World Markets Live - July 17 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 17

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

  • At the market open, Firan Technology posted Q2 earnings of 1 Canadian cents per share. Net profit was C$105,000 on sales of C$25.5 million. Sales rose 29 percent during the quarter.
  • The ECB has posted a list of its latest asset purchases. Cumulative public sector assets bought and settled total 1,637,000 million euros.
  • The Canadian dollar has recovered from earlier dips and strengthened to a 14-month high of C$1.2635 to the dollar in today's session.
     
     
  • The July Empire State manufacturing survey was released by the New York Fed earlier today. The main index fell to 9.8 from 19.8, below consensus expectations.
     
    Ian Shepherdson, chief economist at Pantheon Macroeconomics, says the huge jump in June was always unsustainable after the May reading of -1.0, so a correction was a good bet.
     
    The July index fell further than we expected, but the key sub indexes remain quite strong. New orders dipped to 13.3 from  18.1, and shipments dropped to 10.5 from 22.3. Our weighted average of the major sub indexes, which mimics the construction of the national ISM manufacturing index, points to the latter slipping to a still-robust 56 or so, from 57.8 in June.
     
    The Empire State survey is not the last word, though; we need to see the Philly Fed and Chicago PMIs before we can finalize our forecasts; all three are volatile month-to-month.
     
  • Blue Apron shares have dropped sharply, falling 7 percent to an all-time low during today's session, after reports suggest Amazon will get into the meal-kit business.
     
     
    Reports that Amazon will bring its huge scale to the meal-kit market is bad news for smaller players such as Blue Apron. Reports are that Amazon has registered a trademark in the U.S. for a service described as: "We do the prep. You be the chef." That's according to a filing uncovered by The Sunday Times in the U.K.
     
    This follows Amazon's acquisition of Whole Foods, which previously sent jitters through the food retail market.
     

    Blue Apron hits all-time low as Amazon suggests it will get into the meal-kit business

    Blue Apron shares hit an all-time intraday low of $6.51 a share, according to FactSet.
     
  • An hour into U.S. trade and the markets remain mixed, trading close to flat.
     
     
    Financials are lagging in the market today. BlackRock shares are down 3 percent after its Q2 earning missed estimates. It is at the bottom of the S&P 500.
     
     
  • Fitch Ratings has published a warning that last year emerging markets ran their first aggregate annual current account deficit (CAD) for 17 years.
     
    The deficit for emerging markets was the largest since 1998, both in dollar terms and as a percentage of GDP. 
     
    The report from Fitch warns the deterioration was driven by a drop in commodity prices, a narrowing in China's surplus, and the effect of abundant global liquidity conditions. Fitch forecasts the deficit will widen further in 2017 to its highest level in U.S. dollar terms since at least 1990. 
     
    The EM aggregate CAD in 2016 was moderate at $38 billion (0.1 percent of GDP), although this represents a marked deterioration from a surplus of $216 billion in 2013 at the time of the "taper tantrum" amid market concerns about EM external. 
  • Wall Street could see a pullback of 3 to 5 percent in August, BTIG's Katie Stockton says. The strategist explained to CNBC why she was worried about a pullback.
     
    Right now, support for the S&P 500 is around 2,400. That's the previous breakout point. I look at the market from a bottom up perspective as well. If I start to see a lot of breakdowns ... that's when I get nervous.

    But after the pullback, she predicts the S&P 500 could reach 2,640 in the more intermediate term.
     
    Last July, Stockton predicted the S&P 500 would make a move to 2,400. The index was trading around 2,135 at the time. In May, the S&P closed above 2,400 for the first time ever.
     
    Today, the S&P is trading around 2,461.
     

    Get ready for a big August pullback, says analyst who called last summer's rally

    But after that, BTIG's Katie Stockton predicts the S&P 500 could reach 2,640 in the more intermediate term.
  • Bitcoin prices have fallen sharply in recent sessions. The crypto currency is making some recovery today, up 7 percent to around $2,064. This is well off the highs seen in mid-June when the digital asset was flirting with the $3,000 level.
     
     
    Ethereum, the other major digital currency,  is experiencing similar problems. It is down around 50 percent from its high in mid-June when it closed on the $400 mark.

     
    Coindesk's Pete Rizzo suggested mainstream interest in crypto currencies may be waning, weighing on the price. The scaling issue facing both bitcoin and ether also seems to be coming to a head; the popularity of both assets means their respective blockchains cannot cope with the number of transactions they are required to make. This is slowing down transactions and causing delays. However, the community is divided on how to scale up the blockchain technology underpinning the digital currencies.
  • We're close to the market close for European markets now. The pan-European Stoxx 600 is flat, up just 0.05 percent, but the individual bourses are more volatile.
     
     
  • The Bbank of Japan is expected to maintain its current monetary policy unchanged at its upcoming meeting ending July 20, according to new research from Danske Bank Markets' analysts Morten Helt and Bjørn Tangaa Sillemann.
     
    It is widely expected that the BoJ will keep its monetary policy unchanged, especially after it earlier this month demonstrated its strong commitment to yield curve control by announcing an unlimited fixed-rate purchase of 10Y JGBs. The announcement should not have any significant impact on price actions. 

    We expect EUR/JPY to trade in the range of 127-131 in coming months, targeting 128.8 in 1-3 months. 
     
    The ECB is also meeting this week to discuss monetary policy. Dankse Bank predicts the ECb will deliver only a minor hawkish twist on Thursday.
     
    (This), if anything, could add to the upside risks for EUR/JPY. Longer term, we expect EUR/JPY to continue higher driven by real interest rates and portfolio outflows out of Japan as we expect the ECB to move towards monetary policy 'normalisation' before the BoJ. We target EUR/JPY at 133.4 in 6 months and 136.88 in 12 months. 
     
    The euro is today up 26 basis points to 129.38 yen. Over 3 months, the euro has gained 12 percent against the Japanese currency.
     
     
  • Investors are keenly looking ahead to Netflix's Q2 earnings report after the bell.
     
    Shares in the company are currently trading down slightly. However, optimism about the results if evident from Instinet's decision to raise its target price for the stock from $165 to $175. Nomura has also maintained its buy rating for the stock.
     
     
    Netflix announced it topped 100 million users in its last earnings call and subscriber numbers are back in focus. The number to watch is 102 million; that's how many subscribers the company forecast last quarter.
     
    Also important is what CEO Reed Hastings forecasts about user additions over the rest of the year as the company comes up against more tough comparisons.
     
    Other big areas to watch: commentary on competition from new skinny bundles, rising content and marketing costs, and whether the company plans to move into sports. Netflix shares are up over 60 percent in the past year.
  • European markets are now closed. The Stoxx 600 finished broadly flat in a choppy day of trade.
     
     
  • Retail and basic resources were the best performing sectors. Miners lifted the FTSE after upbeat Chinese GDP data.
     
    Meanwhile, real estate and industrials lagged.
     
    Here are the best and worst performers on the Stoxx 600.
     
  • Finally, a last look at the individual European bourses, which were mixed, with some markets such as the U.K. FTSE recording strong gains while the German DAX and Portuguese PSI fell.
     
  • Returning to U.S. markets and the major indexes are as flat as a pancake.
     
     
  • Thanks for reading, we'll close the blog there. Join us tomorrow as the U.S. earnings season shifts into a higher gear with reports from several companies including Bank of America, Goldman Sachs, Johnson & Johnson, Lockheed Martin, Novartis and UnitedHealth.
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