gap Inc: The company said on Monday that Chief Executive Sonia Syngal will step down just over two years into the role, as the apparel seller wrestles with weak demand for its casual attire and a slump in its stock price. It also warned that margins would stay under pressure in the second quarter as costs spiral, sending shares of the company down after hours. Executive Chairman Bob Martin will step in as interim CEO, while ex-Walmart Canada top boss Horacio Barbeito has been tapped to lead Old Navy through tough times for the company’s biggest brand. “I think it’s a necessary change given Gap’s recent problems. The addition of a permanent CEO for Old Navy is positive as Gap’s needs to stabilize this part of the business,” Morningstar analyst David Swartz said.
• General Electric Co: Arafura Resources said it will supply neodymium-praseodymium (NdPr) to France-based turbine manufacturing division of General Electric amid a global push to transition to clean energy. Under the memorandum of understanding (MoU), GE Renewable Energy will purchase NdPr from the miner’s flagship Nolans project in central Australia to manufacture offshore wind turbines. The deal was unveiled during the Sydney Energy Forum earlier in the day, where Australia joined the Mineral Security Partnership, along with a host of nations including the United States in a bid to secure global supply chains for critical minerals such as NdPr, which are crucial for the transition to clean energy technology.
• MercadoLibre Inc & Goldman Sachs Group Inc: Argentine online marketplace MercadoLibre said on Monday it received a private financing line of $233 million from Goldman Sachs to expand its credit offer in Brazil and Mexico. The company intends to, through its lending unit Mercado Credito, increase its loan offers to individuals and small and medium-sized companies in both countries. Of the total figure, $106 million will be destined for Brazil and $127 million for Mexico, MercadoLibre said in a statement.
• Peloton Interactive Inc: The exercise equipment maker said it will cease to manufacture its bike and tread products in-house and hire a third-party manufacturer in an effort to simplify its supply chain and optimize its cost structure. Shares of Peloton were down premarket after the company said Taiwan-based Rexon will become the primary manufacturer of the hardware for Peloton’s bike and tread product lines. Peloton will be suspending operations at its Tonic Fitness Technology facility through the remainder of 2022, the company said.
• Walmart Inc & Canoo Inc: Walmart has signed a deal with electric vehicle maker Canoo to purchase delivery vehicles as part of the U.S. retailer’s goal to achieve zero emissions by 2040. Walmart will buy 4,500 EVs from Canoo with the option to purchase up to 10,000 units to boost its online business, the companies said in a statement. Financial terms of the deal were not disclosed. The deal announced also includes Canoo’s fully electric Lifestyle Delivery Vehicle (LDV). The EV maker anticipates starting production of the LDVs beginning in Q4, 2022, according to the statement. “By continuing to expand our last mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low,” said David Guggina, senior vice president of innovation and automation at Walmart U.S.
• Walt Disney Co: The company announced a deal on Monday that will bring a documentary series and concert featuring K-pop band BTS to the company’s streaming services. The series will debut next year and include music and footage of the South Korean group from the past nine years. Called “BTS Monuments: Beyond the Star,” it will showcase “the daily lives, thoughts and plans” of the group’s members “as they prepare for their second chapter,” Disney said in a statement. Disney said the programming would be released globally on its streaming services, including on Disney+. Its other streaming platforms include Hulu and Disney+Hotstar. The company did not say which services would carry the programming in which markets.
ECONOMIC EVENTS
PepsiCo lifts sales forecast on firm demand for pricier snacks, sodas
PepsiCo raised its full-year revenue forecast, as consumers bought more sodas and snacks even in the face of rising prices.
Twitter hits back at Musk, says no deal obligations breached
Twitter fired back at Elon Musk on Monday, accusing the world’s richest person of “knowingly” breaching an agreement to buy the social media firm, days after the Tesla chief sought to back out of the $44 billion deal.
Demand, costs in focus as U.S. airlines report earnings
Major U.S. airlines are poised to post their strongest earnings since the start of the pandemic when they report quarterly results starting on Wednesday.
President Biden faces deadline in U.S. railroad labor standoff
U.S. President Joe Biden faces a deadline next week to intervene in nationwide U.S. railroad labor talks covering 115,000 workers, or open the door to a potential strike or lockout that could threaten an already fragile economy and choke supplies of food and fuel.
