Canada

Canada’s TSX (Toronto Stock Exchange) rose today, marking a positive performance despite a continued trend in the drop of oil prices. Data indicates that rising unemployment is starting to adversely impact the Canadian economy, with some economists suggesting that the housing market is at risk as a result.

USA

In the American market,  performance was mixed. The S&P 500 and the Nasdaq Composite experienced a notable decline. The tech-heavy Nasdaq was particularly impacted by a sharp drop in CrowdStrike’s stock, which dragged down other technology stocks. Investors are on edge, anticipating Microsoft’s earnings update after the bell, which is expected to provide insights into the tech sector’s health and future prospects.

UK

Europe

European shares saw gains, driven by strength in technology and oil stocks. Key players in the tech sector reported positive earnings, boosting investor confidence. Meanwhile, the oil sector benefitted from company-specific developments and strategic announcements that outweighed the broader decline in oil prices. The market sentiment in Europe remains cautiously optimistic, bolstered by robust corporate earnings and economic data.

China

Chinese markets traded lower by nearly half a percent, with local benchmarks reaching six-month lows due to ongoing concerns about a slowing economic recovery. Regional markets showed mixed reactions, taking middling cues from Wall Street, which ended flat on Monday as investors remained cautious ahead of central bank meetings.

Japan

Japan’s Nikkei rebounded to close higher after a period of volatility. The rebound was supported by a mix of positive corporate earnings reports and a stabilizing yen, which benefitted exporters. Investors in Japan are closely watching the upcoming policy meeting of the Bank of Japan, as any changes in monetary policy could have significant implications for the market.

Global Market Caution Ahead of Major Central Bank Meetings:

Globally, traders are exercising caution as they await the outcomes of key policy meetings at the Federal Reserve, the Bank of England, and the Bank of Japan. These meetings are highly anticipated as any changes in interest rates or monetary policy could have far-reaching effects on global financial markets. Investors are particularly focused on the Fed’s stance on inflation and interest rates, the Bank of England’s response to economic challenges, and the Bank of Japan’s potential policy shifts.

Currency Market Dynamics:

In the currency market, the yen weakened due to last-minute doubts about a potential rate hike by the Bank of Japan. Traders had initially expected a rate hike, but recent signals from the Bank have introduced uncertainty. Meanwhile, the U.S. dollar remained stable against major peers, as investors await guidance from the Federal Reserve on future monetary policy.

Commodities Market Movements:

In commodities, oil prices fell, driven by a softening demand outlook. Concerns about slower global economic growth and potential oversupply contributed to the decline in oil prices. On the other hand, gold prices advanced, benefitting from its status as a safe-haven asset amid market uncertainty. Investors are turning to gold as a hedge against inflation and potential volatility in equity markets.

Top Stock News:

CrowdStrike Holdings, Delta Air Lines Inc & Microsoft Corp:
Delta Air Lines has hired a law firm to seek compensation from Microsoft and CrowdStrike over a global cyber outage earlier this month that disrupted flights worldwide. The tech failure led to more than 2,200 flight cancellations on July 19 and has caused Delta to cancel over 6,000 flights, impacting hundreds of thousands of travelers. Analysts estimate the financial impact could be in the hundreds of millions of dollars. Shares of CrowdStrike fell in premarket trading.

Filo Corp & Lundin Mining Corp:
Global miner BHP Group and Canada-listed Lundin Mining will jointly take over developer Filo Corp for C$4.5 billion. They will form a 50/50 joint venture to hold both the Filo del Sol and Josemaria projects near the Argentine-Chile border. BHP and Lundin have offered C$33 per Filo share, reflecting a 12.2% premium to the Canadian copper miner’s last close on Monday. BHP is expected to pay a total of $2.1 billion in cash under the deal.

Meta Platforms:
Meta Platforms is expected to report a 20% rise in quarterly revenue, driven by strong ad sales linked to the Olympics and elections in several countries. Investors are keen to see if Meta’s spending on AI is beginning to yield returns.

PayPal Holdings Inc:
PayPal raised its full-year adjusted profit forecast for the second time, anticipating resilient consumer spending during the back-to-school and holiday shopping seasons. Cost-cutting measures improved margins, with total payment volumes increasing 11% to $416.81 billion in Q2 and net revenue rising 9% to $7.89 billion on an FX-neutral basis. However, PayPal expects third-quarter revenue growth to be in the mid-single digits, below Wall Street’s 7.5% expectations. Adjusted EPS rose to $1.19 for Q2, compared to 87 cents a year ago.

Pfizer:
U.S. drugmaker Pfizer raised its annual profit forecast after reporting better-than-expected sales for its COVID-19 vaccine and antiviral treatment.

Procter & Gamble:
Procter & Gamble missed Wall Street expectations for fourth-quarter sales due to reduced spending by price-conscious consumers in the U.S. and Europe. This led to slower growth for its beauty and home care products. P&G reported a 1% rise in overall volumes in Q4, with a 1% increase in average prices across its product categories. Fourth-quarter net sales slipped to $20.53 billion from $20.55 billion a year ago, below analysts’ expectations of $20.74 billion.

Sanofi-owned Genzyme:
Sanofi-owned biotech company Genzyme has sued rival Sarepta Therapeutics in Delaware federal court for allegedly infringing two patents related to Sarepta’s Duchenne muscular dystrophy (DMD) treatment, Elevidys.

Sika AG:
Swiss chemicals maker Sika AG reported a 9.2% jump in sales for the first half of the year and reiterated its forecast for local currency sales growth of 6-9% and an “over-proportional” increase in EBITDA for the year.

Standard Chartered:
Standard Chartered reported a 5% rise in pretax profit for the first six months of the year, slightly ahead of analysts’ estimates, and announced its largest share buyback to date.

Tesla:
Tesla is recalling over 1.8 million vehicles in the U.S. due to a software issue that fails to detect an unlatched hood, as reported by the National Highway Traffic Safety Administration.