Economic Indicators & Central Banks:
- Markets paused after recent volatility and a tech selloff driven by high valuations and sector rotation.
- US election developments continue to dominate, with Kamala Harris securing enough pledged delegates for the Democratic presidential nomination, providing some political clarity.
- Asian stocks climbed, driven by gains in chipmakers following a Wall Street rebound ahead of major tech earnings reports.
- Treasury yields fell ahead of economic data releases and the Federal Reserve’s preferred inflation measure. Throughout July, speculation about a September rate cut boosted shorter-term bonds, narrowing their yield gap with longer-term securities.
Asian & European Open:
- US equity futures dipped, and Euro Stoxx 50 contracts rose in anticipation of earnings from Tesla Inc. and Alphabet Inc. later today.
- Nasdaq and S&P500 were both up more than 1%, reversing some of last week’s painful decline.
- The “Magnificent Seven” stocks rose over 2% on Monday, led by Tesla and Nvidia Corp.
- Toyota Motor Corp. plans to repurchase shares from major Japanese banks and insurers as part of a ¥1 trillion buyback plan.
Financial Markets Performance:
- The USDIndex remains in a ranging market, between 103.90-104.15.
- The Yen appreciated against the US Dollar, as traders adjusted their carry positions during the summer holiday season, with USDJPY breaching 156.20. Some Bank of Japan officials are open to raising rates at the July meeting, though weak consumer spending complicates the decision.
- Oil prices remained steady near a 6-week low as traders awaited new data on market balances and US stockpile forecasts.
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Andria Pichidi
Market Analyst
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