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If
markets were looking for more news to support the recent
Fed-induced optimism, then earnings scorecards from Apple and
Amazon provided the boost.
The tech bellwethers pointed to resilient consumer demand and
forecast strong sales despite runaway inflation, spurring a rise
in their shares.
Still, consumers have been persnickety, as Walmart's results
showed. We will know more about how deep their pockets are and
where inflation pinched them on Friday when Colgate-Palmolive
and Procter & Gamble reveal results.
There's also a host of reports due from both sides of the
Atlantic, including the U.S. consumer spending and wages data,
and other consumer indicators from France and Germany.
The University of Michigan's final consumer sentiment index
reading for July is due, and likely stayed unchanged at 51.1.
While data on Friday made for grim reading, with the U.S.
economy contracting in the second quarter and consumer spending
growing at its slowest pace in two years, Treasury Secretary
Janet Yellen pointed to broad strength in the economy,
especially in jobs.
In Europe, the focus will be on the eurozone's second-quarter
GDP numbers and CPI for July. This comes after German inflation
edged up unexpectedly in July, driven by an energy supply
crisis.
For now, the backdrop of an upbeat corporate results points to a
stronger start for European stock futures, after Asian equity
markets posted gains. Banks, a proxy of economic growth, will
take the lead from Asia-focused Standard Chartered, which is set
to report a a drop in second-quarter profit but attention will
be on its outlook. BNP Paribas comes later.
The dollar is stuck near a six-week low versus the yen, dragged
lower by a sharp retreat in Treasury yields.
Key developments that should provide more direction to markets
on Thursday:
Economic data - Eurozone Q2 GDP, U.S. Q2 employment cost index,
personal income, June personal spending, France Q2 GDP and June
consumer spending, Germany Q2 GDP and July unemployment data, UK
Nationwide house price index, Spain flash July CPI & Q2 GDP
Major earnings: Exxon, Procter & Gamble, Chevron, AstraZeneca,
Colgate-Palmolive, BNP Paribas
Amazon sees resilient consumer demand as shares jump 13% -
Despite Xi's 'fire', call with Biden avoided Taiwan escalation -
(Reporting by Anshuman Daga; Editing by Vidya Ranganathan)
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