Friday 29 Mar 2024
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SYDNEY/NEW YORK (July 10): Stocks in Asia look set to extend recent gains, following U.S. shares higher, amid optimism the upcoming earnings season will be sufficiently robust to overshadow a rise in trade tensions. The dollar gained versus major peers and Treasuries retreated.

Futures rose on indexes in Japan, Hong Kong and Australia after the S&P 500 Index climbed for a third day toward the upper end of its trading range. The pound erased gains after pro-Brexit official Boris Johnson quit as U.K. foreign secretary throwing the U.K. government into turmoil over negotiations to leave the European Union. The euro steadied and the yen slipped.

With JPMorgan Chase & Co. and Wells Fargo among those companies kicking off earnings season later this week, there’s hope that strong results can buffet a run of positive economic data. While trade tension may have put a lid on investment gains, it has done little to estimates for profits which are still expected to grow at 20 percent in the second quarter.

Elsewhere, crude’s rally in New York faded as a key oil-sands facility in Canada prepared to resume operations. Terminal users can read more in Bloomberg’s Markets Live blog.

These are some events to look out for this week:

* Chinese trade data due at the end of the week will probably show slightly slower export growth, after early indicators pointed to softer overseas demand and weaker export orders, Bloomberg Economics said. China releases June PPI and CPI on Tuesday, both of which should show a pickup.

* The most noteworthy U.S. data is the June inflation report on Thursday, which consensus expects will show both headline and core price growth picking up. There’s another deluge of Treasury debt sales too, with a total $156 billion of notes and bills offered.

* Earnings season gets going with JPMorgan and Citigroup among the largest companies due to give results, as well as India’s Infosys Ltd. 

Here are the main market moves:

Stocks

* Futures on Japan’s Nikkei 225 rose 0.5 percent in Singapore.

* Futures on Hong Kong’s Hang Seng and Australia’s S&P/ASX 200 Index added 0.4 percent.

* The S&P 500 rose 0.9 percent its third day of gains.

Currencies

* The Bloomberg Dollar Spot Index rose 0.1 percent.

* The euro was little changed at $1.1749. 

* The pound held at $1.3251.

* The Japanese yen was at 110.83 per dollar.

Bonds

* The yield on 10-year Treasuries gained four basis points to 2.86 percent, the highest in a week.

Commodities

* The Bloomberg Commodity Index slid 0.1 percent.

* West Texas Intermediate crude rose 0.1 percent to $73.85 a barrel.

* Gold futures were flat at $1,257.77 an ounce.

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