Key Takeaways
- U.S. E-mini Futures show slight gains with the S&P 500 up 0.23%, Nasdaq 100 gaining 0.40%, and Dow jumping 0.15%, indicating a positive start to trading.
- The Eurozone anticipates lower inflation for the next year at 2.6% in June, a decrease from 2.8% in May, while the ECB reports unchanged 3 and 5-year inflation expectations.
- US-China trade talks continue in Stockholm, with discussions potentially including China's oil imports from Russia and Iran, amid reports of a falling euro as traders react to news of a trade deal potentially unraveling.
- Nomura Holdings Inc. (NMR) has reported earnings that surpassed expectations, driven by a significant surge in stock trading activity.
- Stellantis (STLA) projects a substantial €1.2 billion tariff hit in the second half of the year, highlighting the direct impact of ongoing trade tensions on major corporations.
U.S. E-mini Futures are signaling a positive open for American markets this Tuesday, with the S&P 500 climbing 0.23%, the Nasdaq 100 advancing 0.40%, and the Dow Jones Industrial Average gaining 0.15%. This slight uptick comes as investors digest a mix of global economic data and ongoing geopolitical developments.
In the Eurozone, new data suggests a moderating inflation outlook for consumers. Eurozone consumers now expect a lower inflation rate of 2.6% for the next year in June, down from 2.8% in May. Despite this, the European Central Bank (ECB) has reported that inflation expectations for the 3 and 5-year horizons remain unchanged, indicating a stable long-term view from the central bank. The euro, however, continues to drop as traders react to news of a trade deal falling apart.
Meanwhile, the U.S. trade negotiating team has arrived in Stockholm for the second day of talks with China. These crucial discussions are reportedly complex, with China's Foreign Ministry spokesperson Guo Jiakun commenting on previous remarks by U.S. Treasury Secretary Scott Bessent, suggesting that the talks could extend to China’s oil imports from Russia and Iran. Trade flux continues to be a significant theme, even as the Spanish economy sustains strong growth. Iron ore prices remain above $100 per ton amidst these Sino-US trade discussions, while coal prices continue to drop.
In corporate news, Nomura Holdings Inc. (NMR) announced earnings that surpassed market expectations, largely attributed to a robust surge in stock trading volumes. This performance provides a positive signal for the financial services sector. Conversely, Stellantis (STLA) anticipates a significant financial impact from tariffs, projecting a €1.2 billion hit in the second half of the year. This underscores the tangible effects of global trade policies on multinational corporations. Fitch Ratings also commented that EU tariffs, while not directly altering EU sovereign ratings, may worsen existing credit challenges. Separately, Indonesia and Malaysia have agreed to resolve existing trade barriers, signaling efforts to foster regional economic cooperation.
Adding a political dimension to the energy market, U.S. President Trump weighed in on North Sea oil via Truth Social, stating it is a "treasure trove" for the UK. He criticized the high taxes, arguing they make drilling uneconomical and urged the UK to incentivize drillers rapidly to unlock this vast fortune.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.