Asian stocks rose, following strong gains in Europe, although weaker-than-expected earnings from Samsung weighed on the Kospi which fell 0.2%. The Nikkei and the Hang Seng both rose 1.5% and the ASX was 0.9% higher. (Financial Times)(Bloomberg)
TODAY: US non-farm payrolls. Consensus forecast is for an increase of 165,000 jobs in June. (Financial Times)
Samsung Q2 profits disappoint, despite record: In a preliminary estimate ahead of more detailed figures to be released later this month, Samsung said it expected to report operating profit for the period of Won9.3-9.7tn ($8.2-8.5bn), compared with Won8.8tn in the first quarter. Analysts polled by Bloomberg before the release produced a consensus forecast of Won10tn. Some analysts wondered whether the results meant the company's smartphone growth was peaking. (Financial Times)(Reuters)
Morsi supporters plan rally today: "Islamist supporters of Egypt's ousted president, Mohamed Mursi, will rally on Friday to express their outrage at his overthrow by the army and to reject a planned interim government backed by their liberal opponents." (Reuters)
Portugal's government avoids collapse: Prime minister Pedro Passos Coelho said he had received assurances yesterday of continued backing from the junior partner in his centre-right coalition, despite the resignation of its leader, Paulo Portas, as foreign minister. The two parties had "found a formula to maintain government stability", he said after hours of talks with Portas. Yields on the country's 10-year sovereign yields fell back to 7.19% from a high of 7.9% on Wednesday. (Wall Street Journal)(Financial Times)
Greece's finance minister expressed optimism that talks with troika auditors will be concluded in time for next week's meeting of eurozone finance ministers that will decide whether to unlock further aid to the country. "We are heading for a political agreement on Monday," Yannis Stournaras said after a three-hour meeting with troika officials and prime minister Antonis Samaras. (Wall Street Journal)
China suspends industry-specific data from official manufacturing PMIs: "We now have 3,000 samples in the survey, and from a technical point of view, time is very limited -- there are many industries, you know," Cai Jin, vice president of the China Federation of Logistics & Purchasing, which compiles the data with the National Bureau of Statistics, told reporters yesterday in Beijing. (Bloomberg)
Asia-Pacific fund flows reported their first inflows in six weeks, showing investors are feeling more confident in the region after being spooked in late May by tapering talk. (FastFT)
COMMENT AND CURIOS:
- Gavyn Davies: We are all forward guiders, now. (Financial Times)
- Martin Wolf: Despite massive expectations, Carney's BoE mission can succeed. (Financial Times)
- Bruce McCullough and making economics less dismal. (Wall Street Journal)
- Bard Harstad: Pay countries to keep fossil fuels in the ground. (Financial Times)
- Worries mount for German Mittelstand. (Reuters)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +224.99 (+1.60%) at 14,244
Topix up +16.41 (+1.40%) at 1,187
Hang Seng up +297.88 (+1.46%) at 20,767
US markets
S&P 500 up +1.33 (+0.08%) at 1,615
DJIA up +56.14 (+0.38%) at 14,989
Nasdaq up +10.27 (+0.30%) at 3,444
European markets
Eurofirst 300 up +28.09 (+2.44%) at 1,179
FTSE100 up +191.80 (+3.08%) at 6,422
CAC 40 up +107.30 (+2.90%) at 3,809
Dax up +164.99 (+2.11%) at 7,994
Currencies
€/$ 1.29 (1.29)
$/¥ 100.29 (100.03)
£/$ 1.50 (1.51)
Commodities ($)
Brent Crude (ICE) down -0.10 at 105.44
Light Crude (Nymex) down -0.21 at 101.03
100 Oz Gold (Comex) down -9.20 at 1,243
Copper (Comex) down -0.05 at 3.12
10-year government bond yields (%)
US 2.53%
UK 2.38%
Germany 1.65%
CDS (closing levels)
Markit iTraxx SovX Western Europe +2.03bps at 100.63bp
Markit iTraxx Europe -4.62bps at 111.93bp
Markit iTraxx Xover -18.68bps at 445.98bp
Markit CDX IG -0.51bps at 85.44bp
Sources: FT, Bloomberg, Markit
