Geopolitical tensions mount as grain deal goes under the Black Sea | MarketTalk: What’s up today? | Swissquote

Show notes

Soft Chinese figures hit energy, metals and European luxury stocks yesterday, while wheat futures jumped as Russia called off the grain deal in Black Sea.
US stocks, however, extended rally and the US 2-year yield consolidated around 4.70% as investors started betting on when the Fed would cut the rates in the coming months.
Today, the Bank of America, Morgan Stanley and Lockheed Martin will be releasing their quarterly earnings. While BoFA and Morgan Stanley’s investment branches may have taken a hit, investors will be looking at how well these banks benefited from rising rates. Lockheed Martin on the other hand will undoubtedly continue outperforming as war and geopolitical tensions only keep rising and increasing the defense budgets around the world.
On the macro calendar, the US retail sales will be in focus today, as the resilience of the US consumer spending is another headache in the Fed’s fight against inflation, and the data could not surprise to the downside. According to Bank of America’s card data, spending in June was down by 0.2% ‘but not out’ and the official numbers are expected to show a slow improvement. A better-than-expected read could fuel inflation expectations and slowdown the US dollar’s selloff but unless we see seriously strong data, any improvement will unlikely to turn the bearish winds around in the medium run.
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