The HSI rebound continues after the government's market boost in China
APAC equity markets rose overnight in the wake of Monday's US session. Hong Kong's Hang Seng continued to outperform after the Chinese Finance Minister announced on Sunday that he would cut by half the stamp duty on stock trading.
APAC equity markets
APAC equity markets rose overnight in the wake of Monday's US session. Hong Kong's Hang Seng continued to outperform after the Chinese Finance Minister announced on Sunday that he would cut by half the stamp duty on stock trading. After 17 months of suspension, Evergrande is trading again. The stock fell 79% on Monday and lost more ground overnight.
In Japan, Toyota is suspending operations at all assembly plants in the country due to a problem with its production system. The automaker has already halted 12 of its 14 The last two will stop all activity on Tuesday afternoon. According to Reuters, these 14 plants in Japan account for around a third of Toyota's global production.
Japan's unemployment rate
Japan's unemployment rate unexpectedly increased to 2.7% in July from 2.5% in June, defying market forecasts for no change. This was the highest jobless rate in four months.
The British retail consortium
Prices in British store chains rose in August at the slowest pace in nearly a year, according to the British retail consortium. Annual shop price inflation cooled to 6.9% in August, its lowest since October 2022, weakening from 7.6% in July. Food price inflation fell to 11.5% from July's 13.4%.
The GfK consumer confidence
In Germany, GfK consumer confidence unexpectedly fell to -2.25 in September. Economists had anticipated a small increase from the 24.6 recorded last month.
Over in the US, the market awaits S&P/Case-Shiller home prices at 2 p.m., expected to rise by 0.6% in June. At 3 p.m., JOLT's job openings are forecast to fall for the third month in a row to just under 9.5 million. This would be the lowest level of openings since May 2021. Also at 3 p.m., conference board consumer confidence was seen at 116 in August, one notch lower than in July.
US equity markets
On the equity market, watch out for Bunzl shares at the open. The business supplies distributor raises its annual adjusted operating profit forecast on the back of lower operating costs and as acquisitions pay off.
Over in the US, the market awaits a few important corporate reports, starting with Best Buy at lunchtime. The electronics retailer hasn't had the best time recently, as it had to deal with too much inventory, which had a negative effect on its profits and margins. In the second quarter, Best Buy's earnings are forecast at $1.07 per share, to be compared to the $1.54 recorded in the same quarter a year ago. Revenue should reach $9.52 billion. But any positive news on the level of the stock could support it.
Inventories are also a concern for HP, which will report on Tuesday after the close of the US market. The PC and printer maker is seen posting earnings of 86 cents per share, down 17% on the same quarter last year. Revenue is also expected to fall by 8.5% to 13.38 billion. HP shares have been on a slow but steady rise since October last year and hit a 52-week high in July, when a Gartner survey said that a gradual increase in demand contributed to an inventory reduction in the sector.
Hewlett Packard Enterprise
As for Hewlett Packard Enterprise, it will also report tonight after the bell. The enterprise-level hardware and software maker is forecast to post earnings of 47 cents per share, on cent lower than the same quarter a year ago. Investors will be particularly attentive to the group's performance in the new hot AI sector. In Q1, AI segment accounted for 3.8 percentage points of a 12.2% net revenue increase, in Q2, it contributed 1.9 percentage point to a 8.1% revenue rise.
In Q3, revenue is seen rising by 0.7% year-on-year (YoY) to just under $7Bln. The pace of revenue growth is not a new problem. It is mainly due to a decline of the hardware side of the business, and investors want to see AI as a new growing source of revenue.
Brent and WTI
Little moves on Brent Oil and WTI on Tuesday. The scenario remains the same. there are concerns over demand and possible US rate hikes, but these are offset by tight supplies. A tropical storm hit western Cuba yesterday and is heading towards Florida. It is likely to cause power outages and disrupt oil production on the eastern side of US Golf coast.
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