Here is what you need to know.
Stock markets in the US are at record highs. Tuesday’s rally ran both the Dow Jones Industrial Average and S&P 500 to record highs. The Dow reached 18,347.26 while the S&P settled at 2,145.25. The Nasdaq ended the day at 5022.82, 3.8% below its record peak.
OPEC oil production hit its highest level in 8 years. The International Energy Agency says OPEC oil output rose by 400 kilo barrels per day in June to an eight-year high of 33.21 million barrels per day. The ramp up in production comes as Saudi Arabia pumped oil out at a near record rate of 10.45 mb/d and as production in Nigeria picks back up, the IEA says. Additionally, OPEC output was helped by Gabon rejoining the group
China’s trade surplus narrowed. Data released by China’s General Administration of Customs showed exports fell 4.8% year-over-year in dollar terms while imports sagged 8.4%. The result was a trade surplus of $48.11 billion in June, which was a bit below the May reading of $49.98 billion. Economists had forecast China’s surplus would slide to $45.64 billion. A spokesman for the administration said China’s economy is facing “increased downward pressure” from the Brexit vote and amid expectations of further rate increases in the US.
Japan lowers its growth and inflation forecasts. The Japanese Cabinet Office lowered its 2016 growth forecast to 0.9% from 1.7% as a result of the delayed consumption tax hike, Bloomberg reports. Additionally, the government cut its inflation estimate to up 0.4% from up 1.2%. The Japanese yen is little changed at 104.75 per dollar.
Malaysia unexpectedly cut rates. Bank Negara Malaysia lowered its key interest rate 25 basis points to 3.00%. The central bank noted, “Global growth prospects have also become more susceptible to increased downside risks in light of possible repercussions from the EU referendum in the United Kingdom.” Additionally, the bank expects inflation to now come in between 2% and 3% in 2016 versus its previous estimate of 2.5% to 3.5%. The Malaysian ringgit ended stronger by 0.4% to 3.9655 per dollar after the decision.
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PC sales in the US are growing again. Both Gartner and IDC data show PC shipments in the US have returned to growth for the first time in over a year, Engadget reports. Gartner data, which includes Windows tablets, showed PC shipments grew 1.4% in the second quarter. Meanwhile, IDC data, which doesn’t include Windows tablets, showed growth of 4.9%. There was some bad news, however. Deliveries to the rest of the fell between 4.5% and 5.2%, according to Engadget, citing data from Gartner and IDC.
Airbus had a huge day on Tuesday. The aeroplane maker closed four deals, worth up to $23.5 billion at list prices, on day two of the 2016 Farnborough Air Show. AirAsia was the biggest buyer, spending $12.57 billion worth of list prices for 100 Airbus A321neo airliners. “The A321neo will help us to meet ongoing strong demand as well as further reduce our costs across the group, which will translate to lower air fares for our guests,” AirAsia CEO Tony Fernandes said in a statement.
Stock markets around the world continue to rally. Japan’s Nikkei (+0.8%) was the leader in Asia and Spain’s IBEX (+0.7%) paces the gains in Europe. S&P 500 futures are up 2.50 points at 2148.25.
Earnings reporting remains light. CSX and Yum Brands will report after markets close.
US economic data trickles out. Crude oil inventories will be released at 10:30 a.m. ET and the Fed’s Beige Book will cross the wires at 2 p.m. ET. The US 10-year yield is down three basis points at 1.48%.
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