Marcus Today Pre-Market Podcast – Monday 17th July

US markets closed out the week mixed on Friday as the US Q2 reporting season kicks off. Dow Jones up 114 points on Friday (+0.33%). NASDAQ -0.18%. S&P 500 -0.1%. All markets were higher for the week on softer-than-expected US CPI data followed by lower-than-expected PPI data, the lowest in three years. For the week, the Dow Jones was up 2.3%, the S&P 500 up 2.4% and the NASDAQ up 3.3%. The ASX 200 was up 261 points, up 3.7% for the week, recovering the previous week’s losses and then some.

• ASX to edge lower. SPI Futures down 2 points (-0.03%).

Q2 US reporting season kicked off Friday. Major U.S. banks, including JPMorgan +0.6%, Wells Fargo -0.3, and Citigroup -4.0%, reported increased profits due to higher interest rates, signalling a resilient economy. But they warned of risks ahead, such as declining consumer spending and mounting losses in credit cards and office commercial real estate. State Street -12.05% beat profit estimates but cautioned about a decline in net interest income due to lower deposits.

• Copper fell 0.12% after hitting a 3-week high last week.
• Nickel +1.79% Aluminium -0.24% Zinc -1.6%, Lead +0.09%, Tin -0.73%.
• WTI Crude and Brent fell 1.85% and 2.06% despite a Libyan Oil field closing due to production.
• 10Y Bond yields: US 3.83%, Australia 3.99%, and Germany 2.48%.

HEADLINES

• ASX to inch down with new era for RBA in focus.
• Yellen 'eager' to work with China on debt, other global challenges.
• Japan finance minister: "No discussion" of exchange rates at G7.
• India to push G20 to raise share of taxes on firms where they earn 'excess profit'.
• Taiwan ruling party pledges steady hand as opposition rallies.
• US, China aim to revive climate cooperation as tensions simmer.
• China's Xiaomi bets bigger on India retail stores amid Samsung rivalry.
• China economic data likely to show recovery is fading quickly.
• 'Heat storm' stretches into southern Europe, health alerts issued.
• Trade body considers calling for EU ban on Russian aluminium, but not Rusal.
• Black Sea grain deal still in Limbo.

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