All major US indices were up overnight, boosted by stronger-than-expected earnings results from heavy-weight banks and AI stocks. The Dow rose 367 points (+1.06%). Dow at worst down 55 points. Dow at best up 401 points. S&P 500 up 0.71%. NASDAQ up 0.76%. USD slid to a 15-month low before rebounding as futures point to a 99.2% probability that the Fed will hike rates by 25bps at its next meeting. US Treasury yields mixed. The yield inversion between 2Y and 10Y notes widened to -97.5 basis points. Among stocks, Morgan Stanley up 6.45%, their biggest one-day jump since November 2020, shrugging off the 14% fall in profit as growth in its wealth management business offset lower trading revenue. Bank of America up 4.42%, beating profit expectations.  

• ASX to open higher. SPI Futures up 39 points (+0.54%)

European markets rose on Tuesday, with pan-European indices reversing earlier losses and ending around best levels. STOXX 50 +0.3%, FTSE +0.6%, CAC +0.4%, and DAX +0.3%. Asian markets mixed, Japan’s Nikkei rose 0.59% with advances in bank and chip-related stocks. HK and China down 2.05% and 0.37% as bearish sentiment towards China equities take hold amid disappointing GDP data.

• Russell 2000 +1.27%
• Microsoft + 3.98%, hitting an all-time of $366.78 during the session after announcing a new AI Subscription service for Microsoft 365.
• US Retail sales rose 0.2% MoM in June, falling from 0.5% in May, below forecasts of a 0.5% rise.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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