Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

China Slows, Ukraine Grain Ship, Shale Earnings - What's Moving Markets

Economy Aug 01, 2022 06:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
ATVI
-0.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VNO
+0.96%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CF
-0.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
J
-0.28%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DVN
-1.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-1.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith

Investing.com -- China's economy slowed again in July, suggesting a rocky road to full recovery. PMIs from around the world point to a generalized slowdown except in India. Stocks are pausing for breath after last week's tech-driven rally, and grain and oil prices ease on brighter news out of Europe. Here's what you need to know in financial markets on Monday, August 1.

1. China slows; Beijing bristles as Pelosi prepares Taipei visit

China’s manufacturing sector slowed in July, amid signs of weak demand from core export markets and lingering disruptions from repeated outbreaks of COVID-19.

The Caixin Manufacturing PMI, which tracks activity among private-sector companies, fell to 50.4, only just above the 50 line that typically separates contraction from expansion, with firms reporting falling output and a sixth straight drop in employment.

The numbers suggest that China’s economy still faces huge challenges to meet an official growth target of around 5.5% this year. They were corroborated by HSBC adding another $150 million in credit loss provisions to its offshore Chinese loan book, a reflection of the grinding real estate crisis.

In other China-related news, U.S. House of Representatives Speaker Nancy Pelosi begins a tour of Asia today that is scheduled to include a visit to Taiwan, despite strongly-worded warnings from Beijing against it.

2. India bucks worldwide PMI decline trend; German retail sales slump

Purchasing managers indices around the world also pointed to a slowdown, broadly confirming the preliminary data released a week earlier, except in India, where activity picked up strongly.

The Institute for Supply Management’s PMI will be released at 10:00 AM ET and is likewise expected to show a modest slowdown from June, albeit staying clearly in growth territory.

That contrast with the Eurozone, where manufacturing is already in contraction owing to the acute energy crisis and accompanying inflation problem. Those factors also contributed largely to the biggest annual drop in German retail sales since the country started collecting pan-German data in 1994.

3. Stocks set to open mixed; Shale earnings in focus later

U.S. stock markets are set to open the week flat to lower, pausing for breath after a vigorous rally last week in response to the quarterly results from Big Tech names.

By 06:30 AM ET (1030 GMT), Dow Jones futures were down 8 points, essentially unchanged, while S&P 500 futures and Nasdaq 100 futures were both down 0.2%.

Most of the day’s earnings action comes after the close, with shale oil and gas producers Devon Energy (NYSE:DVN) and Diamondback (NASDAQ:FANG) in particularly sharp focus. Activision Blizzard (NASDAQ:ATVI), CF Industries (NYSE:CF), Avis (NASDAQ:CAR), and Vornado (NYSE:VNO) also report late, while Jacobs Engineering (NYSE:J) and Loews (NYSE:L) head a thinner slate ahead of the opening.

4. Grain prices ease as first ship leaves Ukraine under UN deal

The Sierra Leone-flagged ship Razoni became the first ship to leave a Ukrainian port carrying grain under a landmark UN-backed deal, a tentative sign of progress in relieving a growing food crisis in the emerging world. Russia has been blockading Ukrainian ports since its invasion in February

The BBC quoted Turkish and Ukrainian officials as saying the ship left the port of Odesa early on Monday morning local time. It will arrive in Turkish waters for inspection on Tuesday. It is due to take its cargo of 26,000 tons of corn to the Lebanese port of Tripoli.

Grain futures eased again on the news, with U.S. corn futures falling 1.5% and wheat futures falling 1.4%.

5. Oil falls on report that marine insurance sanctions will not be enforced

Crude oil prices also eased after a report suggested that the U.K. and Europe will not after all try to stop all seaborne Russian oil cargoes from getting insurance. The initiative had formed a major part of the EU’s sixth sanctions package, with the capability to disrupt shipments to third-party countries such as China and India.

However, the Financial Times reported that the U.K. has not drafted the legislation necessary for that, under pressure from the U.S. which wants to bring oil prices down in time for the midterm elections in November.

By 06:30 AM ET, U.S. crude futures were down 1.3% at $97.31 a barrel, while Brent was down 0.9% at $102.98 a barrel.

China Slows, Ukraine Grain Ship, Shale Earnings - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Robert smith
Robert smith Aug 01, 2022 11:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't let them fool you guys, this whole pullback happened exactly where it should have and it was nothing but taking profits in a way over bloated market. Recession? Seriously? ive BEEN through plenty of recessions and let me tell you they are NOT marked by help wanted signs everywhere and RISING wages. THINK
Marec Huber
Marec Huber Aug 01, 2022 11:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good for you !Let's hope those with long positions, or shorts, make above average profits from trading either side !
Marco cuevas
Marco cuevas Aug 01, 2022 9:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake financial journalism media conglomerates working hard churning out them sell the fear to keep the algos in the red today tesla and amazon look good today as they go opposite the nasal today expect the market to go green today despite what big money puts want you to go......
Brad Albright
Brad Albright Aug 01, 2022 9:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is true! I was at the meeting of the fake financial journalism media conglomerates at our secret lair in the Andes on Saturday, and Hugo Chavez said, How about if we churn out them sell the fear to keep the algos in the red today. We all drank some lizard blood and agreed. So we did. ALL TRUE !!!!
Marec Huber
Marec Huber Aug 01, 2022 9:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Agreed !Much of the media news continues to be fake news,apparently you became a willing participant to provide more fake news to others, for which many of us despise ?Respectfully here, love to know the benefits ,or the purpose, for drinking lizard blood ?Sounds more like evil found an opportunity to influence and deceive you, plus others ? While at the same time smacking your heads, without you knowing it, while laughing at you all.Hope that part isn't true !
nitin chugh
nitin chugh Aug 01, 2022 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
invest in India ....
Assel Kopp
Assel Kopp Aug 01, 2022 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
and china
Robert smith
Robert smith Aug 01, 2022 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Assel Kopp  I'm praying China's best stocks get delisted and crash. im going to buy on the hk market and wait it out.  It may be the chance of a lifetime.
Marec Huber
Marec Huber Aug 01, 2022 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You mean short, or sell the HKM.
ge Kret
ge Kret Aug 01, 2022 8:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buying TSLA before the split is a very investor savy move and some would actually say smart and profitable.
Cunwen Wijaya
Cunwen Wijaya Aug 01, 2022 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
china slowdown but australia still go up. australia data bad still go up . wow
Robert smith
Robert smith Aug 01, 2022 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
40 years of trading through recessions has taught me that when things are the WORST is the time to buy and the PROOF that youre right will be when you see stocks running up when the NEWS is actually still getting worse everyday and you're just SURE they are being stupid. What they are REALLY doing is buying based on the news we DON'T have while KEEPING the shorts shorting and using them for fuel. By the time the news CHANGES they will all be back near top. Mark my words is not LITTLE guys that ran msft and apple and the rest up this last month. And it WASNT a mistake.
Cunwen Wijaya
Cunwen Wijaya Aug 01, 2022 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
china slowdown but australia still go up. australia data bad still go up . wow
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email