Asian stocks rallied as traders flocked back into risk assets amid growing expectations that the US economy will avoid a recession. Treasuries held losses, while the yen is set for its worst week since May. Almost all major stock benchmarks gained in Asia, with a regional gauge on track for its best weekly performance in more than a year. Japanese equities rose at the expense of a weaker yen, which boosts exporters’ earnings. The currency fell 1.3% against the dollar on Thursday, and was trading around the 149 level, easing fears of a massive carry trade unwind. A slew of US data this week, from inflation to jobless claims to retail sales, has reassured investors, supporting the view that the world’s biggest economy is heading for a “Goldilocks” scenario where inflation is contained without stalling growth. Global stocks have largely erased last week’s losses, when traders were worried the Federal Reserve won’t cut rates fast enough to prevent a recession. Treasuries in Asia were steady after Thursday’s dip as signs of a resilient US economy in the latest data releases prompted traders to dial back bets for a jumbo September rate reduction. They are now pricing in less than a 30-basis point cut next month, with a total of 92 basis points of reduction expected for the remainder of 2024. As fears around the US economy eased, equities extended a rebound from last week’s meltdown that rattled global markets. The S&P 500 extended a six-day rally to 6.6% on Thursday, marking the best performance in such a span since November 2022. Walmart Inc., often seen as a barometer of growth, jumped on a solid outlook. Meanwhile, Wall Street’s “fear gauge” — the VIX — dropped around 15 after spiking to 65 last week. This rebound for US stocks from the heavy selling last week suggests that trend-following quant funds may soon return, which could provide further support to stocks. In Japan, stocks headed for their biggest weekly advance since April 2020, driven by renewed weakness for the yen. This weakness may even attract some hedge funds back to the carry trade that blew up two weeks ago. Elsewhere in Asia, China’s central bank chief pledged further measures to support the country’s economic recovery, while cautioning that it won’t adopt “drastic” measures. Meanwhile, Australian sovereign bond yields climbed Friday, partly tracking the move in Treasuries and as the nation’s central bank governor said the Reserve Bank of Australia remains some way off easing monetary policy. Alibaba Group Holding Ltd. rose as optimism over tech stocks outweighed concerns about its earnings. JD.com Inc. gained the most since March after beating net profit estimates in results released late Thursday. US officials have been trying to use higher rates to ease inflation without causing the economy to contract — a scenario known as a “soft landing.” Fed Bank of St. Louis President Alberto Musalem said the time is nearing when it will be appropriate to cut rates. His Atlanta counterpart Raphael Bostic told the Financial Times he’s “open” to a reduction in September. In commodities, gold was on track for a small weekly gain. Oil edged lower as the market weighed strong US economic data and a possible attack by Iran or its proxies on Israel against a lackluster Chinese demand outlook. US After Hours HRB +10.2% higher on earnings and dividend hike and buyback; DESP +4.3%, GLOB +3.8% also higher; AMAT -3.1% lower on earnings.
Nikkei +3.10% Hang Seng +1.88% CSI -0.04% Shanghai -0.09% Shenzen -0.09%
Eur$ 1.0980 CNH 7.1752 CNY 7.1717 JPY 148.86 GBP 1.2873 CHF 0.8712 RUB 88.8366 TRY 33.6896 WTI$ 77.80 Gold 2,453 -0.15% BTC 58,300 +2.90% ETH 2,600 +1.95%
S&P +0.24% Nasdaq +0.42% EuroStoxx +0.41% FTSE +0.02% Dax +0.30% SMI +0.14%
Macro :
- US Approves Possible $5b Sale of Patriot Missiles to Germany
- Capula, Schonfeld, Point72 Among Hedge Funds Riding Bitcoin ETFs
- Billionaire Rokos Names Sebag-Montefiore CEO of His Hedge Fund
- Mars Oil to Get Output Boost from Chevron, Shell Projects
- Mars Oil to Get Output Boost from Chevron, Shell Projects
- Deutsche Bank CIO Urges Tail-Risk Hedging Despite Market Calm
- Mpox’s Changing Face Poses New Challenge to Containment Efforts
Keep an eye on :
Keep an eye on :
- AMBEA SS : Ambea 2Q Net Sales Beats Estimates
- AZN LN : AstraZeneca Gets FDA Approval for Imfinzi Plus Chemo in NSCLC
- BAVA DC : Bavarian Wants Mpox Vaccine Approval to Include Adolescents
- BAYN GY : Monsanto Wins Appeals Court Ruling in Roundup Litigation
- BRNK GY : Branicks Group Sells Four Retail Parks, Generates €27M Cash
- IAG LN : European Airlines Need Demand Floor as Fares Hit, EPS at Risk
- EQT SS : EQT to Buy KJ Environment From Genesis PE; No Terms
- HOLN SW : Building-Materials Sector Metamorphosis Sets Scene for Robust 2H
- ITX SM : Inditex Worth Premium, H&M Waiting for Signs of Inflection: Citi
- INTRUM SS : Intrum’s Lenders Sign Lock-Up Deal That 60% Noteholders Now Back
- KSP ID : Kingspan 1H Trading Profit Misses Estimates
- KR US : Kroger Plans $1 Billion in Price Cuts After Albertsons Merger
- LMT US : US Approves Possible $5b Sale of Patriot Missiles to Germany
- NKT DC : NKT Sees FY Oper Ebitda EU310M to EU345M, Est. EU335.3M
- NVDA US : Nvidia-Backed Cohesity Is Profitable, With 26% Revenue Growth
- ONEF SS : Oneflow Offers SEK75 million Class A Shares via Danske Bank
- ONEF SS : Oneflow Offers SEK75 million Class A Shares via Danske Bank
- PARA US : Edgar Bronfman Is Said to Prepare an Offer for Paramount Global
- PARA US : Bronfman’s Paramount Interest May Be Too Little, Too Late: React
- Revolut IPO : UK Treasury Official to Meet Revolut to Discuss IPO Plans: FT
- SGO FP : Saint-Gobain to Acquire Ovniver Group for $815 Million
- SCATC NO : Scatec 2Q Ebitda Misses Estimates
- SPIE FP : SPIE - Closing of the acquisition of OTTO LSE
- TOKMAN SS : Tokmanni 2Q Comparable Ebit Meets Estimates
- VZN SW : VZ Holding 1H Net Income CHF102.8M Vs. CHF86.3M Y/y