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Global Markets Rise As Drop In Chinese Growth Spurs Hopes Of Stimulus
International
Asia
● Most Asian stock indexes rose as Chinese GDP growth from April to June met expectations, but the rate of growth for the world's second-biggest economy was the lowest since the January-to-April period in 2009.
● The Nikkei advanced 0.05 percent; Korea’s KOSPI jumped 1.54 percent; the Shanghai Composite rose 0.02 percent; the Hang Seng climbed 0.35 percent; and the S&P/ASX 200 increased 0.35 percent.
Europe
● European stock indexes rose as investors speculated that Chinese government officials would enact stimulus measures in light of the three-year low in its GDP growth rate. Watch for changes in the Vanguard MSCI Europe ETF (NYSEArca: VGK).
● Italian bond yields have fallen even given Moody’s unexpected rating cut. Yields on three-year notes have dropped to 4.65 percent from 5.3 percent in June before the downgrade. The 10-year bond yield is now 5.82 percent, down from about 6 percent a while ago.
Domestic
● U.S. stock futures pointed higher, as weak Chinese expansion data fueled speculation for Chinese stimulus measures.
Earnings
JP Morgan - 7:30 a.m. ET
● 2nd-Quarter Earnings
● Expected EPS - $0.78
● ETF Movements
iShares Dow Jones US Financial Svc (NYSEArca: IYG)
Market Vectors Bank and Brokerage ETF (NYSEArca: RKH)
Wells Fargo - 10 AM ET
● 2nd-Quarter Earnings
● Expected EPS = $0.82
● ETF Movements
iShares Dow Jones US Financial Svcs (NYSEArca: IYG)
Market Vectors Bank and Brokerage ETF (NYSEArca: RKH)
Commodities
All commodities news is as of 7:00 a.m. ET.
Gold and Silver Climbed
● Gold advanced 0.78 percent, or $12.25, to $1584.23. Expect increases in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
● Silver soared 1.12 percent, or $0.31, to $27.47. Expect the iShares Silver Trust (NYSEArca: SLV) to follow suit.
WTI and Brent Oil Surged
● The August contract for WTI crude oil gained 1.1 percent, or $0.93, to $87.01 per barrel.
● The August contract for Brent crude oil extended 1.2 percent, or $1.20, to $102.27 per barrel.
● Expect growth in both the United States Oil Fund (NYSEArca: USO) and in the United States Brent Oil Fund (NYSEArca: BNO).
Fund Flows
On Thursday, July 12, 2012, the top ETF in nominal inflows was the iShares Russell 2000 (NYSEArca: IWM), with creations of $964.6 million. The top ETF in nominal outflows was the PowerShares QQQ Trust (NasdaqGM: QQQ), with redemptions of $249.7 million.
ETF Launches
None as of yet today
ETF Filings
None as of yet today
Economic Calendar
Domestic
● Producer Price Index - 8:30 a.m. ET
● Consumer Sentiment - 9:55 a.m. ET
Europe
● Switzerland
Producer and Import Price Index - 3:15 a.m. ET
● Italy
CPI - 5:00 a.m. ET |
