Tuesday, 9 July 2024

US Stocks Higher, But Another Warning. Europe Stocks Slide.

Baltic Dry Index. 1940 -26        Brent Crude  85.53

Spot Gold 2368              US 2 Year Yield 4.62  +0.02

How can anyone govern a nation that has two hundred and forty-six different kinds of cheese?

Charles de Gaulle.

In the US stock casinos onward to infinity and beyond. But Europe’s stock casinos fret over France and Germany.

 

Nikkei 225 hits fresh high as Japan stocks continue to rally; Aussie business confidence climbs

Asia-Pacific markets were mostly higher on Tuesday, after the S&P 500 and the Nasdaq Composite closed at record highs overnight, with Japan’s Nikkei hitting a fresh high.

Nikkei 225 rose 1.9%, while the broad-based Topix added 0.91%.

South Korea’s Kospi inched up 0.16% as shares of heavyweight Samsung Electronics gained 0.34%, even as the company’s largest union continued its three-day strike as it seeks better pay. Hyundai on the other hand reached a tentative wage agreement with its labor union, averting a strike. Hyundai shares slid 3.53%.

Hong Kong’s Hang Seng Index slipped 0.47%, while the CSI 300 shed 0.11%.

Chinese electric vehicle giant BYD is set to invest $1 billion in Turkey to open a plant with an annual capacity of 150,000 vehicles, Turkey’s industry and technology minister Mehmet Fatih Kacir said on Monday.

Australia’s S&P/ASX 200 added 0.79%, even as the country’s consumer sentiment for July dipped 1.1% compared with a 1.7% increase in the previous month. Australia’s business confidence climbed 6 points to +4, according to National Australia Bank.

“Business confidence rose relatively sharply in the month and is now back into positive territory and at its highest level since early 2023,” said NAB’s Head of Australian Economics, Gareth Spence.

Investors are also looking forward to the upcoming release of the U.S. consumer price index on Thursday for hints on the Federal Reserve’s interest rate decision. Meanwhile, China’s inflation data on Wednesday will provide insights on the state of the country’s economic recovery.

Overnight in the U.S., the S&P 500 and Nasdaq closed at record highs. Earnings from some major financial giants and consumer companies are also on traders’ watchlists this week.

Asia-Pacific markets: Australia consumer sentiment, business confidence (cnbc.com)

 

European markets head for mixed open as France’s uncertain political outlook weighs on sentiment

LONDON — European stocks are expected to open in mixed territory Tuesday as investors in the region weigh up political uncertainty in France after Sunday’s election result.

The U.K.’s FTSE index is expected to open 5 points higher at 8,203, Germany’s DAX down 45 points at 18,443, France’s CAC 40 down 18 points at 7,620 and Italy’s FTSE MIB down 32 points at 34,145, according to data from IG.

European markets are digesting the prospect of a prolonged period of political uncertainty in France as it confronts a hung parliament following Sunday’s parliamentary election result. The left-wing New Popular Front won the largest number of seats in the final round of voting, scuppering an expected surge for the far-right.

The alliance failed to secure an absolute majority, however, meaning a coalition or technocratic government is on the cards, making legislation and reforms harder to pass.

Overnight, Asia-Pacific markets were mostly higher on Tuesday. U.S. stock futures were little changed Monday night after the S&P 500 and Nasdaq Composite closed at fresh record highs Monday.

There are no major earnings or data releases.

European markets: stocks, news, data and earnings (cnbc.com)

 

Stock futures are little changed after S&P 500, Nasdaq close at fresh records: Live updates

UPDATED TUE, JUL 9 2024 7:02 PM EDT

U.S. stock futures were little changed Monday night after the S&P 500 and Nasdaq Composite closed at fresh record highs.

Dow Jones Industrial Average futures rose 39 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures climbed 0.12% and 0.18%, respectively.

