Flat session expected in Asian markets; Australian consumer sentiment numbers out today

<p>Asian markets are set for a flat session after markets seem to have consolidated recent losses overnight. European banks saw another volatile session with banks […]</p>

Asian markets are set for a flat session after markets seem to have consolidated recent losses overnight. European banks saw another volatile session with banks swinging between large gains and losses.

Societe Generale SA, which had plunged 8.1%, rallied 15% and BNP Paribas SA added 7.2% following a 12% retreat after the French banks said they are able to finance their operations. Such volatility creates huge trading opportunities.

The most interesting news to come out of the U.S. trading session was Dell’s $5bn after-hours buyback announcement. The deal is worth up to 19% of the company’s current market value, a sign that value is starting to emerge in listed industrial businesses. In its latest quarterly results, Dell profit increased 63% as corporate demand lifted the bottom line, but it lowered its full-year revenue outlook because of slowing sales to consumers.

Other cyclical with balance sheet capacity will be closely eyed, not just in the U.S. but in other development markets like Australia.

In Australia, there is more speculation about the method and timing of Telstra’s capital management, with a share buyback now looking more likely. At current prices, investors are starting to re-evaluate their numbers.

Foster’s beer market share price domestically continues to decline, now down 44.8% in the first three weeks of August which is down 1.9% on the same period last year.

Consumer sentiment reading will be out today, and many market observers are expecting a poor number. It will be interesting to see what the final print actually is.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.