Global Markets:
- Asian Stock Markets : Nikkei down 2.13%, Shanghai Composite down 0.46% Hang Seng down 0.62% ASX up 0.07%
- Commodities : Gold at $4,447.90 (-0.58%) Silver at $65.218 (-1.57%), Brent Oil at 91.54 (0.74%), WTI Oil at 84.45 (0.80%)
- Rates : US 10-year yield at 4.740, UK 10-year yield at 5.0658, Germany 10-year yield at 3.2179
News & Data:
- (CAD) Median CPI y/y 2.0% to 2.0% expected
Markets Update:
U.S. stock futures fell early Tuesday as investors weighed persistent tensions between the U.S. and Iran, rising oil prices and renewed inflation concerns that pushed Treasury yields higher.
Dow Jones Industrial Average futures dropped 73 points, while S&P 500 futures declined 0.32%. Nasdaq-100 futures fell 0.59%.
Asian markets were mixed. South Korea’s Kospi jumped 1.9%, while Japan’s Nikkei 225 slipped 0.94%. Australia’s S&P/ASX 200 gained 0.19%, while Hong Kong’s Hang Seng Index fell 0.19% and China’s CSI 300 lost 0.12%.
The weakness in U.S. futures followed a losing session on Wall Street. Oil prices rose more than 2% amid uncertainty over a U.S.-Iran ceasefire that expired Monday. Negotiations have stalled, adding to concerns about further disruptions and inflation.
Higher oil prices pushed longer-term Treasury yields higher, with the 30-year Treasury yield reaching its highest level since June 2007. The Dow and S&P 500 each fell 0.5% on Monday, while the Nasdaq declined 0.3%.
Despite the pullback, iCapital chief investment strategist Sonali Basak said the stock market may have further room to rise, particularly as gains broaden beyond major technology stocks.
Investors will focus Tuesday on July import and export price data, housing starts and pending home sales. Home Depot is also scheduled to report second-quarter earnings before the opening bell. Markets are watching corporate earnings for clues about consumer demand.
Upcoming Events:
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