- The French economy grew 0.5% in Q2, exceeding market estimates of 0.2%
- Tech-heavy Nasdaq shows gains amid a more positive US earnings season
- Brent crude hovers around $107 with recent gains caused by ongoing supply concerns
- Standard Chartered sees profits soar 8%
Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown:
“The French economy has showed since of progress, growing 0.5% in the second quarter, reversing a previous contraction and beating market estimates of 0.2% growth. Growth has been supported by increased exports, however, the underlying picture is less positive. Household consumption fell in the quarter, likely a result of increased fiscal prudence, while government spending also came off the boil. The overall data set is of course a relief but this has done little to completely erode recessionary fears.
The tech-laden Nasdaq is up well over 3% in the last day, as the bruised index found some relief in a more positive earnings season. Many of the US mega-caps have reported reasonably sturdy results, despite the ongoing inflationary and supply chain problems. There’s still some way to go for the Nasdaq to undo the damage of the wider tech-sell off, but recent moves do suggest an air of relief and positivity for the future.
Brent crude is expected to end the week higher, currently hovering at the elevated level of around $107 a barrel. Oil prices have been jumping around all over the place as investors swing between fears of weak demand, constrained supply and in many cases, a large dose of both. News of the US entering a technical recession will do little to allay demand concerns and further ups and downs are all but guaranteed.
Asia-focussed UK-listed bank, has seen profits rise 8% in the first half of the year as both it’s benefitted from higher interest rates and market volatility. This is the latest in bank results to hit the market, with fellow international giant Barclays also seeing market movements boost its trading and investment bank arms. Standard feels confident enough to launch a $500m buyback, but did warn it sees some macro-challenges on the horizon.”