The S&P 500 and Nasdaq Composite closed Monday’s trading session at all-time highs again, each rising slightly as investors awaited key inflation data and earnings results due out later this week. The broad market index closed up 0.1%, while the tech-heavy Nasdaq gained 0.3%. Meanwhile, the Dow Jones Industrial Average was the laggard, closing down 31 points, or 0.1%.

The S&P 500 continued its advance as easing pricing pressures, and slowing growth, have investors increasingly optimistic the Federal Reserve will soon start to ease up on monetary policy. But others, who are concerned a correction is on the horizon, are urging investors to broaden their exposure.

---- Federal Reserve Chair Jerome Powell will testify this week before Congress as part of his semiannual update on monetary policy. Powell will speak first to the Senate Banking Committee on Tuesday, followed by an appearance Wednesday before the House Financial Services Committee.

Key inflation data is due out later this week with the June consumer price index on Thursday, as well as the producer price index on Friday.

On the earnings front, PepsiCo and Delta Air Lines are set to post results on Thursday. Bank earnings results from Citigroup and JPMorgan Chase are due out Friday.

Stock market today: Live updates (cnbc.com)

In other news, a US stock correction warning from Morgan Stanley. Fighting talk from President Biden Joe Biden.  German exports miss.


Warning of a Third Quarter Stock Market Correction

July 8, 2024 at 11:57 PM GMT+1

The bigger they come, the harder they fall—and perhaps sooner rather than later. The stock market these days is looking pretty big, so it should come as no surprise that yet another wise voice has been lent to the choir singing the notes of correction.

Morgan Stanley’s Mike Wilson is warning that traders should brace for a significant pullback in the stock market as uncertainty swirls around the US presidential campaign, corporate earnings and Federal Reserve policy.

“I think the chance of a 10% correction is highly likely sometime between now and the election,” Wilson said in an interview with Bloomberg Television Monday. The third quarter is “going to be choppy.”

----Just in case they didn’t hear him the first few times, US President Joe Biden effectively yelled at his fellow Democrats on Monday to move on.

After more than a week of beltway talking heads analyzing whether he would step back, and a steady trickle of calls from his side of the aisle to do so, Biden had apparently had enough.

“I am firmly committed to staying in this race, to running this race to the end, and to beating Donald Trump,” he wrote in a two-page letter addressed to Democratic lawmakers. “Any of these guys who don’t think I should run, run against me. Go ahead. Run for president. Challenge me at the convention.”

Bloomberg Evening Briefing: Warning of a Third Quarter Stock Market Correction - Bloomberg


German exports fall more than forecast in May

July 8, 2024

(Reuters) -German exports fell more than expected in May, due to weak demand from China, the U.S and European countries, data from the federal statistics office showed on Monday.

Exports fell by 3.6% in May compared with the previous month, compared with the 1.9% decrease forecast by analysts in a Reuters poll.

The foreign trade balance showed a surplus of 24.9 billion euros ($26.94 billion) in May, following 22.2 billion euros in April and 16.8 billion euros in May of the previous year.

Exports to EU countries dropped by 2.5% in May on the month and exports to countries outside the EU declined by 4.9%, the statistics office reported.

German exports fall more than forecast in May (msn.com)

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

You may be sure that the Americans will commit all the stupidities they can think of, plus some that are beyond imagination.

Charles de Gaulle.

Inflation data, Powell speaks, and big banks report earnings: What to know this week

July 7, 2024

A reading on inflation and the start of second quarter earnings reports will greet investors after a holiday-shortened week that saw stocks close near record highs. 

With job growth slowing, investors will be closely watching the release of June's Consumer Price Index (CPI) on Thursday as the case builds that the Federal Reserve could be set to cut interest rates in September. Semiannual testimony from Federal Reserve Chair Jerome Powell before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday will also be a key focus for investors.

On the corporate side, Friday morning will see some of America's largest financial institutions, including JPMorgan (JPM), Wells Fargo (WFC), and Citi (C), kick off second quarter earnings season. Results from PepsiCo (PEP) and Delta Air Lines (DAL) will also be in focus earlier in the week. 

