Prime Day, iPhone 12, J&J and banking income


© Reuters.

By Geoffrey Smith – Corporate ballyhoo is high on the agenda, with Amazon’s Prime Day (NASDAQ đŸ™‚ and the Apple iPhone launch (NASDAQ đŸ™‚ hitting the headlines. JPMorgan (NYSE đŸ™‚ and Citigroup (NYSE đŸ™‚ kicks off earnings season, with Johnson & Johnson having to suspend their Covid-19 trial overnight. There is grim economic data outside of Europe, and the International Energy Agency is forecasting an earlier peak in global oil demand. Here’s what you need to know about the financial markets on Tuesday, October 13.

1. Launch of Amazon Prime Day and Apple iPhone

Two major marketing events are set to make headlines, with Amazon’s annual Prime Day coinciding with Apple’s launch of its new 5G-enabled iPhone 12.

Apple’s event was clouded somewhat by reports suggesting that capacity limitations on U.S. networks mean U.S. buyers won’t be able to make the most of the new phone’s faster download speeds. However, given the inevitable rollout of 5G over the next year, this should only be a small problem.

Prime Day is arguably more important, given what it can say about the overall strength of U.S. consumer demand amid high unemployment and continued uncertainty over the economic outlook.

2. Trump resumes campaign; J&J Suspends Covid Drug Trial

President Donald Trump has returned to the electoral track, telling his supporters he feels “powerful” and saying he is now “immune” to the Covid-19 virus. Medical experts are questioning this latest claim, which comes at a time when the United States is recording its first confirmed cases of reinfection.

Trump’s doctor said the president tested negative for Covid-19 on two consecutive days.

Hopes of an early breakthrough in vaccine delivery to the general public took a hit overnight as Johnson & Johnson suspended Stage 3 trial of its investigational drug following illness unexplained in a study participant. J&J kicks off the third quarter earnings season later, with some of America’s biggest banks.

3. Mixed ready-to-open stocks; bank profits in the eyes

US equity markets are expected to open in a mixed fashion, with technology outperforming again, sentiment towards cyclical stocks affected by news of J&J’s lawsuit.

As of 6:15 a.m. ET, were down 121 points, or 0.4%, while they were down 0.1% and up 1.0%.

Attention will be focused on the third quarter earnings reports of and, where a sharp decline in the level of new loan loss provisions is expected, as well as a strong performance in equity trading. Bond trading, which saved the bottom line for many Wall Street in the second quarter, is unlikely to repeat the trick.

4. Data from Europe affected by virus

Europe’s economic recovery looks increasingly precarious, as a second wave of infections erodes sentiment and unemployment rises as governments cut wage subsidy programs.

The German inquiry fell to its lowest level since May, with new fears over a disruptive end to the Brexit transition period and concerns over a contested US election result adding to those over the virus.

Meanwhile, the UK fell the most in 11 years during the three months of August, with companies cutting jobs wholesale before the scheduled end of the government’s leave program.

U.S. data due for release later includes for September at 8:30 a.m. ET and, for those old-fashioned enough to care, for September at 2 p.m. ET.

5. IEA sees peak oil demand earlier

The International Energy Agency has said it now expects global demand for oil to peak by 2030 due to permanent changes in the economy from the pandemic. He had already expected a peak in the next decade.

The IEA’s new World Energy Outlook, released Tuesday, says the pandemic has also accelerated the decline in coal use around the world and will accelerate the adoption of renewable technologies. He expects renewables to meet 80% of global demand growth over the next decade.

The statement adds a longer-term perspective to OPEC’s monthly report, which will be released around noon in Vienna.

Futures nonetheless rebounded 1.7% to $ 40.24 per barrel, while futures rose 1.5% to $ 42.34 per barrel, supported by the bullish assumption of the IEA says the global economy will rebound vigorously next year as the coronavirus is brought under control.


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