Equity Brief Half hearted bulls take control

Stock market snapshot as of [19/7/2019 2:47 PM]

It’s a lacklustre tug of war between index bulls and bears and Friday, as the main gauges dither a few tenths of a percentage point over the flat line. They last stood a little higher
Familiar frets strum out a familiar tune as Europe’s all-country STOXX 600 remains hamstrung by everything from resistance last tested in April, frequent data undershoots (on Friday it was Germany’s PPI) and earnings that do little to contradict pessimistic estimates
At least anxieties over whether the pressure is coming off the Fed and the ECB to move quickly and aggressively with rate cuts, is fading. Even then, doubts remain. Two Fed officials have essentially contradicted each other in the space of a few minutes, albeit ultra-dovish comments by New York Fed President John Williams have mostly prevailed on Friday. This has contained the dollar and buffed interest in silver and gold
ECB prospects also look less equivocal as economists assess the downward spiral of Eurozone readings in light of comments by the central bank’s president Mario Draghi. He said in last month that he’s ready to add stimulus if the economic outlook doesn’t improve. Consensus forecasts now point to a 10-basis point deposit rate cut to a record-low minus 0.5%, though not at next week’s ECB policy meeting. Strong hints will be the likely outcome instead
Wall Street indices open a tad higher than the Continent’s, rising 0.3% to 0.5% so far

Corporate News

Non-earnings-related corporate news is another positive distraction on the northern side of the Atlantic. Swedish/Swiss ABB’s China unit plans to sell stakes in two JVs. ABB grinds higher in Zurich, taking machinery peers with it
Anglo/German tourism firm TUI also stands out, with a 6.4% gain offering much-needed relief to the travel & leisure sector. The €4.7bn group is seen as a beneficiary of Boeing 737 Max compensation. Travel-industry data showing improving demand in the UK and Germany also helps
JC Penney, BlackRock and Microsoft are in focus among U.S. heavyweights. Retailer JCP is reportedly corralling investments banks as it readies a large-scale debt restructuring. The stock tanks 10%. Asset manager BlackRock missed estimates though its shares rose 1% on promising active management and software licensing fees
Boeing bounces back by 2% from a slide on Thursday that followed its pre-announcement of a $5bn hit related to its 737 Max

Upcoming corporate highlights

BMO: before market open

Upcoming economic highlights

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.