Aug 10 - A look at the day ahead from Danilo Masoni.
China's central bank has set the record straight by ruling
out "flood-like" stimulus. That dented hopes for more aggressive
policy easing just as Wall Street banks cut their growth
forecasts on the world's No. 2 economy.
That stance and rising COVID-19 cases curbed risk appetite
in Asia, and the cautious mood looks set to spill over to Europe
and Wall Street with stock futures pointing to a directionless
start, while the stellar Q2 season winds down.
Gold bounced back after crashing on Monday to four-month
lows while dollar remains buoyant on bets the Fed could soon
start tapering its massive bond purchases.
More insight may come later today from regional Fed
presidents Mester and Evans. Their views will be keenly
monitored after the Atlanta Fed's Bostic said he is eyeing Q4
for the start of a taper but is open to an even earlier move.
Treasury yields rose further above 1.3%.
However, as America prepares for less central bank support,
more fiscal stimulus is making its way through Congress. The
Senate will vote today on a $1 trillion bipartisan
infrastructure bill before starting debate on a more
far-reaching $3.5 trillion bill.
In corporate news, heavily indebted Chinese property
developer Evergrande rallied over 7% on reports it could sell
its EV and property management business. Eyes also on crypto
exchange Coinbase which posts results, one day after Bitcoin
climbed back above $46,000 for the first time since May.
In European earnings, duty free retailer Dufry hiked on its
2021 savings guidance on better-than-expected cash consumption.
Key developments that should provide more direction to
markets on Tuesday:
* Japan's SoftBank reports 39% fall in Q1 net profit
* British consumer spending rises in July,
* Munich Re says to meet 2021 profit goal as COVID-related
* German ZEW
* Fed speakers expected: Chicago Fed's Evans and Cleveland
* Auctions: U.S. 12-month t-bills, 3-year Treasury note
* U.S. earnings: Coinbase
* European earnings: Holiday Inn owner IHG Plc swung to an
profit but scrapped its interim dividend.
(Reporting by Danilo Masoni; editing by Sujata Rao)