[True Zoom Finance] July 24 Market Daily: Harris' approval rating is almost the same as Trump's; Tesla's performance falls short of expectations

"The Democratic Party's last-minute candidate change has shown significant effect. The latest national poll shows Harris's approval rating at 45%, only two percentage points behind Trump's 47%. Senate Majority Leader Schumer and House Democratic Leader Jeffries have endorsed Harris for president."

Overnight Highlights

l U.S. stock indices closed slightly lower on Tuesday as investors shifted their focus to the latest earnings reports from Alphabet and Tesla. U.S. Treasury yields fell following weak housing data and strong demand for the two-year Treasury auction. The yen rose against the dollar for the second consecutive trading day, supported by comments from a senior Japanese political official about monetary policy normalization, fueling expectations that the Bank of Japan will continue to raise interest rates to support the yen. Gold prices rose, ending a four-day losing streak.

International News

l The Democratic Party's last-minute candidate change has shown significant effect. The latest national poll shows Harris's approval rating at 45%, only two percentage points behind Trump's 47%. Senate Majority Leader Schumer and House Democratic Leader Jeffries have endorsed Harris for president.

l ABC reports that Pennsylvania Governor Josh Shapiro and Arizona Senator Mark Kelly are Harris's top choices for running mates.

l Bloomberg: The European Central Bank is reportedly considering setting new provisioning requirements for bank leverage loans at €7 billion, only half of the initial estimate.

l Eurozone consumer confidence improved for the sixth consecutive month in July, approaching the long-term average and reaching the highest level since the outbreak of the Russia-Ukraine war.

l U.S. existing home sales fell for the fourth consecutive month in June, with the median home price hitting a record high. Despite increased supply in recent months, prices continue to rise, though inventory remains at historically low levels.

l Trump denied his June statement, claiming he had not considered appointing JPMorgan Chase CEO Jamie Dimon as U.S. Treasury Secretary.

l Bank of America clients reduced their U.S. stock holdings by $7 billion last week, the largest outflow since 2020.

l $Tesla(TSLA.US) Tesla (TSLA.US) plunged about 7% in after-hours trading as its Q2 profit missed expectations, and its 2024 sales growth rate is expected to decline significantly. Tesla plans to produce low-cost vehicles in the first half of next year, with the Robotaxi launch event postponed by two months to October 10.

l Boosted by cloud computing and search advertising, Alphabet (GOOGL.US), Google's parent company, reported Q2 revenue that exceeded analyst expectations.

l $Meta Platforms(META.US) Meta (META.US) launched its new large language model, Llama 3.1, with CEO Mark Zuckerberg stating that the U.S. cannot maintain a years-long lead over China in AI indefinitely.

l Bloomberg: Apple (AAPL.US) may launch a foldable iPhone as early as 2026, having recently contacted Asian suppliers about the project.

Greater China News

l China's National Development and Reform Commission stated that to further expand opening-up and facilitate cross-border investment and financing, it will support high-quality companies in borrowing medium- and long-term foreign debt, excluding real estate firms, which will continue to be managed under existing regulations.

l China released an energy-saving and carbon reduction plan for the electrolytic aluminum industry, expanding the use of non-fossil energy sources like wind and solar power.

l CCTV: Xi Jinping stated that China is willing to continue promoting mutually beneficial cooperation with Russia in the energy sector. TASS: Russian Deputy Prime Minister Novak said there are no payment issues in oil supplies to China.

l Ukrainian Foreign Minister Kuleba arrived in China on Tuesday for a three-day visit, hoping to advance diplomatic efforts to end the Russia-Ukraine war. He will meet with Chinese Foreign Minister Wang Yi on Wednesday.

l Hong Kong's luxury property market has seen a rebound in transactions, with a luxury home on The Peak selling for HK$717 million, ranking among the year's largest deals.

l Bloomberg: A key creditor group of Sino-Ocean Group (3377.HK) has invited bondholders to a conference call on Wednesday to discuss alternative debt restructuring plans.

l Nikkei reports that Lenovo Group (0992.HK) plans to equip all new PCs with AI capabilities by 2027.

l China's Securities Regulatory Commission issued a filing notice for Midea Group's Hong Kong IPO, with the company planning to issue up to 650 million shares.

Commodities & Forex Markets

l The U.S. dollar index rose to a near two-week high, with all G-10 currencies except the yen falling against the dollar as investors trimmed short positions ahead of the Bank of Japan's rate meeting.

l Oil prices recorded their longest losing streak since early June, pressured by algorithmic trading and low summer liquidity.

Earnings & Economic Data Focus

l U.S. EIA Crude Oil Inventories (week ending July 19) (previous: -487, forecast: -248.4)

l Canada Bank Rate Decision (July 24) (previous: 4.75%, forecast: 4.50%)

Source: Goldhorse Capital Extramile

Author: Terry Chow