📰 What’s moving Markets?

Stocks:

• Major US indices trended downwards with the S&P 500 declining 0.7% to 4,467.71 points, and the Nasdaq Composite sliding 1.17% to 13,722.02 points yesterday. The negative sentiment can most likely be attributed to investor wariness ahead of US inflation data, which is expected to print at 3.3% today (headline CPI).

• China's economic woes include deflation in July with consumer prices down 0.3% YoY, and a sharp decline in trade activities with July exports dropping 14.5%. Shares in Asia are trading lower with the exception of Japan’s Nikkei 225, up 90bps today, while Europe and US futures are also in the green.

• Lyft's shares decreased by 10.03% after revealing only 3% growth in Q2, while Roblox shares dived 21.94% due to Q2 earnings below market expectations.

• Penn Entertainment's shares went up 9.1% after announcing a partnership with Disney-owned ESPN.

Bonds:

• Yield on 10-year US Treasury notes rose to 4.020%. Polls by Reuters predict this yield could drop to 3.60% in six months.

FX:

• The dollar showed slight fluctuations, up 0.01% against sterling at $1.27, down 0.01% against the euro at €1.10 euro cents, and down 0.03% against the yen at JPY 143.68.

• Analysts highlight China's transition into deflation, marking the first G20 economy to report a YoY decline in consumer prices since Japan in August 2021.

Commodities:

• Oil prices slightly decreased with US crude at $84.34 per barrel and Brent at $87.47 per barrel.

• Concerns arise about potential strikes at Australian LNG facilities affecting cargoes to Asia and the ongoing rise in key energy markets hinting at prolonged inflation and higher interest rates.

📊 Chart of the Day

US Credit Card debt is on the rise.

Year-on-year change in credit card debt (Billions)

🤿 Deep Dive

European gas prices jumped almost 40% yesterday, the biggest gain since March 2022. Check out this article to find out why.

If you’re pressed for time, here’s the TL;DR:

• European natural gas prices surged due to potential worker strikes in Australia, raising concerns over supply disruptions.

• Benchmark futures experienced extreme volatility, with an intraday increase of 40%, reaching €40 for the first time since June.

• Strikes could disrupt LNG exports from Australia, leading Asian countries to increase their imports and impacting European prices.

• Other factors influencing gas prices include decreased LNG imports to Europe, potential maintenance delays in Norway, and shifting investor positions.

• Despite the price surge, Europe's gas inventories remain high, but concerns persist about the upcoming winter season and Europe's competition with Asia for supplies.

📆 Coming up this Week

Monday 7th August

• Germany Industrial Production MoM consensus: -0.4%, last: -0.2%, actual: -1.5%

• China Trade Balance consensus: 625.25M, last: 491.25M, actual: 575.5M

Company Earnings: Paramount (beat), Palantir (in line), Lucid (miss), KKR (beat)

Tuesday 8th August

• Germany Headline CPI YoY consensus: 6.2%, last: 6.4%, actual: 6.2%

• France Trade Balance consensus: -8.0B, last: -8.4B, actual: -6.7B

• United States Trade Balance consensus: -65.70B, last: -69.00B, actual: -65.50B

Company Earnings: UPS (beat), AMC (beat), Lyft (beat), Fox (beat), Coupang (beat), Twilio (beat)

Wednesday 9th August

• China Headline CPI YoY consensus: -0.5%, last: 0.0%, actual: -0.3%

• China PPI YoY consensus: -4.0%, last: -5.4%, actual: -5.4%

Company Earnings: Roblox (miss), Disney (beat), Sony (beat), E.On (beat)

Thursday 10th August

• Japan PPI YoY consensus: 3.5%, last: 4.1%

• United States Initial Jobless Claims consensus: 231K, last: 227K

• United States Headline CPI YoY consensus: 3.3%, last: 3.0%

• United States Core CPI YoY consensus: 4.7%, last: 4.8%

Company Earnings: Alibaba

Friday 11th August

• United Kingdom GDP QoQ consensus: 0.0%, last: 0.1%

• United Kingdom GDP YoY consensus: 0.2%, last: 0.2%

• United Kingdom Industrial Production YoY consensus: -2.1%, last: -2.3%

• United Kingdom Manufacturing Production consensus: -1.0%, last: -1.2%

• France Headline CPI YoY consensus: 4.3%, last: 4.5%

• United States Core PPI YoY consensus: 2.3%, last: 2.4%

• United States PPI YoY consensus: 0.7%, last: 0.1%