Daily Briefing – Monday, July 24, 2017
CIPs in Europe this morning are disappointingly bad, this after last week’s crash in UK housing and public borrowing. Only French manufacturing provides some light with a better than expected drop to 55.4 in July. Over the weekend, the IMF downgraded UK GDP growth projections for 2017 from 2% to 1.7%.
Morgan Stanley has once again warned against the US debt ceiling in light of government disfunctionality, despite strong growth since the start of the year. Meanwhile, the IMF also cut its forecast on US growth for 2017-2018 from 2.3 to 2.1%. Stock futures were down as the week ended as earnings season volatility increases and a Fed meeting on policy and interest rates looms heavily over Wednesday.
Asian equities were pressured downwards overnight by dollar declines and commodity pullbacks. Australian and Japanese indexes closed in the red – Aussie bank shares down and Japanese exports suffering on a 0.2% uptick in the Yen. Japanese data this morning shows a slight drop in manufacturing to 52.2 in July.
Earnings season hits high pitch this week, with AT&T reporting today at the New York opening, McDonalds tomorrow, Coca Cola, Facebook and PayPal on Wednesday, and Amazon, Intel and Starbucks on Thursday.
OPEC members are meeting in St. Petersburg today to convince Nigeria and Libya to comply with the organization’s production freeze agreement. Capping supply, however, may not be sufficient to offset US shale production increases, although Friday’s rig count shows a 1-well decrease – even as WTI plunged on the announcement by a full $2 per barrel.
|1:45 PM GMT||US Manufacturing, Services & Composite PMIs followed by home sales at 2.|
|11:50 PM GMT||Japan: Monetary policy meeting.|