Notes/Observations
- Global markets rally worldwide despite continued acceleration in Covid-19
- Focus for the week turns to earnings, with many of the major banks reporting this week -Gold gains, WTI drops back below $40/bbl
Asia:
- Asian Indices rise, bouncing back from Friday’s losses;
- US said to consider ‘limited’ options to deal with China over Hong Kong
Coronavirus:
- Florida region posts highest single day recorded for Covid-19 cases as US posts third day of 60K+ cases
- World Health Organisation (WHO) reports record increase in global Covid-19 cases on July 12th
- (RU) Russia reports new coronavirus cases +6,537 to total 733,699 v 727,162 d/d (+0.9% v +0.9% d/d)
Europe:
- German Economy report expects positive GDP only from Q3, Economic recovery is only at the beginning
- US to issue 25% tariff on $1.3B of French goods in retaliation for digital tax; the new duties won’t be imposed for 6 months – press (from July 10th)
Americas:
- Analog Devices said to be close to an all stock deal to acquire Maxim in a >$17B deal as M&A activity begins to return
Energy:
- Saudi ARAMCO said to cut Aug allocation of Arab heavy medium crude oil for multiple refiners in Asia – financial press
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
- Indices [Stoxx600 +0.50% at 368.66, FTSE +0.89% at 6,149.54, DAX +0.86% at 12,741.80, CAC-40 +0.58% at 4,999.46, IBEX-35 +0.71% at 7,373.00, FTSE MIB +0.17% at 19,801.50, SMI +0.12% at 10,241.96, S&P 500 Futures +0.34%]
- Market Focal Points/Key Themes: European indices open largely higher across the board, later retracing some of the gains as the session wore on, though remaining comfortably in the green; best performing sectors include consumer discretionary and financials; among underperformers are health care and utilities; Boohoo co-founder reportedly involved with supplier accused of underpaying workers; Italian government to make decision on Autostrade on Thursday, Conte insisting must divest from ASPI; Neles, the demerged assets of Metso, agrees to combination with Alfa Laval; Wirecard higher after agreement to sell assets in NZ and Aus; earnings expected in the upcoming US session include Pepsico
Equities
- Consumer discretionary: Atlantia [ATL.IT] -13% (concession), Ubisoft [UBI.FR] -7% (personnel changes)
- Financials: Jyske Bank [JYSK.DK] +4% (outlook)
- Industrials: Neles [NELES.FI] +36%, Alfa Laval [ALFA.SE] +5% (Neles to be acquired by Alfa Laval)
- Technology: Wirecard [WDI.DE] +3% (Australia and New Zealand entities begin sales process)
- Materials: Akzo Nobel [AKZA.NL] +5% (earnings)
Speakers
- (FR) France Finance Min Le Maire said that France must carry out pension reform, to keep jobs as a priority in stimulus plan; Said to unveil major plan for jobs for young people
- (PL) Poland President Duda won 51.21% of votes according to three exit polls, set to win presidential ballot
- (HU) Hungary Fin Min Varga: GDP may have dropped 9.9% in Q2
- (CN) China Foreign Ministry spokesperson Hua Chunying said to impose sanctions on US officials and entities over Xinjiang bill; Senator Rubio was said to be one of the official sanctioned
- (CN) China Foreign Ministry issues travel advisory for Australia
- (DE) German Health Min Spahn stated that danger of second wave is real, Germany is ready for possible second wave. Emphasized that Europe shouldn’t rely on China for medical supplies
Economic Data
- (JP) Japan May Tertiary Industry Index M/M: -2.1% v -3.7%e
- (FI) Finland May Current Account Balance: -€0.6B v -€0.2B prior
- (SE) Sweden July SEB Swedish Housing-Price Indicator: +24 v -23 prior
- (DE) Germany Jun Wholesale Price Index M/M: +0.6% v -0.6% prior; Y/Y: -3.3% v -4.3% prior
- (ES) Spain May House transactions Y/Y: -53.7% v -39.2% prior
- (TR) Turkey May Current Account Balance: -$3.8B v -$3.7Be
- (TR) Turkey May Industrial Production M/M: 17.4% v 10.6%e; Y/Y: -19.9% v -24.0%e
Fixed Income Issuance
- (PH) Philippines sells PHP20B vs. PHP20B indicated in 3-month, 6-month and 12-month bills
Looking Ahead
- 06:00 (IT) Ireland May Trade Balance: No est v €5.8B prior
- 06:00 (IL) Israel Jun Trade Balance: No est v -$1.1B prior
- 07:25 (BR) Brazil Central Bank Weekly Economists Survey
- 07:30 (TR) Turkey Central Bank TCMB Survey of Expectations: Next 12 Month: No est v 9.0% prior
- 08:00 (IN) India Jun CPI Y/Y: 5.3%e (**Note: past two months have not been fully released)
- 08:00 (UK) Daily Baltic Dry Bulk Index
- 14:00 (US) Jun Monthly Budget Statement: No est v -$398.9B prior
- 16:00 (US) Weekly Crop Progress Report
- 17:00 (NZ) New Zealand Jun House Sales Y/Y: No est v -46.6% prior
