Good morning,
Markets in the U.S. and Europe are in a wait-and-see mode — trading in a narrow range and without much conviction. The excitement from the Greek deal has run its course for now; the Europe STOXX 600 is off 0.2%. S&P 500 futures are mixed ahead of a slew of big earnings reports. Asian markets were higher with the Hang Seng Index up 0.6%. The Shangahi Composite gained 0.64% while the Shenzen index is now 20% higher from its July 8 low. Meanwhile, the Nikkei just a hair away from its 18-year high. The Japanese benchmark just notched its sixth straight gain this session, adding 0.9% to make it just 0.5% away from its December 1996 high. Gold meanwhile touched off its five-year low to trade at $1,104.
Here’s what else you should know:
Set your Apple Watches to 16:00 ET, if you have one. For once, China won’t be a drag on earnings, according to Estimize, which expects the second quarter to post $1.86/share on revenue of $49.48 billion; the Wall Street consensus: $1.79/share on $4 9.02 billion. Everyone agrees the iPhone 6 and iPhone 6 Plus will drive revenues. Growth in China should be 71% year-over-year. Estimize
Yahoo! Microsoft, Bank of NY Mellon, Chipotle, Verizon are also on board to report second quarter earnings on Tuesday. Estimize
Japan looking smart as consumers snap up Hermes products, shoving aside Hong Kong buyers. Sales in Japan jumped 27% making up for a slowdown among luxury buyers in Hong Kong. Burberry says it may close some shops in Hong Kong while the Swiss Watch Industry says sales in Hong Kong dropped 21% in June. Bloomberg
Toshiba execs resign amid accounting scandal. Taking responsibility for one of the largest accounting scandals Japan has ever faced, Toshiba president Hisao Tanaka, vice chairman Norio Sasaki, and adviser Atsutoshi Nishida all resigned from the company. Bloomberg
The FT takes on ticker “566” aka Hanergy Thin Film, the overnight meltdown phenom. Nobody else has covered Hanergy’s saga better than the FT, and this is their latest investigation into the toy-maker turned energy giant. Financial Times (paywall)
Happy managed-float-the-Yuan day, China. Today marks the 10th anniversary of the surprise unpegging of the Yuan from its fixed exchange rate, and man has it gone a long way since then. MarketWatch
“We’re so grateful they’re coming home with all their bits.” Mick Fanning has always been one of the funniest guys on the pro surfing tour, and thanks to his recent shark attack we get to find out where he got it – his mom. DailyMail
There’s always room for more: Ohio Gov. John Kasich becomes Repulican N0. 16 to join the race for the nomination to become President. He won’t be nearly as colorful as the Donald.
Photo: Niall Kennedy