Chinese stocks extended gains as investors awaited earnings from the nation’s biggest banks and companies such as Alibaba Group Holding Ltd. and BYD Co., a test of whether the rally can endure. Goldman Sachs strategists raised their 12-month target for the CSI 300 Index to 4,900 from 4,500 on Thursday. The index gained as much as 1.2% - headed for its highest close since March 2022 - as China faced its busiest earnings day this week, with 441 locally listed companies reporting, according to Bloomberg data. Indexes elsewhere in Asia were mixed ahead of the Federal Reserve’s favored price gauge due Friday. Oil fell 0.7% after gaining in the previous session on waning prospect of a peace agreement between Russia and Ukraine. A gauge of the dollar edged up while Treasuries inched lower, with yields on the benchmark 10-year rising one basis point to 4.21%. China’s stock market is heading for a record turnover this month, underscoring the intensity of a bull run that’s bringing in more investors by the day. Market excitement in China is running high even as banks and regulators hint they might try to cool things down, with US tariffs and a deep-rooted property crisis straining the economy. Liquidity of mainland shares “is expected to remain relatively high in the future,” said Dickie Wong, executive director of research at Kingston Securities Ltd. “Although there may be profit-taking in the short term, A-shares have already entered a bull market and are looking ahead.” While investors await Alibaba’s results, earnings from its peers make clear that hyper-competition in the sector is taking a toll. JD.com Inc.’s recent food delivery losses were bigger than expected, while Meituan’s shares tumbled this week after it warned of big losses due to “irrational competition.” As economic optimism grew, China’s central bank nudged the yuan higher, stoking speculation of a subtle shift in strategy toward favoring a stronger exchange rate after strong exports brightened the nation’s growth outlook. While Goldman Sachs boosted China stock targets, Morgan Stanley analysts flagged emerging signs of the market overheating. Also, Chinese artificial intelligence chipmaker Cambricon Technologies Corp.’s stock fell as much as 8.7% after it issued a warning to investors about elevated trading risks. Meanwhile, the S&P 500 rose 0.3% to a record Thursday after data showed the US economy expanded faster than initially estimated, highlighting the resilience of consumer spending. While that soothed recession jitters, it raised doubts about Friday’s inflation report, which is expected to show core personal consumption expenditures prices rising 2.9% in July, the fastest pace in five months. In commodities, oil gave up some of its gains in the prior session amid waning hopes for peace in Ukraine, which reduced the likelihood of more of Moscow’s supplies reaching broader markets in the near term.
Oil is headed for a monthly loss, as investors weighed concerns about a looming glut along with geopolitical tensions, including US-led efforts to end the war in Ukraine. A meeting between Ukrainian President Volodymyr Zelenskiy and Russia’s Vladimir Putin is unlikely to materialize, according to German Chancellor Friedrich Merz, even though it was touted earlier by US President Donald Trump. The president will make a statement on Russia and Ukraine later, the White House said. US After Hours ESTC +18.2%, AMBA +17.9%, AFRM +13.5%, ADSK +10.3%, S +8.7% higher on earnings; MRVL -9.8%, DELL -6.3%, GAP -5.9% lower on earnings.
Nikkei -0.30% Hang Seng +0.88% CSI +0.67% Shanghai +0.27% Shenzen +0.33%
Eur$ 1.1664 CNH 7.1241 CNY 7.1294 JPY 146.93 GBP 1.3500 CHF 0.8026 RUB 80.6221 TRY 41.1460 WTI$ 64.19 -0.63% Gold 3,409 -0.23% BTC 111,467 -0.41% ETH 4,478 +0.43%
S&P -0.11% Nasdaq -0.20% EuroStoxx -0.07% FTSE +0.08% Dax -0.14% SMI +0.09%
Macro :
- Greece’s GDP Warrants Dispute Set to Go to Trial in April
Keep an eye on :
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- AMBA US : Ambarella 3Q Revenue Forecast Beats Estimates --> +15% in after Hours
- BALN SW : Baloise Swiss Property Fund Completes CHF153.7M Capital Raise
- 1211 HK BYD : +2.90%
- 3750 HK : CATL +5%
- AM FP : Germany, Spain Urge Breakthrough in Stalled Fighter Jet Program
- AM FP : Germany, Spain Urge Breakthrough in Stalled Fighter Jet Program
- DELL US : Dell Raises Annual Forecasts on Strong Demand for AI Servers --> -4%
- ESTC US : Elastic Boosts FY Revenue Forecast, Beats Estimates
- FLATB SS : Flat Capital Invests ~SEK458m In Defensor Group
- GAP US : Gap 2Q Total Comparable Sales Miss Estimates, Gap Margins Slashed by Tariffs, Sales Dragged by Athleta --> -12%
- SGHT FP : GenSight Biologics : publication semestrielle différée
- GOMX SS : Hargreaves14 Makes Mandatory SEK6.86/Share Offer for GomSpace, GomSpace Board Recommends Holders Don’t Accept Mandatory Offer
- HMB SS : Fashion Retailers as Gap Cautions on Margins After Miss
- 9660 HK : Horizon : +4.50%
- JNJ US : J&J Abandons Rheumatoid Arthritis Combo After Lackluster Results
- 6181 HK : Laopu : +1.70%
- MRVL US : Marvell Technology 2Q Data Center Revenue Misses Estimates
- META US : Meta is racing the clock to ship its newest Llama AI model this year
- NKT DC : NKT Says Slovak Antitrust Regulator Proposes Fines in Probe
- ORSTED DC : Orsted’s US Project Freeze Holds Key to Earnings, Cash Lifeline
- 1913 HK : Prada +1.96%
- RECT BB : Recticel Sees FY Adjusted Ebitda About EU55M, Est. EU61.5M
- RCO FP : Remy Cointreau Sees €30M Tariff Impact on Op. Profit, Saw €45M
- S US : SentinelOne 2Q Revenue Meets Estimates
- SIFG NA : SIF 1H Net Loss EU25.9M Vs. Profit EU7.44M Y/y, SIF Cuts FY Adjusted Ebitda Forecast (1)
- TC1 GY : Tele Columbus CFO to Leave German Fiber Operator on Aug. 31
- TC1 GY : Tele Columbus CFO to Leave German Fiber Operator on Aug. 31
- ULTA US : Ulta Beauty 2Q EPS Beats Estimates
- VOW GY : VW to Electrify Jetta Brand, Targets China’s Budget EV Market
- WG/ LN : Wood Group to Sell North America T&D to Qualus for $110 million