🗓 Monday, July 28
► European markets edge higher post-deal but profit-taking sets in; EUR weakness signals concern
The Stoxx 600 rose +0.4% as markets initially welcomed the US-EU trade deal, though early optimism faded, especially among exporters and autos. Germany’s DAX trades flat, while France’s CAC 40 rose +0.25% and UK’s FTSE 100 slipped -0.25%. Automakers retreated from highs, and Heineken shares dropped on weak summer sales. The EUR/USD fell sharply to 1.165 (-0.75%), its lowest in a week, as traders assessed the uneven impact of the tariff terms. German 10Y yields dipped 3bps to 2.69%, reflecting defensive demand.
► Wall Street futures firm on trade optimism; Big Tech earnings week begins
US markets are poised for more gains after a series of trade deals including the US-EU trade deal and signs of a US-China truce extension. S&P 500 futures +0.2%, Nasdaq +0.3%, building on Friday’s record close but seeing some profit taking after initial strong gains. Investors brace for a massive earnings wave, with Microsoft, Meta, Apple, and Amazon reporting this week. Tesla gained premarket on a $16.5B AI chip deal with Samsung. Defense stocks jumped as Trump touted European arms purchases, while energy names gained after the EU committed to $750B in US energy imports. The USD extended gains (DXY +0.55%), and 10Y Treasury yields held at 4.39%.
► Asia mixed as Japan lags, China & Korea advance
Asian equities traded mixed amid upbeat global cues and cautious local sentiment. Japan’s Nikkei fell -1.1% on profit-taking despite benefiting from a stronger USD (USD/JPY near 148.00; +0.3%). China’s Shanghai Index +0.12% and Shenzhen +0.44%, supported by semiconductor optimism after Tesla’s Samsung deal. Korea’s Kospi rose +0.42%, while India’s Nifty 50 declined -0.63%. Traders remain focused on US-China trade headlines and Bank of Japan’s decisionlater this week. FX markets reflected broad USD strength, with AUD, NZD, and INR all weaker.
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