Good morning! Here’s what you need to know in markets on Tuesday.
1. The Bank of Japan held interest rates steady on Tuesday but moved to add more flexibility to the policy framework for its stimulus programme. The Financial Times reports that Japan’s central bank once again stood firm against the global move towards tighter policy among the world’s heavy-hitting central banks, announcing that overnight interest rates would remain at minus 0.1% and that 10-year bond yields would stay capped at about 0%.
2. Standard Chartered reported a 34% rise in pretax profit for the six months to June and issued an interim dividend, as the Asia-focused bank continued to grow its revenue after years of restructuring. Reuters reports that pre-tax profit for StanChart, which focuses on Asia, Africa and the Middle East, rose to $US2.35 billion in the first half of the year, from $US1.75 billion in the same period last year.
3. Credit Suisse beat expectations with an 81% rise in pre-tax profits, to SFr 1.05 billion, in the second quarter of the year as it pushed ahead with its strategy of focusing on wealth management, but struck a cautious tone on the outlook. The Financial Times reports that the Swiss bank reported strong inflows of new assets in to its main businesses managing the finances of the world’s rich, including SFr 13.2 billion into its international wealth management business, but pre-tax profits fell in its global markets division.
4. Samsung posted a 5.7% rise in second-quarter profit on Tuesday as strong sales of semiconductors helped the South Korean tech giant defy sluggish growth in the smartphone market.Operating profit for the world’s biggest maker of memory chips and smartphones was 14.9 trillion won ($US13.4 billion) in the April-June quarter, it said in a regulatory filing, compared with 14.8 trillion won it had estimated.
5. China’s Huawei, the world’s third-largest smartphone maker, said on Tuesday first-half revenue rose 15%, thanks to solid performance in its operations. The Shenzhen-based company said revenue was 325.7 billion yuan ($US47.7 billion) while the first-half operating margin was 14%.
6. US stocks fell Monday, with the Nasdaq declining for a third-straight session, as FANG stocks remained under pressure following a wave of disappointing tech earnings. The dollar retreated against a basket of peers ahead of multiple major central bank meetings this week, and Treasury yields jumped.
7. UBS analyst Colin Langan suggests Tesla’s newly-revised pricing strategy is intended to set the company up to raise more money in the fourth quarter. Tesla is scheduled to report earnings on Wednesday, and investors will be closely watching results and subsequent commentary.
8. Oil spiked more than 1.5% on Monday despite OPEC production hitting its highest level of the year, as US-Iran relations kept traders on edge.US West Texas Intermediate is down 0.2% to $US69.91 at the time of writing (6.55 a.m. BST/1.55 a.m. ET) and Brent oil is flat at $US74.70.
9. Goldman Sachs closely monitors a measure called “breadth,” which assesses the degree to which the market’s returns are being driven by a small handful of stocks. The firm’s breadth signal is flashing yellow, and Goldman says investors should be wary of a meltdown.
10. Uber is ending its self-driving truck program, TechCrunch first reported. An Uber representative confirmed the news to Business Insider and said the company had determined that developing autonomous trucks was not necessary to stay competitive in the freight logistics industry.
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