Bill Ackman to wind up SPAC, return $4 billion to investors
Billionaire investor William Ackman, who had raised $4 billion in the biggest-ever special purpose acquisition company (SPAC), told investors he would be returning the sum after failing to find a suitable target company to take public through a merger.
PRE-OPEN
Wall Street futures fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. European equities were down, weighed by energy supply crunch concerns. Japan’s Nikkei and Chinese equities closed lower as rising domestic cases of COVID-19 in respective countries raised worries of an economic slowdown. Gold prices strengthened, while the dollar jumped to a 20-year high against the euro on safe-haven demand. Oil prices plunged as renewed COVID-19 curbs in China weighed on fuel demand outlook.
STOCKS
• PepsiCo Inc: The company raised its full-year revenue forecast, as consumers bought more sodas and snacks even in the face of rising prices. PepsiCo’s overall net revenue rose 5.2% to $20.23 billion in the second quarter ended June 11, beating analysts’ estimates of $19.51 billion, according to IBES data from Refinitiv. Organic revenue at the company’s Frito-Lay North America unit rose 14% in the reported quarter, with its Doritos, Cheetos and Ruffles snack brands each delivering double-digit net revenue growth. Organic revenue at PepsiCo’s North America beverage unit rose 9%. On an adjusted basis, the company earned $1.86 per share, compared with estimates of $1.74 per share. PepsiCo said it expects fiscal 2022 organic revenue to rise 10%, compared to a previous forecast of an 8% increase. The beverage giant also maintained its full-year earnings growth forecast of 8% even as surging commodity and freight costs continue to bite into margins.
• Alibaba Group Holding Ltd: The company’s supermarket chain Freshippo is seeking to raise funds at a valuation of about $6 billion, much lower than a hoped-for valuation of up to $10 billion earlier this year, three people familiar with the matter told Reuters. The company had to cut its valuation expectations after China’s COVID-19 restrictions, in particular a draconian lockdown in the economic hub of Shanghai, badly dented business, they said. Investors are also sceptical about whether loss-making Freshippo can keep growing and turn a profit anytime soon given the company’s bleak outlook as the world’s second-largest economy continues to pursue a strict policy of stamping out COVID-19 cases, said two of the people. The supermarket chain, known as Hema in Chinese, is aiming to raise $400 million to $500 million from outside investors, two of the sources said.
• Chevron Corp, ExxonMobil Corp & Valero Energy Corp: The United States on Monday said 14 companies had been awarded contracts for the latest sale of oil from the Strategic Petroleum Reserve as part of the Biden administration’s efforts to ease oil prices boosted by reactions to Russia’s invasion of Ukraine. The administration said in late March it would release a record 1 million barrels of oil per day of oil for six months from the SPR, held in hollowed-out salt caverns on the coasts of Louisiana and Texas. Chevron, ExxonMobil and Valero Energy will be among the firms to take delivery of crude oil between Aug. 16 and Sept. 30, the Energy Department said in a release.
• Gap Inc: The company said on Monday that Chief Executive Sonia Syngal will step down just over two years into the role, as the apparel seller wrestles with weak demand for its casual attire and a slump in its stock price. It also warned that margins would stay under pressure in the second quarter as costs spiral, sending shares of the company down after hours. Executive Chairman Bob Martin will step in as interim CEO, while ex-Walmart Canada top boss Horacio Barbeito has been tapped to lead Old Navy through tough times for the company’s biggest brand. “I think it’s a necessary change given Gap’s recent problems. The addition of a permanent CEO for Old Navy is positive as Gap’s needs to stabilize this part of the business,” Morningstar analyst David Swartz said.
• General Electric Co: Arafura Resources said it will supply neodymium-praseodymium (NdPr) to France-based turbine manufacturing division of General Electric amid a global push to transition to clean energy. Under the memorandum of understanding (MoU), GE Renewable Energy will purchase NdPr from the miner’s flagship Nolans project in central Australia to manufacture offshore wind turbines. The deal was unveiled during the Sydney Energy Forum earlier in the day, where Australia joined the Mineral Security Partnership, along with a host of nations including the United States in a bid to secure global supply chains for critical minerals such as NdPr, which are crucial for the transition to clean energy technology.
