ASX slips, Wall St lower

On Wall Street, stocks fell, driven by losses in the Dow. Real estate leading all 11 S&The P 500 industrial sector fell.

Today’s agenda

Local: Second-quarter retail sales volume at 11.30 AEST; New Zealand second quarter jobs data at 8.45am AEST

Overseas data: July services PMI for China (Caixin), Japan (Nikkei), Eurozone (Markit) UK (Markit), US (Markit); Eurozone June PPI, June retail sales; US June factory and durable goods orders, July ISM non-manufacturing index

Market spotlight

ASX futures fell 14 points, or 0.2 percent, to 6893 near 06:30 AEST

• AUD -1.5% to 69.20 US cents
• Bitcoin +0.2% to $US23,039.74 by 06:30 AEST
• On Wall St: Dow -1.2% S&P 500 -0.7% Nasdaq -0.2%
• In New York: BHP -2.2% Rio -1.6% Atlassian +1.7%
• Tesla +1.1% Apple -0.9% Amazon -0.9% Netflix -2.1%
• In Europe: Stoxx 50 -0.6% FTSE -0.1% CAC -0.4% DAX -0.2%
• Spot gold -0.01% to $US1771.97 per ounce at 1:59 pm New York time
• Brent crude +1.7% to $101.69 per barrel
• Iron ore +0.4% to $113.30 per tonne
• 10-year yield: US 2.75% Australia 2.97% Germany 0.81%
• US prices start at 4:33 pm in New York

United States of America

After years of losing the top spot, JPMorgan Chase & Co’s equity trading business eventually rose to No. 1 on Wall Street.

Between April and June, the bank’s revenue from business outperformed both Goldman Sachs Group and Morgan Stanley for the first time in a quarter since at least 2006, reaching nearly $3.1 billion. Further down the rating, Friday’s string of strong results for equity unit BNP Paribas means it has outpaced Barclays this quarter.

U.S. household debt increased 2 percent to $16.2 trillion in the second quarter, with mortgages, auto loans and credit card balances all seeing appreciable increases, according to a report by the New York Federal Reserve Bank.

The increase in lending, which was the equivalent of $312 billion over three months, partly reflects higher home and car prices. Americans are also using more of their credit cards to cover rising costs amid decades of high inflation.

US job openings fell in June to a nine-month low, suggesting tightening in the labor market has eased somewhat amid mounting economic pressure.

The number of available positions fell to 10.7 million this month from an upwardly revised 11.3 million in May, the Labor Department’s Job Opening and Employment Turnover Survey, or JOLTS, showed. The drop of 605,000 was the biggest since April 2020.

The opening rate was lower than all but one forecast in a Bloomberg survey of economists.

Europe

European stocks fell on Tuesday as weak global factory data fanned fears of an economic slowdown.

The pan-European STOXX 600 slipped 0.2 percent.

“After the best month for the STOXX 600 in July, European equities returned some of those gains to start August, suggesting the rally was a bit overdone,” said Victoria Scholar, chief investment officer at Interactive Investors.

In Europe, miners were among the biggest drags, falling 1.4 percent amid falling commodity prices as traders rushed to safer assets.

Semiconductor stocks such as ASML Holding, ASM International and BE Semiconductor fell between 1.2 percent and 2.2 percent.

Meanwhile, Moody’s Investors Service flagged an increased risk of stagflation in European Union countries.

Across European indices, Britain’s FTSE 100 fell the least of its European peers thanks to heavy gains from oil giant BP, whose shares rose 2.8 percent.

Maersk rose 2.1 percent after raising its 2022 profit guidance for the second time following a drop in quarterly revenue, as its congested supply chain increased shipping rates.

Ferrari rose 1.1 percent after beating revenue forecasts and reporting record orders for the second quarter, prompting the luxury sports car maker to also raise its full-year target.

Commodity

Dalian and Singapore iron ore futures rose in a volatile session on Tuesday, as traders focused on improving steel margins in China’s leading steelmaker, while weighing the prospect of further production cuts.

The most-traded iron ore, for September delivery, on China’s Dalian Commodity Exchange ended afternoon trading 1.5 percent higher at 807 yuan ($119.32) a tonne, near Monday’s four-week high of 817.50 yuan.

On the Singapore Stock Exchange, the benchmark September steelmaking materials contract was up 0.7 percent at $115.50 a tonne, at 0725 GMT, but off the previous session’s four-week peak of $120.95.

Copper edged lower on Tuesday alongside global equities as tensions between China and the United States and a string of weak economic data pushed investors into safer assets.

Benchmark copper on the London Metal Exchange (LME) was down 0.1 percent at $US7815 a tonne at 1626 GMT, after falling as low as $US7665.

Russian metals producer Nornickel said sales of nickel, palladium and platinum fell in the first half of 2022 due to disrupted supply chains, while net profit rose 18 percent to $5.1 billion on a stronger ruble.

#ASX #slips #Wall