Lacklustre trade for Asia
The lack of strong impetus once again sees Asia markets trading mixed into Tuesday. This comes after Wall Street chalked up fresh records, albeit with very mild gains.
Citigroup’s higher earnings
The highly anticipated bank earnings release saw Citigroup commencing with a beat on both counts of profit and revenue. Earnings per share of $1.95 slightly beat the Street’s estimation of $1.80 which had perhaps been a relief for markets. That said, this came with the IPO of a subsidiary while the bank’s trading business was noted to be weak in Q2. Alongside the report of an interest margin squeeze, it had altogether not helped the financial sector which slipped 0.53% on the S&P 500 index in the session overnight. In turn, for the financial sector ETF (XLF ETF), prices had likewise slipped below the $28.17 resistance once again, one to look to the likes of JP Morgan and Goldman Sachs releases for any boost or signs of retracement as prices remain at inflection point.
Source: IG Charts
Crude oil slide
Notably, crude oil prices can be seen trading lower going into the week. Brent crude oil dipped to $66.20 per barrel overnight, holding between its 50 and 100-day moving averages. Supply concerns from the diminishing impact of tropical storm Barry and a deteriorating demand outlook can be seen taking a toll on prices, likewise weighing on energy stocks. While prices do look to be attempting to form a higher low here and have yet to exhaust the uptrend, there appears a lack of strong factors to swing prices higher. Watch for a break on the downside below the shorter-term 50-DMA of around $66/bbl that could invite further pressure for prices.
Source: IG Charts
Asia open
As told above, the lack of impetus for Asia markets have kept prices trading in a lacklustre fashion this morning. China’s in-line Q2 GDP release coupled with the surprise in the June high frequency indicators on Monday had been positive signs but also a difficult read into the outlook, resulting in moderate movements for Asia markets. A quiet session is seen for Asia, while the US session will see attention on US’ June retail sales and industrial production to assess how the data had fared against China’s improvement.
Yesterday: S&P 500 +0.02%; DJIA +0.10%; DAX +0.52%; FTSE +0.34%
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