Corporate Earnings

• Global markets remained steady on Tuesday following a previous equity rally and a decline in oil prices, with Wall Street futures showing slight gains. • Investors are shifting focus toward the U.S. corporate earnings season, which is now more than halfway complete. • Market participants are specifically awaiting the first earnings report from Elon Musk's SpaceX to gauge the company's financial performance.

• European equity markets, including the DAX, CAC, and FTSE100, traded higher on Thursday as strong corporate earnings helped offset investor uncertainty regarding U.S. interest rates. • France's INSEE reported a 0.2% expansion in gross domestic product for the second quarter, successfully reversing a 0.1% contraction seen in the first quarter. • Economic data further indicated an acceleration in French household spending during June, primarily driven by increased expenditures on energy and food.

• The FTSE 100 rose nearly 0.6% on Tuesday, extending a rally driven by positive market sentiment and strong corporate earnings. • The index's growth was supported by its heavy concentration in energy, mining, and financial sectors, as well as positive UK retail sales and PMI data. • This upward trend highlights the UK market's sensitivity to global crude oil prices, Middle East supply developments, and Bank of England interest rate policies.

• Goldman Sachs has increased its 12-month target for Japan's TOPIX index from 4,400 to 4,500, suggesting a potential upside of approximately 12%. • The firm's optimistic outlook is driven by expectations that a weak yen will significantly boost Japanese corporate earnings. • This move comes as the TOPIX remains only 2% below its all-time high set in June, outperforming other Asia-Pacific markets with a stable forward P/E ratio of 16x to 17x.

• European blue-chip companies are seeing an improved earnings outlook, with LSEG I/B/E/S data from Wednesday indicating the potential for the best growth in several years. • The positive trend is largely driven by soaring profits within the energy sector, which are offsetting losses in other industries. • Market reactions were mixed on Thursday, with TotalEnergies and Repsol shares climbing following strong Q2 results, while STMicroelectronics fell after missing estimates.

• U.S. stock indexes rose on Wednesday following the release of economic data indicating easing inflation and a positive start to the second-quarter earnings season. • BlackRock shares jumped 6.6% after the world's largest asset manager reported adjusted profit and revenue for April-June that exceeded market expectations. • Morgan Stanley shares increased by 0.4% after reporting a 27% rise in revenue and a 1.6-fold increase in net profit for the second quarter.

• Corporate India concluded FY26 with strong earnings growth, characterized by double-digit gains in Profit After Tax (PAT), sales, and EBITDA according to a report by Motilal Oswal. • The growth was primarily driven by the financials, metals, and oil marketing companies (OMCs) sectors, with mid-cap companies notably outperforming larger entities. • This trend is significant as it indicates broad-based resilience across key industrial sectors and suggests a positive trajectory for Nifty-50 earnings.