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

NameDatePeriodActualEstimateSurprise
Singapore Press Holdings Ltd12/07/2019Q3 190.020.037(45.90)
CapitaLand Commercial Trust17/07/2019Q2 19   
Keppel Corp Ltd18/07/2019Q2 19 0.113 
SATS Ltd19/07/2019Q1 20 0.058 
CapitaLand Mall Trust23/07/2019Q2 19 0.029 
CapitaLand Ltd23/07/2019Q2 19 0.05 
Hutchison Port Holdings Trust24/07/2019Q2 19 0.019 
Jardine Cycle & Carriage Ltd26/07/2019Q2 19 0.50 
Ascendas Real Estate Investmen29/07/2019Q1 20   
DBS Group Holdings Ltd29/07/2019Q2 19 0.58 
Singapore Exchange Ltd31/07/2019Y 19 0.354 
Singapore Airlines Ltd31/07/2019Q1 20 0.12 
Dairy Farm International Holdi01/08/2019S1 19   
Hongkong Land Holdings Ltd01/08/2019S1 19 0.22 
UOL Group Ltd02/08/2019Q2 19 0.127 
Jardine Matheson Holdings Ltd02/08/2019S1 19 2.58 
Jardine Strategic Holdings Ltd02/08/2019S1 19   
United Overseas Bank Ltd02/08/2019Q2 19 0.61 
Oversea-Chinese Banking Corp L02/08/2019Q2 19 0.283 
Genting Singapore Ltd02/08/2019Q2 19 0.02 
Yangzijiang Shipbuilding Holdi07/08/2019Q2 19 0.235 
City Developments Ltd08/08/2019Q2 19 0.16 
Singapore Technologies Enginee08/08/2019Q2 19 0.046 
Singapore Telecommunications L08/08/2019Q1 20 0.043 
Venture Corp Ltd08/08/2019Q2 19 0.33 
ComfortDelGro Corp Ltd13/08/2019Q2 19 0.04 
Wilmar International Ltd13/08/2019Q2 19 0 042 
Golden Agri-Resources Ltd14/08/2019Q2 19 0.00 
Thai Beverage PCL14/08/2019Q3 19 0.25 
Sembcorp Industries Ltd14/08/2019Q2 19 0.057 

Source: Bloomberg

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