• MercadoLibre Inc & Goldman Sachs Group Inc: Argentine online marketplace MercadoLibre said on Monday it received a private financing line of $233 million from Goldman Sachs to expand its credit offer in Brazil and Mexico. The company intends to, through its lending unit Mercado Credito, increase its loan offers to individuals and small and medium-sized companies in both countries. Of the total figure, $106 million will be destined for Brazil and $127 million for Mexico, MercadoLibre said in a statement.
• Peloton Interactive Inc: The exercise equipment maker said it will cease to manufacture its bike and tread products in-house and hire a third-party manufacturer in an effort to simplify its supply chain and optimize its cost structure. Shares of Peloton were down premarket after the company said Taiwan-based Rexon will become the primary manufacturer of the hardware for Peloton’s bike and tread product lines. Peloton will be suspending operations at its Tonic Fitness Technology facility through the remainder of 2022, the company said.
• Walmart Inc & Canoo Inc: Walmart has signed a deal with electric vehicle maker Canoo to purchase delivery vehicles as part of the U.S. retailer’s goal to achieve zero emissions by 2040. Walmart will buy 4,500 EVs from Canoo with the option to purchase up to 10,000 units to boost its online business, the companies said in a statement. Financial terms of the deal were not disclosed. The deal announced also includes Canoo’s fully electric Lifestyle Delivery Vehicle (LDV). The EV maker anticipates starting production of the LDVs beginning in Q4, 2022, according to the statement. “By continuing to expand our last mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low,” said David Guggina, senior vice president of innovation and automation at Walmart U.S.
• Walt Disney Co: The company announced a deal on Monday that will bring a documentary series and concert featuring K-pop band BTS to the company’s streaming services. The series will debut next year and include music and footage of the South Korean group from the past nine years. Called “BTS Monuments: Beyond the Star,” it will showcase “the daily lives, thoughts and plans” of the group’s members “as they prepare for their second chapter,” Disney said in a statement. Disney said the programming would be released globally on its streaming services, including on Disney+. Its other streaming platforms include Hulu and Disney+Hotstar. The company did not say which services would carry the programming in which markets.
ECONOMIC EVENTS
None
COMPANIES REPORTING
None Reporting
CORPORATE EVENTS (Eastern Time)
0815 PepsiCo Inc: Q2 earnings conference call
0900 TransDigm Group Inc: Annual Shareholders Meeting
1100 AZZ Inc: Annual Shareholders Meeting
1100 Omega Flex Inc: Annual Shareholders Meeting
1130 VMware Inc: Annual Shareholders Meeting
1200 CS Disco Inc: Annual Shareholders Meeting
1200 PriceSmart Inc: Q3 earnings conference call
1300 SoFi Technologies Inc: Annual Shareholders Meeting
1400 ChargePoint Holdings Inc: Annual Shareholders Meeting
1530 Virtus Dividend Interest & Premium Strategy Fund: Annual Shareholders Meeting
COMPANIES REPORTING
None Reporting
CORPORATE EVENTS (Eastern Time)
0815 PepsiCo Inc: Q2 earnings conference call
0900 TransDigm Group Inc: Annual Shareholders Meeting
1100 AZZ Inc: Annual Shareholders Meeting
1100 Omega Flex Inc: Annual Shareholders Meeting
1130 VMware Inc: Annual Shareholders Meeting
1200 CS Disco Inc: Annual Shareholders Meeting
1200 PriceSmart Inc: Q3 earnings conference call
1300 SoFi Technologies Inc: Annual Shareholders Meeting
1400 ChargePoint Holdings Inc: Annual Shareholders Meeting
1530 Virtus Dividend Interest & Premium Strategy Fund: Annual Shareholders Meeting
EUROPEAN CHATTER
MARKET
The Euro for all intensive purposes traded at parity with the U.S. dollar as stock markets fell on the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. This reflects the dire economic circumstances in the euro zone. The bloc is struggling with inflation as well as with an energy shock stemming from Russia’s war on Ukraine. The European Central Bank is in a difficult spot, analysts say. “You could argue that the ECB has been rather late to the party both in terms of ending their bond purchases but also considering monetary policy tightening,” Jeremy Stretch, an analyst at CIBC Capital Market, told CNBC’s “Street Signs Europe.”
