Exports from South Korea advanced 29.6% yoy to a record high of USD 55.4 billion in July 2021, but below market forecasts of a 30.2% growth and after a 39.7% jump in June. This was the ninth straight month of increase in outbound shipments, amid strengthening overseas demand in the aftermath of the COVID- crisis. Sales of chips, the country's top export, surged 39.6%, while those of petrochemicals and petroleum jumped 60 % and 73%, respectively. Exports also grew for the bio-health sector (27.2%) and rechargeable batteries (30%). At the same time, sales of cars rose by 12.3 percent. Shipments to China soared 15.7%, while those to the US gained 32%. Sales also rose to Japan (28%). Meanwhile, sales to the EU and the ASEAN countries jumped 44.0% and 36.8%, respectively.

The official NBS Non-Manufacturing PMI for China dropped to a five-month low of 53.3 in July 2021 from 53.5 in the previous month, amid an outbreak of the Delta variant of COVID-19 in some parts of the country, particularly in the capital of China’s eastern Jiangsu province, Nanjing; and severe floods in central China. New orders shrank for the second consecutive month (49.7 vs 49.6 in June), export orders declined for the fourth month running (47.7 vs 45.4), and employment continued to fall(48.2 vs 48.0). Prices data showed input cost inflation was little changed from June's seven-month low figure (53.5 vs 53.4) while selling prices went up the least in three months (51.3 vs 51.4). Finally, confidence hit its lowest in six months (60.7 vs 60.8).

The official NBS Manufacturing PMI for China fell to 50.4 in July 2021 from 50.9 a month earlier and missing market expectations of 50.8. This was the weakest pace of increase in factory activity since a contraction in February 2020, amid the Delta variant of COVID-19 outbreak in the eastern city of Nanjing, higher material cost, and extreme weather. Output (51.0 vs 51.9), new orders (50.9 vs 51.5), and buying level (50.8 vs 51.7) all rose at softer paces; while export sales declined the most in three months (47.7 vs 48.1). Meantime, employment shrank for the fourth month in a row despite the rate of falls softening from the prior month (49.6 vs 49.2. On the price front, both input cost (62.9 vs 61.2) and selling prices (53.8 vs 51.4) went up faster. Looking ahead, sentiment weakened to a one-year low (57.8 vs 57.9).

Arabica coffee futures eased to $1.8 per pound from an almost 7-year high of $2.07 hit on July 26th as concerns eased over the impact of severe weather on Brazil’s three largest growing regions, Paraná, Sao Paulo and Minas Gerais. Still, prices are up 12% in July and more than 55% in the last 12 months after recent drought cut 2021 output and demand for at-home machines and instant brews have grown while cafes are welcoming back customers starved of out-of-home coffee culture. Global coffee consumption is expected to exceed production this year for the first time since 2017, according to the USDA.

US stocks ended lower on Friday amid concerns about the economic recovery in the face of the spreading delta variant and China’s crackdown on large technology companies. Adding to a gloomier outlook, Amazon plunged more than 7% after it reported its first quarterly revenue miss in three years and gave weaker guidance. On the data front, both personal income and spending for June topped forecasts, while core PCE inflation came below expectations. On the monetary policy side, the US central bank decided to keep its benchmark interest rate at a record-low level of near-zero and the pace of the quantitative easing program unchanged. Still, policymakers characterized the economic recovery as robust and flagged ongoing discussions around the eventual withdrawal of monetary policy support. The Dow and Nasdaq have added 1.2% and 1% respectively in July, while the S&P 500 rose more than 2% over the same period.

The Toronto Stock Exchange's S&P/TSX composite index finished Friday's session on a weak note, led by healthcare stocks. On the economic data front, the latest figures showed the Canadian economy likely expanded 0.7% mom in June, due to the easing of public health measures in many provinces. In May, however, the GDP contracted 0.3%. Meantime, the industrial product price index was flat, and the raw materials price index increased 3.9%. For the week and month, S&P/TSX added 0.3% and 0.5%, respectively.

Core PCE prices in the US which exclude food and energy increased 0.4% mom in June of 2021, easing from a 0.5% rise in May and below forecasts of 0.6%. The annual rate however, edged up to 3.5% from 3.4% but was below market forecasts of 3.7%. Fed officials have been reiterating such price pressures are transitory because of fiscal stimulus, supply constraints, and rising commodity prices. There is also a low base effect from last year weighing as the coronavirus pandemic dented economic activity and lowered prices.

Personal consumption in the US surged 1% mom in June of 2021, rebounding from a 0.1% drop in May and beating market forecasts of a 0.7% increase, as consumers shifted spending to service-sector industries, such as restaurants and travel. The rise in spending on pharmaceuticals, gasoline, food services, accommodations, and other energy goods more than offset a decline in purchases of motor vehicles and parts.

The Euro Area economy expanded by 2.0 percent on quarter in the three months to June 2021, rebounding from two consecutive periods of contraction and beating market expectations of 1.5 percent growth, a preliminary estimate showed. The bloc's economic recovery gained momentum on the back of the continued re-opening efforts, helped by the rapid pace of COVID-19 vaccination and ongoing government support. Among the bloc's biggest economies, Germany, France and Spain returned to growth, and Italy's expansion gathered pace.