Finance

US equities rise despite weakening Chinese economic data


US equities rose on Monday as the rally on Wall Street continued as traders prepared for a big week for retail earnings.The move came despite disappointing economic data out of China, where the country’s central bank cut rates unexpectedly, raising concern over China’s economic recovery.

Investors await quarterly reports from big retailers this week, with comments from Walmart and Target likely to set the tone for the sector that is facing the brunt of weak demand.

The US economic calendar this week also brings July retail sales and housing market data.

On the ASX today stocks reporting include Seek (ASX:SEK), Challenger (ASX:CGF) & BHP (ASX:BHP).

Overnight the Dow Jones Industrial Average 0.45 per cent. The S&P 500 rose 0.4 per cent while the Nasdaq Composite edged 0.62 per cent higher.

The move came despite disappointing economic data out of China, where the country’s central bank cut rates unexpectedly, raising concern over China’s economic recovery.

Stocks opened the session lower, led by declines in energy and financials, before rebounding into positive territory. Consumer staples, communication services and consumer discretionary moved higher, while Tesla pulled technology into positive territory.

Disney gained on news of hedge fund Third Point taking a stake in the company and is pushing for a spinoff of ESPN and integration of Hulu directly into Disney+. Streaming/media names outperformed overnight.

Across the sectors the worst performer was energy as US crude prices on Monday extended a run of declines that have erased all gains since the Russian invasion of Ukraine and highlighted concerns about the impact of slowing global growth spreading across commodity markets. Airlines among best performers and food names saw good gains. Industrial metals, agricultural chemicals, also sold off. Transports, credit cards, banks, IT equipment, machinery, and entertainment lagged the market.

Currencies

One Australian dollar has fallen almost 1 cent compared to the US dollar yesterday, buying 70.22 US cents

Commodities

Iron ore futures are pointing to a 1.9 per cent fall.

Gold prices slid 1% on Monday as the dollar strengthened and as investors turned cautious in the run-up to minutes of the previous U.S. Federal Reserve policy meeting on Wednesday

Silver was down $0.43 or 2.1 per cent to US$20.41 an ounce.

Copper was down $5.10 or 1.4 per cent to US$361.75 a pound.

Futures

The SPI futures are pointing to a 0.3 per cent gain..

Ex-dividends

There are six companies set to trade without the right to a dividend.

Advanced Share (ASX:ASW) is paying 0.5 cents fully franked
Computershare (ASX:CPU) is paying 30 cents unfranked
Dicker Data (ASX:DDR) is paying 13 cents fully franked
Genworth Mortgage (ASX:GMA) is paying 12 cents fully franked
GQG Partners (ASX:GQG) is paying 1.9925 cents unfranked
Plato Inc Max (ASX:PL8) is paying 0.55 cents fully franked|

Dividends payable

There is one company set to pay eligible shareholders today.

Partners Group Global Income Fund (ASX:PGG)

Figures around the globe

Across the Atlantic, European markets closed higher. Paris gained 0.3 per cent, Frankfurt added 0.2 per cent and London’s FTSE closed 0.1 per cent higher.

Asian markets closed lower.. Tokyo’s Nikkei gained 1.1 per cent, Hong Kong’s Hang Seng lost 0.7 per cent and China’s Shanghai Composite closed flat.

Yesterday, the Australian sharemarket gained 0.5 per cent to 7064.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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