Market Overview

We start the day with further deterioration in the Middle East situation, following another series of U.S. strikes on Iranian coastal targets. This has led to oil rising for a third day in a row, with Brent at $85, already causing significant disruptions and drops in the petroleum supply chain, with China’s oil refinery output dropping to 2020 levels. Yesterday’s CPI report is something of a silver lining, as below-expectations results dampen concerns about a July interest rate hike by the Fed. But the increasing oil prices and the Fed’s hawkish tone could mean that the market might be getting ahead of itself in pricing in a dovish path.

East Asia

We’ve seen a rise in East Asian shares following yesterday’s CPI results and the subsequent trimming of bets on Federal Reserve interest-rate hikes. The Korea Composite Stock Price Index (KOSPI) is back as the top stock benchmark, with Tech and A.I. as the best performers in general. In local terms, Asia trading higher could lead to a firmer opening market, as traders and investors turn their attention to upcoming offshore earnings.

China

China’s economic data from earlier today was a mixed bag. The GDP failed to reach the official target, while retail sales and industrial production surpassed their respective goals. This is likely to prompt a short-term stimulus and other support policies from Beijing.

Local Stocks

Shoprite (SHP)

Shoprite might be interesting to keep an eye on in the long term, as the company’s media and marketing business could lead the grocery giant to a significant rise in revenue this year.

Earnings & Economic Data

Pre-Market Earnings

Morgan Stanley (MS)

Morgan Stanley is a multinational investment bank, based in the U.S. and with historic ties to J.P.Morgan (JPM).

BlackRock (BLK)

BlackRock is the world’s largest asset management and investment company, managing trillions in assets.

After-Market Earnings

Karooooo (KRO)

Karooooo is a dual-listed South African software company, with the ticker KARO on Nasdaq. It’s known for its tracking software, used in the transportation sector.

United Airlines (UAL)

United is a U.S. airliner with domestic and international flights. Its performance today could also be used to gauge the state of the consumer market.

Economic Data

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