“A way off” and that’s good for Reuters

A look back at Sujata Rao the day before.

We now know that the Fed is still following a “path” to tighten monetary policy. Data for the Chinese economy grew by 7.9% in the second quarter – less than half the rate of Q1 – confirms that the PBOC has the opinion of Fed Chairman Jerome Powell.

You might not be struck by China’s data: average growth exceeded Q1 in June while retail sales and industrial production exceeded expectations. But it shows that the authorities, who introduced a trillion yuan into the financial system last week, will ensure that conditions remain calm.

But the joy of the markets when Powell told Congress that he did not see the need to shift to tighter post-pandemic monetary policies did not last long.

World stocks are off the latest record, probably indicating that COVID-19 cases are being scrapped across Asia and the post-pandemic rebound in the company’s profits is peaking.

Asian stocks merged, rising 1% in Shanghai, but U.S. futures are mostly smaller, except for the heavy tech Nasdaq. European markets are also weaker and 10-year Treasury yields have fallen to 1.33%, almost 10 basis points from Wednesday’s high.

The good news for the business world – the four largest banks in the US, Wells Fargo (NYSE :), Bank of America (NYSE :), Citigroup (NYSE 🙂 and JPMorgan (NYSE 🙂 have combined $ 33 billion in profits. Asset manager BlackRock (NYSE 🙂 has exceeded estimates, with a record $ 9.5 trillion in assets.

Filters in Europe are also good, with Sweden’s SEB, carmaker Daimler (OTC 🙂 and food delivery company Just Eat reaping the benefits. And earlier in Asia, Taiwanese chip maker TSMC saw an 11% increase in Q2 earnings.

Graph: BANK RESULTS – https://graphics.reuters.com/USA-RESULTS/010010H74CN/BANKEARNS.jpg

Key developments that should provide more direction for the markets on Thursday:

– South Korea had rates, but the pandemic era was at a record high as interest rates were coming to an end

-UK added 356,000 jobs in June

-BeB Board Member Frank Elderson speaks

-Philly Fed Index

-Speaks by Michael Saunders, who sets interest rates for the Bank of England

Events of Faith: Powell’s Testimony Continues, Chicago Evidence President Charles Evans Speaks

US earnings: BNY Mellon (NYSE :), Charles Schwab (NYSE :), US Bancorp (NYSE :), Morgan Stanley (NYSE :), Alcoa (NYSE 🙂