Fixed Income Market Overview
On Tuesday, U.S. Treasury yields were mostly unchanged as investors awaited new inflation data due on Friday. The 10-year Treasury yield was slightly lower at 4.24%, while the 2-year Treasury yield inched up to 4.742%. Investors are looking for clues about potential Federal Reserve interest rate cuts, with a 67.7% chance of a September cut being priced in. Key economic data, including durable goods orders and the Fed’s favored inflation measure (the personal consumption expenditures price index for May), are expected this week. Federal Reserve Governor Michelle Bowman stated that it’s not yet appropriate to lower rates and emphasized that rates could be raised if inflation persists. Similarly, San Francisco Fed President Mary Daly highlighted ongoing efforts to combat inflation, noting progress but indicating more work is needed.





Major Indicies
Symbol | Price | Change | %Change |
---|---|---|---|
DJIA | 38,747.42 | -299.05 | -0.76%↓ |
NASDAQ | 19,701.13 | 226.51 | 1.16%↑ |
S&P 500 | 5,469.30 | 21.43 | 0.39%↑ |
NIKKEI | 39,173.15 | 368.50 | 0.95%↑ |
HSI | 18,072.90 | 45.19 | 0.25%↑ |
VIX | 12.84 | -0.49 | -3.68%↓ |
Bonds
Name | Yeild | CHG |
---|---|---|
US 10-YR | 4.25% | 0.02 |
US 30-YR | 4.38% | 0.02 |
US 5-YR | 4.28% | 0.02 |
JPN 10-YR | 1.00% | 0.01 |
UK 10-YR | 4.08% | 0.00 |
Futures & Commodities
Name | Last | Change | %Change |
---|---|---|---|
WTI CRUDE | 80.83 | -0.80 | -0.98%↓ |
NAT GAS | 2.756 | -0.055 | -1.96%↓ |
GOLD | 2,330.80 | -13.60 | -0.58%↓ |
SILVER | 28.87 | -0.66 | -2.23%↓ |
COPPER | 4.371 | -0.066 | -1.49%↓ |
Equity Market Overview
Airbus Group
Shares of Airbus dropped by 9% on Tuesday following the announcement of revised lower targets for 2024, affecting aircraft deliveries and earnings. The company now expects adjusted earnings before interest and taxes to be around €5.5 billion, down from the previous estimate of €6.5-€7 billion. Airbus also reduced its aircraft delivery forecast to approximately 770 units, down from nearly 800, and delayed the production ramp-up of its A320 aircraft. These adjustments are attributed to ongoing supply chain issues in engines, aerostructures, and cabin equipment, as well as additional costs in its space systems division. The company is recording charges of about €900 million due to commercial and technical challenges. Airbus’ half-year results are scheduled for release on July 30.
Novo Nordisk
Novo Nordisk’s Wegovy weight loss treatment has been approved for long-term weight management in China, the world’s secondlargest economy. The drug, available to patients with a BMI of 30kg/m2 and at least one weight-related comorbidity, will initially target those paying out-of-pocket. This approval precedes the expiration of the drug’s active ingredient patent in China in 2026 amid rising competition from local manufacturers. Over half of China’s population is overweight or obese, highlighting significant market potential. Novo Nordisk shares rose 1.8% following the news, as the company also announced a $4.1 billion investment to expand U.S. manufacturing to meet growing demand.
FedEx
FedEx shares surged over 15% after reporting better-than-expected earnings and revenue for its fiscal fourth quarter. The company posted adjusted earnings per share of $5.41 and revenue of $22.1 billion, exceeding analysts’ expectations. Despite a slight decrease in annual revenue and net income, FedEx reduced capital spending by 16% and is committed to cutting $4 billion in costs by the end of fiscal 2025. Key to this strategy is the DRIVE transformation program, consolidating its delivery services into a unified entity by June 2024. The company anticipates modest revenue growth driven by e-commerce and aims to improve its Express segment’s performance.