European Stock Futures Lower and China Stock Market Set To Bounce Higher!

• Sharif
• 1 Aug, 2022

Asian PMI Data, German Retail Sales Weigh

European stock markets are expected to open lower Monday, handing back some of the previous session’s gains as data from Asia raised fresh doubts about the global economic recovery.

However, this optimism has been diluted after a series of purchasing managers' indexes in Asia for July pointed to weakness in the region's largest economies.

There are more manufacturing PMI readings due in Europe later in the session, but German retail sales added to the negative tone, slumping 1.6% on the month in June, and a massive annual fall of 8.8%.

However, this fall was not as bad as feared and the lender raised its near-term return on tangible equity goal to at least 12% from 2023 onwards, and vowed to restore paying quarterly dividends next year.

Attention this week will be on the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, which is set to meet on Wednesday to discuss future supply.

By 02:00 AM ET, U.S. crude futures traded 1.2% lower at $97.47 a barrel, while the Brent contract fell 0.8% to $103.18. - Investing

European Shares Set To Open Weak On China Data

European stocks are likely to open lower on Monday as investors await more earnings and economic data this week for clues about the state of the global economy.

The big focus of this week will be the monthly U.S. jobs report due on Friday.

On the earnings front, more than 20 percent of the S&P 500 companies will be unveiling their earnings this week.

U.S. stocks rose for a third straight session on Friday as strong quarterly earnings from the likes of Amazon and Apple helped investors look past inflation concerns, with a key inflation gauge surging sharply again in June.

The pan European Stoxx 600 climbed 1.3 percent. The German DAX rose 1.5 percent, France's CAC 40 jumped 1.7 percent and the U.K.'s FTSE 100 surged 1.1 percent. - Businessinsider

European markets set to kick off August trading with a mixed open

European stocks are expected to open in mixed territory on Monday, kicking off August trading on uncertain footing.

The U.K.’s FTSE index is seen opening 8 points lower at 7,420, Germany’s DAX up 1 point at 13,478, France’s CAC 40 down 9 points at 6,442, and Italy’s FTSE MIB down 55 points at 22,343, according to data from IG.

Investors digested a fresh swathe of corporate earnings and key economic data out of the eurozone last week, with data released last Friday showing economic growth in the eurozone accelerated in the second quarter, despite the escalating gas crisis and record-high inflation.

Earnings are set to come from HSBC, Credit Suisse, Pearson, Heineken, and Erste Group.

Data releases include eurozone unemployment figures for June and final PMI euro zone data for July. - CNBC

U.S. stock futures slip after Wall Street’s best week since 2020

U.S. stock-index futures slipped overnight, after Wall Street finished its best month since 2020.

Dow Jones Industrial Average futures YM00, -0.35% dipped about 150 points or 0.5%, and S&P 500 futures ES00, -0.38% and Nasdaq-100 futures NQ00, -0.37% showed similar declines as of midnight Eastern.

The price of West Texas crude CL.1, -0.96% declined by $1.30 a barrel, while bitcoin BTCUSD, -2.50% and other major cryptocurrencies ETHUSD, -2.17% slid about 2%.

On Friday, the Dow Jones Industrial Average DJIA, +0.97%  gained 315.50 points, or 1%, to close at 32,845.13, notching a third straight day of gains; the S&P 500  SPX, +1.42% climbed 57.86 points, or 1.4%, to 4,130.29, rising for a third consecutive day; and the Nasdaq Composite COMP, +1.88%  rose 228.09 points, or 1.9%, to end at 12,390.69, its third straight day of gains.

For the week, the Dow gained 3%, the S&P 500 rose 4.3% and the tech-heavy Nasdaq advanced 4.7%. For July, the Dow advanced 6.7%, the S&P 500 jumped 9.1% and the Nasdaq surged 12.3%, according to Dow Jones Market Data.

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It was the best monthly results for the Dow and S&P 500 since November 2020, and the Nasdaq’s best month since April 2020.

“Dovish messaging from the FOMC and better-than-feared corporate earnings have supported equities,” Stephen Innes, managing partner at SPI Asset Management, said in a note Sunday.

“At best, earnings beats have been average, but the lack of fireworks means boring is beautiful.”

“With slowdown fears dominating and the deceleration in market-implied inflation trends looking increasingly optimistic, investors were broadening their risk-taking appetites,” Innes wrote.

“But investors may pause from chasing the current trend, stock higher, and yields lower, ahead of the ISM and nonfarm payroll data this week.”

After a week of quarterly earnings reports from Big Tech companies, the upcoming week features earnings from a wide range of smaller but still significant companies, including Robinhood Markets Inc.

HOOD, -0.66%, Uber Technologies Inc. UBER, +0.60%, Activision Blizzard Inc. ATVI, +0.55%, Expedia Group Inc. EXPE, +0.70% and Advanced Micro Devices Inc. AMD, +3.05%. - marketwatch

China Stock Market Set To Bounce Higher On Monday

The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day losing streak in which it had slumped almost 55 points or 1.7 percent.

The global forecast for the Asian markets is upbeat on optimism over corporate earnings, plus support from the energy and technology sectors.

For the day, the index sank 29.34 points or 0.89 percent to finish at 3,253.24 after trading between 3,246.37 and 3,294.80.

For the week, the NASDAQ spiked 4.7 percent, the S&P climbed 4.3 percent and the Dow gained 3.0 percent.

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The three-day rally also capped off a strong month for stocks, with the major averages recording their best monthly gains since 2020.

Crude oil prices rose sharply after the Energy Information Administration said U.S. crude inventories tumbled last week. - nasdaq