Markets see a muted start to the quarter
Wall Street stocks ended higher on Monday to kick off a new month and a quarter, with the Nasdaq Composite seeing a new record close. The tech-heavy index increased 0.8%, the Dow Jones Industrial Average rose just 0.1%, and the S&P 500 went up 0.3%. In individual stocks, Tesla gained more than 6% in anticipation of quarterly delivery numbers due today. Volatility was relatively low during the session, with investors on the sidelines ahead of the July 4th holiday. Later in the week, market focus will shift towards a monthly jobs report from the US that could affect rate-cut expectations.
In Asia, equities were mixed and muted after gains on Wall Street. In part, a cautious tone was due to uncertainty in anticipation of a speech by Fed Chair Powell at a European Central Bank event later in the day. China’s Shanghai Composite indexes rose 0.08% to start July on slightly positive footing after nursing steep losses last month amid worries about a Chinese economic recovery. Hong Kong’s Hang Seng index rose 0.21%. In Sydney, ASX 200 fell 0.42% after the minutes of the Reserve Bank of Australia’s June meeting showed policymakers considered an interest rate hike.
European stocks opened lower on Tuesday after a positive start to the week. The regional Stoxx 600 was nearly 0.5% lower in early deals, with most sectors in the red. On the data front, the BRC said shop price inflation in the U.K. fell to 0.2% in June from 0.6% in May, the lowest level since October 2021. In Germany, business climate in the automotive industry deteriorated slightly in June, according to Ifo. Meanwhile, US stock index futures were little changed in early pre-market deals.
Elsewhere, the US dollar extended yesterday’s bounce on Tuesday, recovering from one-week lows seen below 105.50 at the start of the week. The greenback is now back around the 106.00 figure, with the 106.15 zone in the market focus. Should Powell express a more hawkish tone during the upcoming speech, the USD index may challenge the mentioned barrier that capped gains last week. Later in the week, the dollar may derive support from strong US jobs figures.
