Fixed Income Market Overview
U.S. Treasury yields fluctuated on Monday as investors considered the assassination attempt on former President Donald Trump and remarks from Federal Reserve Chair Jerome Powell. The 10- year Treasury yield rose by 4 basis points to 4.23%, while the 2-year yield dropped by 1 basis point to 4.45%. Powell indicated that the Fed might cut interest rates before inflation reaches its 2% target, reducing the likelihood of a hard economic landing. Recent inflation data showed the CPI fell 0.1% in June, against an expected rise, and wholesale prices increased more than anticipated. Despite geopolitical concerns, investors remained focused on inflation and Fed policy. Bryn Jones noted the minimal market reaction to the Trump incident, emphasizing inflation and unemployment concerns.
Powell indicates Fed won’t wait until inflation is down to 2% before cutting rates.
Google reportedly in advanced talks to acquire cyber startup Wiz for $23 billion, its largest-ever deal.
Government shareholding in Britain’s NatWest falls below 20%.
Macy’s shares plunge after ending deal talks with activist investors.
Indian equity issuances hit a record-high $28B in H1.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,211.72 | 210.82 | 0.52%↑ |
| NASDAQ | 20,386.88 | 55.39 | 0.27%↑ |
| S&P 500 | 5,631.22 | 15.87 | 0.28%↑ |
| NIKKEI | 41,275.08 | 84.4 | 0.20%↑ |
| HSI | 17,727.98 | -565.4 | -3.19%↓ |
| VIX | 13.12 | 0.66 | 5.03%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.23% | -0.05 |
| US 30-YR | 4.46% | -0.066 |
| US 5-YR | 4.13% | -0.033 |
| JPN 10-YR | 1.05% | 0 |
| UK 10-YR | 4.10% | 0.008 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 81.91 | -0.30 | -0.36%↓ |
| NAT GAS | 2.178 | -0.15 | -6.56% |
| GOLD | 2,428.9 | 8.20 | 0.34%↑ |
| SILVER | 30.93 | -0.23 | -0.73%↓ |
| COPPER | 4.52 | -0.07 | -1.45%↓ |
Equity Market Overview
Goldman Sachs
Goldman Sachs’ profits more than doubled in the second quarter, reaching $3bn, driven by a recovery in dealmaking and strong performance in bond and equities trading. The bank’s profits exceeded expectations, rising from $1.2bn a year earlier. CEO David Solomon noted a significant increase in the bank’s deal activity backlog, indicating an early recovery in capital markets and M&A. Goldman shares have risen 25% this year, outperforming major indices. Investment banking revenues increased by 21%, though advisory fees were lower than expected. Overall, revenue grew 17% to $12.7bn, with asset and wealth management revenue up 27%.
BlackRock, Inc.
BlackRock’s assets under management hit a record $10.65 trillion in Q2, driven by rising client asset values and strong inflows into its exchange-traded funds. Stock market gains and investor interest in AI-linked stocks boosted the S&P 500 index by 4%, contributing to BlackRock’s asset growth. The company anticipates closing two acquisitions in the second half of the year, enhancing its infrastructure and private market presence. BlackRock CEO Larry Fink highlighted significant growth opportunities in energy transition and AI data centers. The firm reported net inflows of $81.57 billion and saw an 8% revenue increase to $4.81 billion, with net income rising to $1.50 billion.
Burberry Group Plc
Burberry has replaced its CEO, Jonathan Akeroyd, with Joshua Schulman and suspended its dividend after warning that annual profits would fall short of expectations. Shares fell over 16% as the company struggled with a downturn in the luxury sector. Akeroyd aimed to revitalize Burberry with a focus on “Britishness” and more premium products, but this strategy faltered. Schulman will not overhaul the current strategy but will emphasize staple items like trenchcoats. Burberry reported a 21% drop in same-store sales in Q1 and forecasted an operating loss if weak trading continues. The company is also consulting on potential redundancies in corporate roles.