The Euro for all intensive purposes traded at parity with the U.S. dollar as stock markets fell on the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. This reflects the dire economic circumstances in the euro zone. The bloc is struggling with inflation as well as with an energy shock stemming from Russia’s war on Ukraine. The European Central Bank is in a difficult spot, analysts say. “You could argue that the ECB has been rather late to the party both in terms of ending their bond purchases but also considering monetary policy tightening,” Jeremy Stretch, an analyst at CIBC Capital Market, told CNBC’s “Street Signs Europe.”
Euro STOXX 50 futures were down 25 points at 3,436, FTSE futures lost 31 points to 7,104, and German DAX futures were 91 points lower at 12,727, by 0430 GMT.
Asian shares fell, weighed down by the prospect of further monetary policy tightening by central banks, China’s renewed COVID outbreak and Europe’s energy shortage, which also left the euro a whisker from parity with the safe haven dollar.
Oil prices fell as fresh COVID-19 curbs in China, the world’s biggest crude importer, and fears of a global economic slowdown weighed on the fuel demand outlook.
Asian shares fell, weighed down by the prospect of further monetary policy tightening by central banks, China’s renewed COVID outbreak and Europe’s energy shortage, which also left the euro a whisker from parity with the safe haven dollar.
Oil prices fell as fresh COVID-19 curbs in China, the world’s biggest crude importer, and fears of a global economic slowdown weighed on the fuel demand outlook.
MARKETS AS OF 0430 GMT
S&P 500 Index Mini Futures: 3,834.00; down 0.59%; 22.75 points
DJIA Mini Futures: 30,976.00; down 0.53%; 164 points
Nikkei: 26,294.37; down 1.93%; 517.93 points
MSCI Asia, Ex-JP: 508.44; down 1.26%; 6.51 points
EUR/USD: $1.0013; down 0.28%; 0.0028 point
GBP/USD: $1.1865; down 0.22%; 0.0026 point
USD/JPY: 137.29 yen; down 0.11%; 0.15 point
Spot Gold: $1,728.83; down 0.28%; $4.84
U.S. Crude: $102.41; down 1.61%; $1.68
Brent Crude: $105.48; down 1.51%; $1.62
10-Yr U.S. Treasury Yield: 2.9614%; down 0.028 point
10-Yr Bund Yield: 1.2450%; flat
WORLD NEWS
Britain‘s new prime minister will be announced on Sept. 5, with the first votes to begin eliminating candidates in a crowded and increasingly unpredictable and divisive contest to replace Boris Johnson coming this week.
Twitter Inc fired back at Elon Musk on Monday, accusing the world’s richest person of “knowingly” breaching an agreement to buy the social media firm, days after the Tesla Inc chief sought to back out of the $44 billion deal.
Second quarter profits at big U.S. banks are expected to fall sharply from a year earlier on increased loan loss reserves, as the pandemic recovery gives way to a possible recession.
COMPANY NEWS
The French government is poised to pay more than 8 billion euros to bring power giant EDF back under full state control, two sources with knowledge of the matter said, adding the aim is to complete the deal in the fourth quarter.
German chemicals giant BASF said its operating income in the second quarter came in significantly above analyst expectations as it passed on higher raw material costs and benefited from a strong dollar.
LVMH‘s retail beauty brand Sephora is selling its Russian subsidiary to the local general manager of the chain, the French company said on Monday, joining a flood of Western businesses leaving the country.
COMPANY ANNOUNCEMENTS
Alstom SA Annual Shareholders Meeting
Burberry Group PLC Annual Shareholders Meeting
British Land Company PLC Annual Shareholders Meeting
Industria de Diseno Textil SA Annual Shareholders Meeting
Nordic Semiconductor ASA Q2 2022 Earnings Release
Tryg A/S Q2 2022 Earnings Release
ECONOMIC EVENTS (GMT)
0900 Germany ZEW Economic Sentiment for July: Expected -38.3; Prior -28.0
0900 Germany ZEW Current Conditions for July: Expected -34.5; Prior -27.6
0900 Euro Zone ZEW Survey Expectations for July: Prior -28.0
1000 Portugal CPI mm for June: Prior 0.8%
1000 Portugal CPI yy for June: Prior 8.7%
1000 Portugal CPI NSA for June: Prior 113.610
SOURCE (not limited too) Reuters, CNBC, Kitco, Refinitiv, BBC, Globe & Mail
