Untied States:
U.S. Futures Mixed Ahead of Earnings; Bonds Gain: Markets Wrap
“U.S. futures were mixed as investors await the second-quarter earnings season starting this week in order to gauge whether corporate profitability can support equity valuations. Treasury yields dropped. Contracts on the S&P 500 dropped, while those on the Nasdaq 100 rose. The Stoxx Europe 600 fluctuated before turning higher, with gains for real estate and utilities offsetting losses for commodity producers and travel companies. Atos SE plunged more than 18% after the French tech-services firm lowered profit targets.”
Europe:
ECB’s Villeroy Signals No Urgency to Settle Post-Crisis Stimulus
“European Central Bank policy maker Francois Villeroy de Galhau signaled that he’s in no rush to agree on new measures for supporting the euro-area economy to succeed the current emergency tools. After the ECB concluded an 18-month strategy review last week, raising its inflation goal and deciding to take issues such as climate change and owner-occupied housing costs into consideration, investors are focused on the implications for monetary stimulus. The next Governing Council decision is on July 22.”
Asia:
After China’s Surprise Bank Reserve Ratio Cut, Analysts Look for More Support Signs
“The People’s Bank of China’s surprise cut in lenders’ reserve required ratio has analysts speculating on what further steps are coming to bolster the economy as the recovery gradually slows. Most economists don’t see Friday’s move as the start of a new easing cycle or a signal that further monetary stimulus is on the cards. Rather, the market is now turning its attention to liquidity operations, bond sales and fiscal spending to try and work out how authorities will manage the economy for the rest of the year.”
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.