US equity markets ended on Monday with another record session, albeit major indices struggled to stay above last Friday’s close.

The S&P 500 index moved up 0.02% to 2014.3 points, lifted by defensive utilities (+0.37%), consumer discretionary (+0.34%), information technology (+0.30%) and healthcare (+0.21%), while energy (-0.93%), financials (-0.53%) and industrials (-0.41%) were among the draggers. 

Currency markets have moved very little due to a lack of catalysts and a seemingly fully-anticipated July rate cut, which creates little incentive for trading. Markets also seem to be immune to China’s Q2 GDP reading, which fell to a nearly three-decade low of 6.2% as a result of economic transformation, weaker global demand and a deteriorating trade environment. This growth rate is well expected by market participants, who also anticipate more monetary and fiscal stimulus to be carried out by Beijing to boost growth in the months to come. 

Investors are holding their breath ahead of Q2 earnings season, which might show some weakness due to the global slowdown and trade tensions. The growth of earnings per share (EPS) of the S&P 500 index has already flattened in the first quarter of 2019 compared to the fourth quarter of 2018. The positive effect of tax cuts introduced in early 2018 is fading this year, which will further dampen the earnings performance on a year-on-year basis.

Major banks, including Citigroup, JP Morgan, Goldman Sachs and Wells Fargo, are due to release Q2 results tonight. Pharmaceutical giant Johnson & Johnson earnings is also due to report today.

Singapore Press Holding (SPH) is the first blue-chip firm to announce its latest quarter earnings in the local market and it disappointed investors with a whopping 44% slump in its net profits. The lower earnings is largely due to a challenging media business, higher operating expenses and higher financing costs.

As Singapore's economic growth rate slowed to 0.1% in the second quarter, according to recent flash estimates by MTI, many local companies may face headwinds from reduced business activities, rising financing and operating costs, plus a deteriorating external environment.

Singapore earnings calendar

Name Date Period Actual Estimate Surprise
Singapore Press Holdings Ltd 12/07/2019 Q3 19 0.02 0.037 (45.90)
CapitaLand Commercial Trust 17/07/2019 Q2 19      
Keppel Corp Ltd 18/07/2019 Q2 19   0.113  
SATS Ltd 19/07/2019 Q1 20   0.058  
CapitaLand Mall Trust 23/07/2019 Q2 19   0.029  
CapitaLand Ltd 23/07/2019 Q2 19   0.05  
Hutchison Port Holdings Trust 24/07/2019 Q2 19   0.019  
Jardine Cycle & Carriage Ltd 26/07/2019 Q2 19   0.50  
Ascendas Real Estate Investmen 29/07/2019 Q1 20      
DBS Group Holdings Ltd 29/07/2019 Q2 19   0.58  
Singapore Exchange Ltd 31/07/2019 Y 19   0.354  
Singapore Airlines Ltd 31/07/2019 Q1 20   0.12  
Dairy Farm International Holdi 01/08/2019 S1 19      
Hongkong Land Holdings Ltd 01/08/2019 S1 19   0.22  
UOL Group Ltd 02/08/2019 Q2 19   0.127  
Jardine Matheson Holdings Ltd 02/08/2019 S1 19   2.58  
Jardine Strategic Holdings Ltd 02/08/2019 S1 19      
United Overseas Bank Ltd 02/08/2019 Q2 19   0.61  
Oversea-Chinese Banking Corp L 02/08/2019 Q2 19   0.283  
Genting Singapore Ltd 02/08/2019 Q2 19   0.02  
Yangzijiang Shipbuilding Holdi 07/08/2019 Q2 19   0.235  
City Developments Ltd 08/08/2019 Q2 19   0.16  
Singapore Technologies Enginee 08/08/2019 Q2 19   0.046  
Singapore Telecommunications L 08/08/2019 Q1 20   0.043  
Venture Corp Ltd 08/08/2019 Q2 19   0.33  
ComfortDelGro Corp Ltd 13/08/2019 Q2 19   0.04  
Wilmar International Ltd 13/08/2019 Q2 19   0.042  
Golden Agri-Resources Ltd 14/08/2019 Q2 19   0.00  
Thai Beverage PCL 14/08/2019 Q3 19   0.25  
Sembcorp Industries Ltd 14/08/2019 Q2 19   0.057  

Source: Bloomberg

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