MONEY LIVE | Glencore reports mixed production performance -
ArcelorMittal South Africa, the country’s primary steelmaker, reported a 22% rise in headline earnings to R3 billion for the six months ended in June.
It was the second straight 75 basis point increase, and the fourth rate hike this year, as US central bankers move aggressively to cool the strongest surge in inflation in more than four decades, without derailing the world's largest economy.27 July 12:42Chemicals group AECI has declared a gross interim cash dividend of 194 cents per share, following improved market conditions and recovery from the impact of Covid-19 .
AECI's business includes the production chemicals used in mining and water treatment in Africa, Europe, Southeast Asia North America, South America and Australia. De Beers’ sixth rough diamond sales cycle of 2022, amounted to $630 million , up from $514 million in the comparative cycle in 2021. That was backed up by a profit warning by retail titan Walman and a closely watched consumer confidence gauge sinking for the third month in a row.
"The Fed hasn't even gotten to neutral yet," Jason England, of Janus Henderson Investors, told Bloomberg Television. "Markets are pricing at a slower pace of tightening before the Fed pivots to an easing stance in 2023," said SPI Asset Management's Stephen Innes. Wall Street stocks fell early Tuesday after an earnings warning from Walmart exacerbated recession worries on the eve of a key Federal Reserve decision. The world's biggest retailer trimmed its profit forecast to reflect increased consumer spending for food, gasoline and other staples that is depressing demand for goods with higher profit margins.Shares of Walmart, a Dow component, plunged 8.5 percent in early trading, overshadowing a heavy day of other earnings.
The move from a secondary listing would come as several Chinese firms listed in the United States grow increasingly worried about a regulatory crackdown by authorities as part of a stand-off in the tech sector between Washington and Beijing. "We're probably going to be seeing a lot of choppiness and potentially some further declines in the market before the year end."
"Uncertainty is high as to the Fed's willingness to keep tightening if the economy slows significantly, with many forecasts projecting that the Fed will reverse and start cutting rates by the summer of 2023 as the economy slows and inflation wanes," he said in a note.The dollar weakened against a basket of major currencies on Monday, as investors weighed the implications of a rate hike by the US Federal Reserve in an economy that may be on the cusp of a recession.
Later in the week, investors will also eye the advance reading for second-quarter gross domestic product and personal consumption expenditures, the Fed's preferred inflation measure. Excluding the effect of 36 looted stores, which were hit during the unrest in July last year, revenue was down 7%. While the US central bank is widely expected to hike borrowing costs by 75 basis points, traders will be poring over policymakers' views on the outlook for the world's biggest economy as they try to rein in inflation while nurturing growth.
Investors are also awaiting the release of earnings from business titans Apple, Amazon and Google parent Alphabet. "We still see further downside for risky assets as recession fears accumulate and central banks remain committed to fighting inflation at the expense of growth," said Standard Chartered strategist Eric Robertsen.
"While prices have been volatile, I expect renewed downward pressure on crude," she said, adding that the Fed decision"will likely serve as a fresh reminder of the economic headwinds ahead".Snap shares sank more than 30 percent early Friday following disappointing results as US stocks were mixed in the final session of a positive trading week.About 30 minutes into trading, Snapchat's parent company was down 35.
Twitter and its peers, including Snap and Alphabet , saw an uptick in revenue last year as brands spent heavily on advertising online, eyeing a recovery from the pandemic. The offer was to be effected through a court-sanctioned scheme of arrangement which has now been achieved. The euro gave back some of the gains enjoyed after the European Central Bank ramped up borrowing costs more than forecast, with energy concerns and Italian political turmoil fuelling worries of a recession in the currency union.
The figures also suggested, however, that recessionary threats were rising and showed that the Fed has a tough task of doing enough to bring inflation down from four-decade highs while also nurturing fragile growth. Still, Asian markets were on course to end the week on a positive note.Tokyo, Hong Kong, Shanghai, Sydney, Taipei, Singapore, Manila, Jakarta and Wellington all posted big gains.
However, the single currency -- which has recovered after hitting dollar parity last week -- will face further pressure with US borrowing costs likely to jump again after the Fed's meeting next week. Future rate hikes"will be appropriate", the ECB said, while the size of the moves would be"data-dependent".Kumba Iron Ore, a subsidiary of Anglo American, earnings have plunged on the back of lower commodity prices in the first half of the year.
Kumba remains focused on delivering its full-year production and sale guidance of 38 to 40 wet metric tonnes,"despite operational and mining cost inflation headwinds in the first half". The Cyberspace Administration of China started its inquiry shortly after the company listed on June 30, 2021. And while corporate earnings have provided some much-needed relief so far, analysts remain cautious about the near-term outlook.
Europe is also awaiting the return of Russian gas supplies after 10 days of maintenance, with many fearing Moscow will keep the taps fully or partially shut -- hammering the economy -- as retaliation for sanctions imposed over its Ukraine invasion.
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