Healthcare giants headline huge earnings week

Charts and Caffeine

Livewire Markets

Welcome to Charts and Caffeine - Livewire's pre-market open news and analysis wrap. We'll get you across the overnight session and share our best insights to get you better set for the investing day ahead.

MARKETS WRAP

  • S&P 500 - 4,280 (+1.73%)
  • NASDAQ - 13,047 (+2.09%)
  • CBOE VIX - 19.53
  • FTSE 100 - 7,501 (+0.47%)
  • STOXX 600 - 440.87 (+0.16%)
  • US 10YR - 2.893%
  • GOLD - US$1,819/oz
  • WTI CRUDE - US$91.88/bbl

EARNINGS WEEK AHEAD 


  • Today: Bendigo and Adelaide Bank (ASX: BEN), Beach Energy (ASX: BPT), JB Hi-Fi (ASX: JBH), James Hardie (ASX: JHX)
  • Tomorrow: BHP (ASX: BHP), Goodman Group (ASX: GMG), Seek (ASX: SEK), Seven West Media (ASX: SWM)
  • Wednesday: Brambles (ASX: BXB), CSL (ASX: CSL), Domain (ASX: DHG), Magellan (ASX: MFG)
  • Thursday: ASX (ASX: ASX), Iress (ASX: IRE), ProMedicus (ASX: PME), Origin Energy (ASX: ORG), Transurban (ASX: TCL)
  • Friday: Cochlear (ASX: COH), Healius (ASX: HLS), Kogan (ASX: KGN), Newcrest Mining (ASX: NCM)

THE CALENDAR

Source: Forex Factory

Central banks are back on the docket after a couple of weeks away. The Reserve Bank of New Zealand will be the main highlight on Wednesday afternoon. We'll also get central bank minutes from the Federal Reserve and the RBA during that time. 

Beyond that, the key risk events are the Australian jobs report on Thursday, retail sales data from across North America, and Canadian inflation for July. So there's something for just about everyone.

Speaking of the jobs report, the key thing the RBA needs to be looking for isn't the number of jobs that are being created but the state of wages growth. It was just a few months ago that the RBA wanted to see wages rising substantially before it would raise interest rates. Now, it might be getting what it was looking for originally:

It's all about the take-home pay - or lack thereof. 

THE STAT

Argentina hikes interest rate by 950 basis points to 69.5% as inflation hits 20-year high (Source: CNBC)

Inflation is running at a year-on-year rate of 71%. In the last month, prices have surged 7.1%. The last time the central bank raised rates in Argentina was two weeks ago. Holy Dooley.

THE CHART

Rapid increases in commodity prices have typically preceded US recessions during the inflation-targeting era. If you believe the technical definition of a recession, then this correlation has been proven again. If you don't, then you may not want to hear Goldman Sachs' latest call on where Brent crude oil prices will be at the end of the year. 

Today's report was written by Hans Lee.

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Charts and Caffeine
Markets Wrap
Livewire Markets

Charts and Caffeine is Livewire's daily pre-market wrap. We get you across the overnight markets and share the best in global finance so you can start your day on the front foot. Written by Hans Lee (Mondays - Thursdays) and Chris Conway (Fridays).

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