Profits are more important than geopolitics. Asian markets put aside the tremors and tensions related to Ukraine and Gaza, and changed direction after a growing number of US corporations reported second-quarter profits, which rose more than expected (it's 77% of 82 S&P 500 companies to report earnings to date).
The MSCI Asia Pacific ex-Japan regional index rose 0,3% two hours after the close of the Shanghai stock exchange (Tokyo is closed for holidays). The yen strengthened to 101,2 and the euro is stable at 1,354. Gold maintains Friday's gains, after the worsening of international tensions, and stands at 1313 $/ounce. Even crude oil maintains the levels of last weekend and registers 103,0 $/b (WTI – Brent shares 107,3, with a differential that drops further, to just over 4 dollars). Equity futures on London and New York are broadly stable.
