Marcus Today Pre-Market Podcast – Wednesday 5th July

Global stock market trading was light overnight, with US markets closed for the Independence Day holiday. European markets muted in thin trading overnight, with indices ending around session lows. STOXX 50 -0.2% FTSE -0.1% CAC -0.2%, and DAX -0.3%. US equity futures flat with markets closed. Asian markets mixed overnight. Hang Seng led gains in China, up 0.57%, as mainland equities finished flat. Japan’s Nikkei 225 fell from its highest level since 1990, down 0.62%, while the Japanese Yen hovers near an eight-month low.

ASX to open lower. SPI Futures down 12 points (-0.17%).

Among stocks, Meta lost its fight against a German data curb order as Europe’s top court backed the German antitrust watchdog’s power also to investigate privacy breaches. Apple infringed two telecommunications patents used in iPhones and iPads, London’s Court of Appeal ruled overnight, dismissing the appeal from a long-running dispute with the US patent holder. Microsoft is likely to face a European Union antitrust investigation in the coming months after discussions with the EU watchdog to avert such a move have hit a roadblock. Meanwhile, Telsa achieved record deliveries of their China-made vehicles in Q2, totalling 247,217 EVs, the most since it started delivering vehicles from Shanghai in early 2020.  

• German 2Y bond yields near 15-year highs as debt markets ready for rates to rise further and stay higher for longer.
• Pfizer announced two deals with Samsung Biologics worth a combined $897m which will see the biotech division of Samsung manufacture biosimilar products ranging from oncology and inflammation to immunotherapy for the US pharmaceutical giant.
• China imposes export controls on gallium and germanium products, seen as a retaliatory measure in the US-China tech dispute, leading to concerns of potential curbs on rare earth exports; companies rush to secure supplies, and semiconductor firms consider alternative materials.
• Gold continued up 0.19%, waiting to see if the fed will hold rates.
• Copper dropped 0.41% overnight on a gloomier economic outlook.
• Nickel -0.63% Aluminium +0.37% Zinc ++1.22%, Lead +0.07%, and Tin -0.66%.
• Brent rose 1.55% as as Saudi Arabia extended its voluntary output cut, while Russia and Algeria also reduced their output and export levels for August. The total cuts amount to more than 5 million barrels per day, or 5% of global oil output.
• Domestic data: Judo Bank Services PMI, Ai Group Industry Index.
• Japan data: Jibun Bank Services PMI.
• China data: Caixin Services PMI.

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