The bounce in Chinese equities is taking US and European stocks along for the ride today. The Shanghai Composite surged 5.8% after Chinese authorities said they would provide markets with ample liquidity and other measures, sending the CAC and DAX both up more than 2.5% a pieces. Bonds are giving up recent gains, with the 10-year UST yield up eight basis points to 2.27% and the 10-year bund up nearly six bps at 0.73%. As of writing, the DJIA is up 0.95%, the S&P500 is up 1.02% and the Nasdaq is adding 1.19%.
Greece's deadline for submitting its final plan for concrete reforms is tonight. The Eurogroup will be meeting on Sunday to consider Athens's request for a third bailout. German Finance Minister Schaeuble warned there would be no debt haircuts for Greece even while admitting that debt sustainability would not possible without haircuts.
Jobless claims rose much more than expected last week, surging back toward the 300K level. Analysts said seasonal factors were almost entirely to blame: auto retooling shutdowns usually fall in July, boosting unadjusted claims early in the month and subtracting from them later in the month. Over recent years auto companies have spread shutdowns throughout the year, but this year has followed the more normal July shutdown pattern.
Yesterday's NYSE outage has come and gone without much of a lasting impact. According to NYSE employees, the computer malfunction that knocked out trading for more than three hours on Wednesday probably stemmed from a software update that went awry. Software security names CHKP, FEYE and FTNT are all up about 3% each today.
Shares of Pepsico gained 3% in the premarket but have given up nearly all its gains in cash trading. Pepsi's second-quarter earnings total beat expectations while revenue was more in line. The company also slightly increased its FY15 outlook. Share of KO are still up 1% or so as of writing. Walgreens Boots Alliance is up nearly 5% on a very strong third-quarter report and a dividend increase.
Coty won an auction to purchase Procter & Gamble's hair-care businesses. Coty, whose stable of products includes Calvin Klein and Marc Jacobs fragrances, will pay $12.5 billion to acquire P&G's RMT Brands, which holds 43 of its beauty brands. Investors are not impressed, with shares of COTY down as much as 9% earlier today, and down 6% as of writing.
***Looking Ahead***
- 13:00 (US) Fed's George (non-voter, hawk) speaks on Economy in Stillwater, Oklahoma
- 13:00 (US) Treasury to sell $13.0B in 30-Year Bonds Reopening
- 17:00 (KR) South Korea Jun Import Price Index M/M: No est v 1.3% prior; Y/Y: No est v -14.6% prior
- 17:00 (KR) South Korea Jun Export Price Index M/M: No est v 1.0% prior; Y/Y: No est v -3.5% prior
- 19:00 (PE) Peru Central Bank Interest Rate Decision: Expected to leave Reference Rate unchanged at 3.25%
- 19:50 (JP) Japan Jun PPI M/M: No est v 0.3% prior; Y/Y: No est v -2.1% prior
- 21:00 (PH) Philippines May Exports: No est v $4.4B prior
- 23:00 (CN) China to sell 1-Year, 3-year and 5-year Bonds
***Economic data***
- (IE) Ireland Jun CPI M/M: 0.3% v 0.4% prior; Y/Y: -0.1% v -0.3% prior
- (IE) Ireland Jun CPI EU Harmonized M/M: 0.4% v 0.5% prior; Y/Y: 0.4% v 0.2% prior
- (MY) Malaysia Central Bank (BNM) left its Overnight Policy Rate unchanged at 3.25%, as expected
- (UK) Bank of England Bank (BOE) left both Interest Rate and Asset Purchase Target (APT) unchanged at 0.50% and £375B respectively, as expected
- (BR) Brazil July IGP-M Inflation (1st Preview): 0.7% v 0.6%e
- (BR) Brazil May National Unemployment Rate: 8.1% v 8.1%e
- (CA) Canada Jun Annualized Housing Starts: 202.8K v 190.0Ke
- (US) Initial Jobless Claims: 297K v 275Ke (highest since Feb); Continuing Claims: 2.334M v 2.25Me
- (CA) Canada May New Housing Price Index M/M: 0.2% v 0.1%e; Y/Y: 1.2% v 1.1% prior
- (MX) Mexico Jun CPI M/M: 0.2% v 0.2%e; Y/Y: 2.9% v 2.9%e; CPI Core M/M: 0.2% v 0.2%e
- (US) Weekly EIA Natural Gas Inventories: +91 bcf vs. +84 to +88 bcf expected range
[I]Contributed by Trade The News[/I]
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