---- On Friday, the June jobs report showed the US economy added more jobs than expected last month. But economists found several signs of a slowing labor market in the details of the report. 

The unemployment rate rose to 4.1%, its highest level since November 2021. Meanwhile, job gains for April and May were revised lower by 111,000, showing the labor market's robust gains over the past several months weren't as solid as initially thought. 

Several economists believe this print will lead the Federal Reserve to cut interest rates in September. 

"The June jobs report showed more signs of cooling in the labor market, with job growth including revisions weaker than expected, the unemployment rate rising and earnings growth slowing," Oxford Economics lead US economist Nancy Vanden Houten wrote in a note to clients. 

"Federal Reserve officials have become increasingly focused on the downside risks to the labor market and the June data bolster our forecast for the Fed to cut rates in September and at every other meeting thereafter."

Renaissance Macro's head of economics Neil Dutta wrote in a note to clients on Friday that the report should "firm up expectations of a September rate cut."

"Economic conditions are cooling and that makes the trade-offs different for the Fed," Dutta added, "Powell should use July to set up a September cut."

More

Inflation data, Powell speaks, and big banks report earnings: What to know this week (msn.com)

Covid-19 Corner

This section will continue until it becomes unneeded.

Second gentleman Doug Emhoff tests COVID-19 positive

July 8, 2024

(UPI) -- Second gentleman Doug Emhoff has again tested positive for COVID-19, his director of communications said.

Emhoff, who is fully vaccinated against the virus, was tested Saturday after experiencing mild symptoms, Liza Acevedo said Sunday in a statement on X.

Acevedo said Emhoff is currently asymptomatic and was working remotely from home.

Vice President Kamala Harris was also tested for COVID-19 "out of an abundance of caution," and her results returned negative, Acevedo said. Harris is also fully vaccinated.

Emhoff previously contracted the virus in March 2022.

The second gentleman was at the White House on Thursday for Independence Day celebrations. UPI photographed him standing near President Joe Biden on the Truman Balcony as they took in celebratory fireworks with their wives.

It was unclear early Monday if Biden had been tested for COVID-19 following Emhoff's diagnosis.

Second gentleman Doug Emhoff tests COVID-19 positive (msn.com)

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

New hybrid perovskite solar cell boasts long life and high efficiency

Michael Irving  July 07, 2024

In the world of solar cell technology, perovskite materials are poised to take on the current reigning champion silicon, but their stability is holding them back. Now, scientists in China have developed a new type of hybrid perovskite that boasts a very good efficiency over a long life.

Silicon has been the go-to material for solar cells for decades, but the tech is beginning to bump up against its theoretical efficiency cap of just under 30%. Perovskite has emerged in the last 15 years or so as a promising challenger, with its efficiency rapidly approaching that of silicon, while also being cheaper, lighter and more flexible.

But as with everything, there’s a catch: perovskite is vulnerable under exposure to the elements, and tends to break down quickly. That’s of course not ideal for products designed to sit outside in direct Sun every day, so finding ways to stabilize the material is important.

Scientists from Zhejiang University in China have now developed a sturdy new type of perovskite solar cell. The new design uses a structure they call a high entropy hybrid perovskite (HEHP), which essentially combines ordered inorganic layers and disordered organic layers, which boosts its resistance to water and heat stress. In tests, the cells maintained 98% of their efficiency after 1,000 hours of light exposure, and is calculated to follow that same trajectory for more than 5,000 hours. That initial efficiency reached 25.7%, which is respectable for many solar cell types.

The team says this particular perovskite material should be applicable to a variety of different cell architectures. Along with other protective coatings and additives in the works, giving them a longer life could really take the brakes off perovskite solar cells.

The research was published in the journal Nature Photonics.

New hybrid perovskite solar cell boasts long life and high efficiency (newatlas.com)

Next, the world global debt clock. Nations debts to GDP compared.  

World Debt Clocks (usdebtclock.org)

Belgium is a country invented by the British to annoy the French.

Charles de Gaulle.

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