Equities in Asia were mostly subdued as investors digested data showing the world’s second largest economy had fallen into deflation. South Korean shares outperformed the region while Japan edged down and Chinese benchmark indexes fluctuated. Mainland China stocks partly retraced early losses while those in Hong Kong were little changed. Equities in Australia also traded mostly flat. China’s inflation data showed a 0.3% drop in consumer prices in July from a year ago, less than the median forecast of a 0.4% contraction. Producer prices fell 4.4%, more than forecast. The Chinese currency extended gains driven partly by a stronger-than-expected yuan fixing. The Australian dollar and New Zealand dollar edged higher with the yuan, while the greenback was slightly weaker. Declines for Chinese equities followed a 2.4% drop on Tuesday for a measure of US-listed Chinese stocks after a larger-than-forecast slump in trade. Problems at Country Garden, once China’s largest developer, are adding to the gloom, with its shares falling as much as 8.9%. US equity futures ticked higher in Asia after shares trimmed losses on Tuesday as dip buyers emerged following a slide driven by worries about the financial system and the economy. Treasury yields fell across the curve, extending a rally on Tuesday that was helped by a well received three-year note auction. The equity declines on Wall Street waned in afternoon trading, with the S&P 500 finishing down by 0.4%. Apple Inc. halted its longest losing streak this year. Eli Lilly & Co. led gains in health-care companies after sales of its weight-loss treatment blew past expectations and a new study raised the prospect that its drug could benefit heart disease as well. Banks fell as Moody’s Investors Service downgraded 10 small and midsize American lenders and said it may do the same with a handful of major firms. The recent “orderly” pullback in US stocks has reduced the risk of a chaotic selloff and reduced some of the short-term positioning risk that has been a worry for investors, according to Chris Montagu, a strategist at Citigroup Inc. After the closing bell came news that Walt Disney Co.’s ESPN has signed a long-term exclusive partnership for sports betting with Penn Entertainment Inc., a regional casino operator. Shares in WeWork Inc. fell 25% in post-market trading after the company said there was “substantial doubt” about its ability to continue operating, citing sustained losses and canceled memberships to its office spaces. Oil edged lower Wednesday after a rebound Tuesday as Ukrainian President Volodymyr Zelenskiy said his country would retaliate if Russia continues to block its ports. Copper — a barometer of the global economy — slid on the disappointing Chinese trade figures. US After Hours SOUN +16.6%, TOST +13%, RPD +10.6%, PETQ +8.2%, TWLO +8.1%, AKAM +6.5%, DUOL +5.8% higher on earnings; DOCS -21.8%, UPST -20.4%, ZIP -9.7%, SMCI -9.3%, LYFT -5.9% lower on earnings; PENN +17.4% jumps on ESPN deal.
Nikkei -0.40% Hang Seng -0.18% CSI -0.14% Shanghai -0.30% Shenzen -0.33%
Eur$ 1.0975 CNH +0.26% CNY +0.16% JPY +0.13% GBP +1.2764 CHF +0.8742 RUB 96.6171 TRY 27.0301 WTI$ 82.74 Gold 1,932 +0.33% BTC 29,746 -0.79% ETH 1,87 -0.33%
S&P +0.12% Nasdaq +0.22% EuroStoxx +0.90% FTSE +0.50% Dax +0.65% SMI +0.48%
Macro :
- Chris Rokos’s Hedge Fund Recoups 2023 Losses After July Gains
- UAW Demands Would Add $80 Billion to US Carmaker Labor Costs (1)
- Slate to Buy Real Estate Portfolio From X+Bricks in €1b Deal
Keep an eye on :
- ABI BB : Tilray Surges on Plan to Buy Eight Beverage Brands From AB InBev
- ABN NA : ABN Amro Profit Beats Estimates on Rates, Impairment Releases, ABN Amro Expects It Won’t Reach €4.7B Cost Target in 2024
- AH NA : Ahold Delhaize 2Q Adjusted Operating Margin Beats Estimates
- AIR FP : Cathay to Buy Up to 32 Aircraft From Airbus by Sept. 30
- AKTIA FH : Aktia Bank 2Q Adjusted EPS EU0.29
- BNR GY : Brenntag Narrows FY Operating Ebita Forecast (1)
- DHER GY : Delivery Hero Boosts FY Total Segment Revenue Forecast
- DNO NO : OKEA, DNO Agree on Fast-Track Development Concept for Brasse
- EOA GY : E.On 1H Adjusted Ebit Beats Estimates
- GLEN LN : Glencore Output Gain Offset by Coal-Price Drop: Earnings Outlook
- HNR1 GY : Hannover Re 2Q Net Income EU475.6M Vs. EU387M Y/y
- JEN GY : Jenoptik 1H Revenue Beats Estimates
- 973 HK : L’Occitane Boss Is Said in Advanced Talks on $6.5 Billion Buyout
- NOVN SW : Novartis Remibrutinib Phase III Trials Met Primary Endpoints
- NZYMB DC : Novozymes 2Q Ebit Misses Estimates
- ORRON SS : Orron Energy 2Q Ebitda Loss EU2.1M
- QIA GY : Qiagen Cuts FY Net Sales Forecast
- RAIVV FH : Raisio 2Q Net Sales Misses Estimates
- RIVN US : Rivian Sees Ongoing Losses as It Boosts EV Production Plans (1)
- ROVIO FH : Rovio Says 96% of Shares Were Tendered in Sega Offer
- SVT LN : Severn Trent Faces First UK Class Action Suit Over Sewage Dumps
- SHLF NO : Shelf Drilling 2Q Adjusted Ebitda $72.7M Vs. $36.0M Q/Q
- ENR GY : Siemens $5 Billion Wind Turbine Agony Has a Silver Lining: BNEF
- STLA IM : UAW Demands Would Add $80 Billion to US Carmaker Labor Costs (1)
- SAX GY : Stroeer 2Q Adjusted Ebitda Meets Estimates
- SQN SW : Swissquote FY Pretax Profit Forecast Misses Estimates
- SYAB GY : Synlab 2Q Adjusted Ebitda EU113.8M
- TUI1 GY : TUI 3Q Underlying Ebit Beats Estimates; Summer Bookings Up 6%
- UMG NA : Google and Universal Music negotiate deal over AI ‘deepfakes’
- VWS DC : Vestas 2Q Revenue Meets Estimates
- VOE AV : Voestalpine 1Q Ebitda Meets Est., Sees Slowdown in Europe (1)
- VOW GY : UAW Demands Would Add $80 Billion to US Carmaker Labor Costs
- VOW GY : Hedge Fund Shorts Nio and Honda, Favors Hyundai in Asia EV Race
- WE US : WeWork 2Q Revenue Meets Estimates --> -17% in After Hours, WeWork Raises ‘Substantial Doubt’ About Staying in Business