Weekly Insight July 23 | Harris Fraser
Research Insights
23 July, 2021
Weekly Insight July 23

Weekly Insight July 23

 usaUS

While the Delta variant continued to threaten global markets, steady economic figures in the US and the positive Q2 corporate earnings bolstered US equity performance, with the Dow, S&P 500 and NASDAQ gaining between 0.17% and 0.97% over the past five days ending Thursday. According to the World Health Organization, the Delta variant is spreading rapidly across the globe, with records showing that the strain is now present in more than 104 countries. At the moment, there are approximately 580,000 daily COVID cases worldwide, up from a low of around 300,000 in June. 
Nevertheless, the market is also watching Q2 US corporate earnings closely. Of the 111 S&P 500 constituents reporting, about 87% beat market expectations, reflecting the continued strong earnings momentum of US companies. In particular, Goldman Sachs, Citi, and Wells Fargo all beat market expectations by at least 40% in their quarterly net profits. Tech giants such as Amazon, Apple, Facebook, and Microsoft will also announce their Q2 results by the late July. Next week, the Federal Reserve will hold its interest rate meeting, and the US will release its preliminary GDP for the 2021 Q2

euroEurope

Recent performance of European equities pales in comparison to that of the US, with the STOXX 600 index only up 0.39% over the past five days ending Thursday. The ECB kept interest rates and the size of its bond purchases unchanged after the interest rate meeting, but revised its forward guidance on inflation, noting that the ECB want to see inflation at 2%. President Christine Lagarde said the current pick-up in inflation is expected to be transitory, and expects it to rise further in the coming months before subsiding early next year. Lagarde said that there will be no premature tightening of monetary policy. On the economic front, the Eurozone manufacturing PMI for July was 62.6, slightly above market expectations of 62.5. Next week, the Eurozone will release the preliminary GDP for Q2 2021, the unemployment rate for June and the CPI data for July.

chinaChina

Recent performance of European equities pales in comparison to that of the US, with the STOXX 600 index only up 0.39% over the past five days ending Thursday. The ECB kept interest rates and the size of its bond purchases unchanged after the interest rate meeting, but revised its forward guidance on inflation, noting that the ECB want to see inflation at 2%. President Christine Lagarde said the current pick-up in inflation is expected to be transitory, and expects it to rise further in the coming months before subsiding early next year. Lagarde said that there will be no premature tightening of monetary policy. On the economic front, the Eurozone manufacturing PMI for July was 62.6, slightly above market expectations of 62.5. Next week, the Eurozone will release the preliminary GDP for Q2 2021, the unemployment rate for June and the CPI data for July.

Weekly Insight July 23

Weekly Insight July 23

 

Build Lasting Wealth Today.

ハリス・フレイザーと投資の旅を始めましょう

お問合せ