Five Things You Need to Know to Start Your Day
China to release a slew of economic data, the Trump-Putin summit gets underway, and markets assess if the recent rally in stocks can sustain itself. Here are some of the things that people in markets are talking about.
Economists forecast China will report second-quarter GDP growth slowed to 6.7 percent from 6.8 percent in the previous quarter. That would underscore concerns that the trade spat with the U.S. is already starting to have an impact on the world’s biggest trading nation. There’s also retail sales and industrial production data for June.
Donald Trump warmed up for his meeting with Vladimir Putin by labeling the EU a "foe" on trade, while playing down expectations for his talks with Russia's leader. The president said he "might" ask Putin to extradite 12 Russian intelligence officers indicted for hacking the Democratic Party in an effort to influence the 2016 election. "I hadn't thought of that," he told CBS.
Foreign Firms Barred
Chinese investors will be barred from trading in shares of dozens of foreign companies and those with weighted-voting rights such as Xiaomi Corp. as regulators seek to shield mainland retail investors using the stock link with Hong Kong from less widely understood securities. The Shanghai Stock Exchange’s exclusion also covers stapled securities -- when two or more securities are linked together -- according to a July 14 statement. The decision creates an exception to current rules allowing all of Hang Seng Composite Index’s mid- and large-cap shares to trade in Hong Kong through the stock link. Hang Seng Indexes had planned to make the three asset classes available for inclusion in its indexes in the third quarter.
Asian markets were set for a mixed start to the week and, with Japan closed for a public holiday, volumes will likely be weaker. Equity index futures nudged lower in Australia and were slightly higher in Hong Kong. U.S. equities eked out gains on Friday, when 10-year Treasury yields clung to their first weekly advance in five. The data dump in China may provide some clues as to how the economy there is performing amid heightened tensions with America and, with earnings season ramping up, investors may get a greater understanding of the trade spat’s impact on the corporate bottom line.
Vale and Rio Tinto are the first of a quartet of top miners to issue quarterly production numbers this week. The Brazilian producer probably churned out a record 96.3 million tons of iron ore in the second quarter, while its rival is on track to meet its full-year target of as much as 340 million. BHP and Anglo American offer their updates later this week.
What we’ve been reading
This is what caught our eye over the last 24 hours.
- While economists guess at the impact of the trade war...
- ... Here's how a $139 billion fund is trading it.
- Airbus Airbus nears a blockbuster $23 billion jet sale to AirAsia.
- A World Cup win gives France something to bask in.
- U.S. lifts ban on ZTE.
- Meet Asia’s new richest man.
- Rolls-Royce is building a flying taxi.
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