
U.S. stock futures edged higher in early trading on Monday as investors are monitoring trade developments and anticipated tech earnings. Dow futures rose 0.1%, S&P 500 futures added 0.14%, and Nasdaq 100 futures gained 0.19%.
Last week saw gains for the S&P 500, which rose 0.6%, and Nasdaq rising 1.5%, both hitting record highs, while the Dow dipped slightly.
Earnings season has started strong with majority of reporting S&P 500 companies exceeding expectations. Markets may get a lift if Alphabet and Tesla beat estimates. The Magnificent Seven are projected to drive earnings growth
European markets remain anxious after Trump’s July announcement of 30% EU tariffs starting Aug. 1. Despite EU hopes for a deal, no agreement has been reached. On Sunday, Commerce Secretary Lutnick confirmed Aug. 1 as the hard deadline for tariffs, though noting countries could continue discussions after implementation.
China maintained benchmark lending rates on Monday amid weak consumer sentiment and slowing growth. The People’s Bank of China kept the 1-year loan prime rate at 3.0% and the 5-year LPR at 3.5%. LPR, set for banks’ best clients, is based on commercial bank surveys submitted to the central bank.
This follows Q2 GDP growth of 5.2% year-over-year (down from Q1’s 5.4% but above the expected 5.1%). June retail sales growth slowed to 4.8% from May’s 6.4%, missing forecasts.
The Japanese yen strengthened following the ruling party’s election defeat Singapore’s Straits Times Index reached a new high, extending an eleven-session rally. USDJPY fell 0.35% today.
In the commodities market, gold started the week strong as it jumped 0.55% in the first few hours of trading to $3,367. Silver is also continuing the uptrend with the price of one ounce going up to $38.28
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