MORNING BID AMERICAS-Big Tech weighs in, UK relieved

A look at the day ahead in U.S. and global markets from Mike Dolan

July is heating up and cooling down at the same time - and it's not just the exraordinary weather.

Red-hot, Big Tech mega caps that have driven Wall St stocks to their highest in more than year start to clock second-quarter updates later on Wednesday, while world markets were buoyed again as Britain's outlying inflation finally starts to cool.

Tesla and Netflix - both part of New York's 10-stock FANG+TM index of leading tech and digital giants that has almost doubled so far this year - report after the bell on Wednesday. IBM also releases earnings.

Forecast-beating banks leading this week's latest stock rally get an update today from Goldman Sachs. Investment bank rival Morgan Stanley surged 6% on Tuesday after it outpaced expectations as its wealth management trumped downbeat trading. Bank of America jumped over 4% on its beat.

With almost 10% of the S&P500 now reported, more than 80% have beat the Street so far. The S&P500 and Nasdaq powered ahead on Tuesday, notching their best levels since April last year and futures held those gains ahead of Tuesday's opening bell.

Markets have been electrified again over the past week amid hopes that U.S. disinflation is proceeding at a pace fast enough to end the Federal Reserve's interest rate rise campaign after one last hike next week. Bonds are buoyed, with 10-year yields edged down again on Wednesday to their lowest for the month.

That renewed ebullience has fanned out across developed markets, with MSCI's all-country index also hitting 15-month highs and on course Wednesday for its longest streak of consecutive daily gains in more than two years.

That mood was helped by news that Britain finally appeared to be joining the disinflation club in June, with its headline inflation rate falling back below 8% for the first time in more than year and core inflation ebbing below 7%.

After four straight monthly misses, the below-forecast outcome was some relief to UK markets - where government bond yields fell, FTSE stocks jumped and the pumped-up pound recoiled. Significantly it dragged money markets' assumption of peak Bank of England interest rates back below 6% for the first time in well over a month.

European government bond yields also ebbed amid indications from European Central Bank officials this week that its rate rise program may also be close to an end.

Sterling's retreat helped lift the dollar more generally , but China's yuan also subsided again amid growing worries about the stuttering domestic economy, re-kindled property sector worries and a stock market that's underperformed world indices by about 20% this year - and fell again on Wednesday.

The lack of any major stimulus plan from government, deepening gepolitucal concerns and increasingly wary foreign investors rankle. Foreign direct investment into China shrank by 2.7% in the first half compared to the same period last year, the commerce ministry said on Wednesday, adding foriegn trade faced an 'extremely severe' situation for the rest of the year.

On the U.S. data front, retail sales and industrial production numbers out on Tuesday showed the economy plodding along - good for the disinflation picture, but more worrying on underlying demand.

Rebounding U.S. housing markets get a test from June starts and permits updates later on Wednesday.

Events to watch for later on Wednesday: * U.S. corporate earnings: Tesla, Goldman Sachs, Netflix, IBM, Kinder Morgan, United Airlines, Halliburton, M&T Bank, Northern Trust, Zions Bancorp, US Bancorp, Citizens Financial, Nasdaq, Equifax, Discover Financial, Crown Castle, Steel Dynamics, Baker Hughes, Elevance Health * U.S. June housing starts and permits * U.S. Treasury auctions 20-year bonds

(By Mike Dolan, editing by XXXX mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)