China’s Shanghai Composite Index regained strength at the end of last week and closed the week almost flat. Carrying forward the strength, the Shanghai Composite Index started this week on a stronger note by closing higher on Monday. On July 24, the Shanghai Composite Index opened the day higher and rose to one-month high price levels.
The Shanghai Composite Index closed higher on Monday amid strength in financial stocks. Financials moved higher as the People’s Bank of China injected $74.36 billion through a medium-term lending facility into the banking system. The Shanghai Composite Index rose on Tuesday after China’s cabinet signaled a more vigorous fiscal policy to support economic growth and counter uncertainty about the economic outlook. There are expectations that China’s monetary policy will loosen more, which boosted China’s bond yields and equity market on Tuesday.
On July 24, the Shanghai Composite Index gained 1.62% and closed the day at 2,905.94. The SPDR S&P China (GXC) fell 0.37% on Monday.
Hong Kong’s Hang Seng Index started this week on a stable note by closing higher on Monday. Maintaining the strength, the Hang Seng Index opened higher on Tuesday and rose to two-week high price levels. On Tuesday, optimism about China’s monetary expansions boosted the Hang Seng Index. The potential tax cuts for Chinese businesses boost the growth and improved the Asian market sentiment.
On July 24, the Hang Seng Index gained 1.5% and closed the day at 28,681.00. The Shares MSCI Hong Kong (EWH) closed flat on Monday.
After gaining for two consecutive trading weeks, Japan’s Nikkei Index started this week on a weaker note by closing lower on Monday. The Nikkei Index declined on Monday due to the stronger yen. However, the Nikkei Index opened stronger on July 24 and closed the day higher. The rally in the yen lost steam on Tuesday and boosted exporters. The market was also supported by the improved sentiment in Asia on Tuesday.
The Nikkei Index gained 0.51% and closed the day at 22,510.50. The iShares MSCI Japan (EWJ) rose 0.5% on Monday.
Next, we’ll discuss how US markets performed on July 23.
The US Dollar Index opened Tuesday on a stable note. The US Dollar Index was trading with strength in the early hours.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.