• SXXP +80bps, inline with the move in the SXP Futures also +80bps, focused on US-China trade discussions and American lawmakers making progress on an economic aid package
• Asia relatively calm - not too many large movers. Shine taken off the rally in China who closed just +20 bps as Shadow PMI serv data decent miss in China 54.1 cons 58 (and prev 58.4).
• HK +60bps, outperformed as with semis rally on reports China is to offer industry tax incentives
• Eruope saw through slight wobble after Few PMI services disappointments but expectations were highg and the market saw through it.. EU printed 54.7 cons 55.1 and Germany and UK very slight misses too
• The dollar is weaker today.
• A DAX-heavy morning on the earnings front:
o COMMERZBANK +4% BEAT 2 net income €220M cons €95M; Revenue €2.27B cons €2.26B; EBIT €205M cons €151M
o DTE POST +3% Q2 BETTER - net €525m, revs €15.96bn, EBIT €912.m vs 7th July guide ~€890m ... +2%
o DIALOG SEMI +5% Sees 3Q revenue $340m to $380m, est $333.2m. 2Q revenue $302.3m, estimate $298.3m. 2Q adjusted operating profit $62.4m, -24% y/y. 2Q adjusted Ebitda $76.4m, -23% y/y 2Q adjusted gross margin 50.6%. Sees 3Q underlying gross margin to be broadly in line with Q2 2020.
o VONOVIA +3.5% 1H FFO €676.3m, net €1.62bn and reiterates FY targets
o Data today : 8:15am Spain market PMI, 8:45am Italy Markit PMI, 8:50am France market PMI, 8:55am Germany Markit PMI, 9:30am UK Markit PMI, 1:30pm US ADP data, 3pm US ISM
o ALLIANZ unchg after BEAT Q2 net income €1.53B cons €1.48B; Operating profit €2.57B cons €2.43B
o BMW -3% reported its first loss since 2009... And miss vs cons.
• Food & Bev -30bps which is still being weighed on by DGE disappointment yesterday... That stock is -3%..
• Airlines are +6%, fantastic call from Danny Kirsche..
• As commodity prices are up across the board... Oil climbed to a five-month high, topping $45 a barrel after US industry data showed a decline in the nation’s stockpiles.
• Gold continued its rally even after passing record $2,000
