China's GDP misses expectations
In China, GDP expanded 6.3% in the second quarter, accelerating from 4.5% in the first three months of the year, but the rate was below the forecast for growth of 7.3%.
European indices
European indices started the week in the red, in the wake of the US equity market on Friday and Asia Pacific region (APAC) overnight. After recording its worst weekly performance in 2023, the USD Basket remained below 100 on Monday.
China overview
In China, the gross domestic product (GDP) expanded 6.3% in the second quarter, accelerating from 4.5% in the first three months of the year, but the rate was below the forecast for growth of 7.3%. This was the quickest pace since the second quarter of 2021, but the COVID-19 restriction last year provided a very favourable base effect. Also released this morning, industrial production rose more than expected by 4.4% in June year-on-year (YoY), and retail sales narrowly missed consensus, rising 3.1% in June year-on-year (YoY).
Equity market
Elsewhere on the equity market, Czech billionaire Daniel Křetínský is poised to win the battle for control of Casino after a group of investors led by billionaire Xavier Niel dropped out of the running to bail out the French food retailer.
Microsoft
Microsoft proposed $69 billion purchase of Activision Blizzard is back on, at least on the US side. On Friday, a US judge rejected final calls to block Microsoft from taking over Activision Blizzard, but in the UK, the Competition and Markets Authority (CMA) is wanting time to consider the proposals from Microsoft to restructure its cloud gaming business.
Back in April, the CMA said that combining the maker of Xbox consoles with the creator of hit games including Call of Duty and Diablo would give it "the ability to undermine new and innovative competitors." The CMA has now pushed back its July 18 deadline for blocking the deal until August 29 after receiving a "detailed and complex submission from Microsoft."
Major banks
After last Friday, which saw JP Morgan Chase, Wells Fargo , and Citigroup Inc all beat earnings and revenue estimates, and other financial giants are set to report this week. Tomorrow, Bank of America is forecast to post earnings of 84 cents per share on revenue of $25.02 billion.
On Wednesday, Goldman Sachs's earnings per share (EPS) was seen at $3.46 per share and revenue at $10.66 billion. Other than banks, we are expecting big names to report in the coming days.
Tesla
Starting on Wednesday with Tesla . The street expects earnings of 79 cents per share on revenue of $24.29 billion. In the same quarter a year ago, the electric car maker posted EPS of almost 76 cents and revenue of just under $17 billion. This illustrates very well the shift in strategy Elon Musk put in place at the beginning of the year. To be able to compete with cheaper Chinese EV makers, Musk said Tesla needed to prioritise sales over profits.
Stocks
Also expected on Wednesday: Netflix Halliburton, and IBM. Followed on Thursday by American Airlines and Johnson and Johnson, and on Friday by American Express and Schlumberger. All these stocks are session stocks on the IG platform.
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