Share markets edged higher overnight during a busy earnings season, cautious in the face of oncoming interest rate decisions for several central banks.
Inflation has been cooling across the OECD in recent months, dropping from 7.4% in April to 6.5% in May as inflation declined in all OECD countries except the Netherlands, Norway and the UK.
Euro markets were further stymied by new data pointing to a slowdown in business activity in the UK, France and Germany in July, increasing Europe’s overall recession risk.
Energy (+1.4%) and telecom (+1.2%) stocks gained as media (-0.9%) and tech (-0.8) fell.
An inconclusive election result in Spain caused a dip of -0.3% for the IBEX 35, the FTSEEurofirst 300 gained 0.1% and the UK FTSE 100 increased by 0.2%.
In America, disappointing business activity metrics pointed to a potential end to rate hikes by the Federal Reserve, as the spectre of recession threatens.
Some of the bigger stocks experienced unexpected windfalls:
- Better than expected earnings numbers bumped Chevron’s stock up 2%.
- The successful domestic debut of the Barbie movie gained toymaker and IP owner Mattel (NASDAQ:MAT) 1.8% to its share price.
- AMC Entertainment gained 33% as a court ruling put a stock conversion plan to bed permanently.
- Strong sales in the US and China increased Tesla’s stock 3.5%.
- Finally, Apple (NASDAQ:AAPL) gained 0.4% as Bloomberg reported steady iPhone shipments despite ongoing economic uncertainty.
Currency and commodities
The US dollar had mixed success overnight.
The Euro and Aussie softened, near US$1.1065 and US$0.6735 at US close, while the Japanese yen firmed, near JPY141.45 at the end of the day.
Oil prices neared a 3-month high with a 2% bump as crude supply tightened and US demand grew alongside hopes hung on China’s stimulus measures.
Brent rose 2.1% to US$82.74 a barrel while Nymex added 2.2% to US$78.74 a barrel.
Base metals also benefited from renewed hopes of a Chinese economic reawakening, with copper futures up 1% and aluminium futures 0.3% and iron ore rose less than 0.1% to US$112.51 a tonne.
Gold, on the other hand, fell. The precious metal shed 0.2% to US$1,962.20 an ounce.
Looking ahead for the week, consumer confidence data is scheduled to be released, alongside sales and production results for big miners like Newcrest, Pilbara Minerals and 29Metals.
On the small cap front
The ASX All Ords was down 0.32% at yesterday’s close but remains up 4.45% for the month.