The S&P 500 Futures are under pressure after they held up at recent highs yesterday. The treasury yields rose again – 10-year Treasury yield advanced to 0.716% – after the record 30-year US bond auction saw weak demand, raising fears that debt market may not absorb additional debt easily.
Later today, the U.S. Commerce Department will release July retail sales (+2.1% on month expected) and June business inventories (-1.1% on month expected). The Federal Reserve will report July industrial production (+3.0% on month expected) and capacity utilization (70.3% expected). The University of Michigan will publish its Consumer Sentiment Index for August (72.0 expected).
European indices are facing a strong down move. The European Commission has reported 2Q GDP at -12.1% (vs -3.6% in 1Q) and June trade balance at 17.1 billion euros surplus (vs 14.5 billion euros surplus expected). France’s INSEE has posted final readings of July CPI at +0.8% on year, as expected.
Asian indices closed in the green except the Hong Kong HSI. Earlier today, official data showed that China’s industrial production grew 4.8% on year in July (+5.1% expected) while retail sales dropped 1.1% (+0.1% expected).
WTI Crude Oil futures are turning down after the International Energy Agency lowered its 2020 global oil demand forecast to 91.1 million barrels per day, reflecting a fall of 8.1 million barrels per day as compared with 2019.
Gold continues to consolidate, close to its first weekly decline after posting record highs.
Gold fell 7.32 dollars (-0.37%) to 1946.39 dollars.
AUD/USD fell 3pips to 0.7146. The pair consolidates on bad China data after a seven-week winning streak.
U.S. Equity Snapshot
Applied Materials (AMAT), the global leader in materials engineering solutions for the semiconductor industry, reported third quarter adjusted EPS up to 1.06 dollar from 0.74 dollar a year earlier on sales up to 4.39 billion dollars from 3.6 billion dollars a year ago. Those figures beat estimates.
Source: TradingView, GAIN Capital
Tesla (TSLA), the electric-vehicle maker, was upgraded to “equal-weight” from “underweight” at Morgan Stanley.
QIAGEN (QGEN), a biotech company specialized in applications in life sciences and molecular diagnostics, was raised to “buy” from “hold” at Deutsche Bank.