Asia stocks fell as Fitch Ratings’ downgrade of the US sovereign rating soured risk sentiment following a strong recent run, while further support measures from China failed to reverse the mood. An Asia Pacific equity gauge headed for the biggest decline in almost a month. Equities in Hong Kong and mainland China extended losses, while Japanese stocks dropped as a stronger yen dented the outlook for corporate profit. Some profit taking may be taking place after a broad uptrend in Asian shares following China’s Politburo meeting. Focus appears to be shifting to the effectiveness of the policy support as earlier optimism cools. Fitch’s rating cut, announced before markets opened in Asia, initially pushed Treasuries higher before the moves stabilized, leaving the two-year yield down one basis point. Investors say Fitch’s US downgrade to AA+ from AAA will do little to deter the top-notch status of US assets over the longer-term, citing a lack of alternatives and the economy’s solid growth. They are also taking cues from what transpired in the wake of a similar event in 2011, when S&P Global Ratings removed the highest rating for the US following an earlier debt-ceiling crisis. While that triggered a selloff in risk assets around the world, it boosted Treasuries as investors sought out havens. Contracts for the S&P 500 and Nasdaq 100 were down around 0.5%. The S&P 500 had finished Tuesday with a small loss as the rally that drove the stock market up almost 30% from its October lows took a breather. A gauge of the dollar ticked slightly higher, reversing an earlier loss. Still, the greenback was weaker against most of its Group-of-10 peers. The latest US data suggested some softening in demand for workers in a still tight US labor market. The numbers weren’t enough to entice investors, who also grappled with a mixed bag of corporate earnings. Advanced Micro Devices Inc. gained in late trading after the company topped second-quarter estimates and said it was making further inroads in artificial-intelligence computing. Starbucks Corp. dropped as its quarterly sales fell short of analysts’ estimates, a sign that momentum may be slowing for the coffee giant amid higher prices and tighter pocketbooks. Oppenheimer Asset Management’s John Stoltzfus now sees the S&P 500 index hitting 4,900 by the end of the year, leaving room for another 7% gain. The target change came a day after Morgan Stanley’s Michael Wilson, one of the market’s leading doomsayers, sounded less bearish than usual.
Stoltzfus’s target would mark a new record for the gauge and one that plays out against bearish predictions by prominent Wall Street names such as Wilson, JPMorgan’s Marko Kolanovic and Bank of America Corp.’s Michael Hartnett. Oil extended its rally after an industry estimate pointed to a huge drawdown in US inventories, adding to signals the market is tightening. Gold edged higher. US After Hours US cut by Fitch to "AA+" from "AAA"; CDLX +20.9%, ELF +16.9%, TEX +4.8%, AMD +3.8% higher on earnings; CMBM -23.9%, AXTA -13.6%, SEDG -11.8%, PAYC -8.5%, EA -3.4%, PINS -3.4% lower on earnings.
Nikkei -2,43% Hang Seng -2,32% CSI -0,86% Shanghai -0,99% Shenzen -0,49%
Eur$ 1,0999 CNH 7,1897 CNY 7,1790 JPY 142,74 GBP 1,2786 CHF 0,8743 RUB 92,0158 TRY 26,9683 WTI$ 82,08 Gold 1949 BTC 29,630 +1,5% ETH 1,860
S&P -0,47% Nasdaq -0,66% EuroStoxx -0,79% FTSE -0,53% Dax -0,91% SMI -1,08%
Macro :
- Goldman Strategists Say Fade the Rally in US Cyclical Stocks
- JPMorgan’s Trading Desk Says Record S&P 500 ‘Feels Inevitable’
- BofA Says Wall Street Chasing Rally at Fastest Pace in Two Years
- Loeb’s Third Point Laments Missing ‘Obvious’ Tech Rally, Eyes AI
- MicroStrategy Returns to Profitability With Rebound in Bitcoin
Keep an eye on :
- AED BB : Aedifica 1H EPRA EPS EU2.76 Vs. EU2.36 Y/y
- ALT FP : Saade, Niel Interested in Altice France Media Operations: Figaro
- ARM LN : *SOFTBANK'S ARM IS SAID TO TARGET $60B-PLUS VALUE IN SEPT. IPO
- AG1 GY : AUTO1 Boosts FY Adjusted Ebitda Loss Forecast
- Berge Group : Spain’s Bergé Mulls IPO of its Car Unit Astara: Expansion
- BNP FP : Inbursa Reaches Deal to Acquire 80% of BNP Paribas Mexico Unit
- DRW3 GY : Draeger Recalls Carina Ventilators Due to Possible Contamination
- DSFIR NA : DSM-Firmenich 1H Adjusted Ebitda EU929M Vs. EU1.18B Y/y
- FRE GY : Fresenius SE 2Q Ebit Before Special Items Beats Estimates
- FME GY : Fresenius Medical 2Q Revenue Beats Estimates
- HLAG GY : Chile’s SAAM Completes Sale of Port Assets to Hapag Lloyd
- BOSS GY : Hugo Boss 2Q Sales Beats Estimates
- ISP IM : Italy’s Cyber Agency Detected Attack Against 5 Banks: Repubblica
- IVG IM : Iveco Boosts FY Consolidated Adjusted Ebit Forecast
- JDEP NA : JDE Peet's 1H Revenue Meets Estimates
- LI FP : Klepierre Sees FY Group NCCF/Shr at Least EU2.40, Saw EU2.35
- KCO GY : Kloeckner Sees FY Adjusted Ebitda EU220M to EU280M
- LNZ AV : Lenzing 1H Ebitda -28% Y/y, Keeps Targets After Capital Hike (1)
- MANU US : Manchester United Shares Slide Most Since May in Heavy Trading
- MELE BB : Melexis Narrows FY Revenue Forecast
- MFEB IM : MFE 1H Ebit Beats Estimates
- OCI NA : OCI 2Q Adjusted Ebitda Beats Estimates
- PSH NA : Pershing Square Holdings July Net Performance +5.1%
- PPF Group : Emirates Telecom Targets Europe With €2.2 Billion PPF Stake
- RILBA DC : Ringkjoebing Landbobank Forecasts FY Results
- SCHP SW : Schindler Gets 5-Year Maintenance Contract in Miami-Dade County
- SHL GY : Siemens Healthineers 3Q Adjusted Ebit Misses Estimates
- SY1 GY : Symrise 1H Ebitda Misses Estimates, FY 2023 Targets Confirmed
- TEVA IM : FDA, DEA Ask Drug Companies to Make More Adderall
- URW FP : Mall REITs Approach Rent Inflection But Still Work to Be Done
- UNI SM : Unicaja Holder Oceanwood Capital Management Offers Shares
- YARA NO : Fertilizer Use Growing, Fertiglobe CEO Says After Profit Plunge
- WZZ LN : ISS Recommends Against More Time for Wizz CEO to Win £100m Bonus