Today's Stock Markets July 3. Cautious Markets Awaiting US Occupation and Approaching Duties
MILAN – Markets are treading cautiously ahead of today’s US jobs report , due later in the day, which could provide insights into the Fed’s interest rate outlook. Asian stocks are struggling to find direction as investors await progress on trade deals with the US before the July 9 deadline. The US labor market data will be released a day early today, as tomorrow is a holiday in the US. Analysts are forecasting a drop in jobs to 110,000 from 137,000 the previous month, while the unemployment rate is expected to rise to 4.3% from 4.2%. With less than a week to go before the US president’s July 9 deadline to strike deals to avoid “reciprocal” tariffs, only three countries have done so, fueling fears that his “Liberation Day” measures could come into effect and spark fresh market turbulence.
Germany, PMI services rises
The German services PMI rose to 49.70 in June from 47.10 in May and above the market estimate of 49.4.
Italian services PMI falls below expectations
The Italian services PMI fell in June, but the tertiary economy remained expanding. Last month, the HCOB index stood at 52.1 points from 53.2 and compared to a reading of 52.7 points. This is the largest decline in three months. The composite PMI fell to 51.1 from 52.5 points in May. At mid-year, the Italian services sector continued to grow, recording a new increase in both production and new orders. Despite the slight loss of momentum in both indicators, both growth rates were above trend. Total new orders were held back by weak exports, with the fastest decline in new foreign orders in five months. Companies are looking to the future positively, showing greater confidence and hiring at the fastest pace in a year. However, strong wage costs, as well as increases in energy and raw materials, have kept operating cost growth historically high. Yet, despite rising cost pressures, companies were less aggressive in pricing customers in June.
Milan Stock Exchange: Ftse Mib goes negative -0.19%, banks down
Piazza Affari goes negative a few minutes after the start and the Ftse Mib index marks -0.19% at 39,710.12 points. On the list, Amplifon did well +0.89%, Stm +0.75%, Nexi +0.74%, Recordati +0.66%. Banks fell with Intesa -0.43%, Unicredit -0.90%, Mps -0.44% after Consob's approval of the takeover bid on Mediobanca (-0.35%). Among the main energy companies, Eni recorded +0.46% while Enel -0.48%. Losses also for Iveco -2%, Italgas -0.56%, A2a -0.44%.
Stock Market: Shanghai closes at +0.18%, Shenzhen at +0.95%
Chinese stock markets closed the session in positive territory: the Shanghai Composite index rose by 0.18% to 3,461.15 points, while the Shenzhen Composite index increased by 0.95% to 2,084.67 points.
Stock Market: Europe starts cautiously higher, Milan +0.15%
Stock Market: Europe starts cautiously higher, Milan +0.15%. Paris +0.3% at the start, Frankfurt +0.35%
Gas: opens higher, at TTF at 33.7
Natural gas prices rise in Europe. At the benchmark TTF hub, July futures are trading at 33.7 euros/MWh, up from an eight-week low of 33 euros, as traders weighed up changing weather and supply dynamics. While the recent heatwave in Europe is expected to ease, reducing cooling demand, increased wind generation in northwestern Europe could further reduce gas consumption by power plants. Supply remains stable, with Norwegian exports and LNG shipments steady.
The BTP-Bund spread opens down at 84 points, touches the lows
The spread between BTPs and German Bunds started off on a decline, with the yield differential decreasing by around one basis point, to 84.7 points, the lowest since April 2010. Yields also fell slightly, with those on BTPs falling by 1.5 basis points, to 3.49%.
Gas opens slowly in Amsterdam
Gas started slowly on the Amsterdam market. TTF futures, the benchmark for methane prices in the Old Continent, fell 0.03% to 33.58 euros per megawatt hour.
US Removes Ban on Exports of Chip Tools to China
The world's leading suppliers of microchip design tools, including Cadence and Synopsys, are preparing to resume sales to China after the U.S. government lifted export restrictions, Nikkei Asia reports, as Washington and Beijing continue to negotiate a trade deal. California-based Cadence Design Systems, for example, reported receiving a notification from the U.S. Department of Commerce's Bureau of Industry and Security (BIS) "revoking export restrictions on electronic design automation tools."
Asia in no particular order awaiting US data
Asian stock markets were mixed as they awaited US employment data due in the early afternoon, which is expected to show a rise in the unemployment rate and a slowdown in hiring due to US President Donald Trump's trade policies. Tokyo falls 0.15%, Hong Kong 0.7% while Shanghai advances 0.2% and Shenzhen 1%. Seoul also does well (+1.2%) while Sydney oscillates at parity. Futures on Wall Street, which yesterday marked a new all-time high, and on Europe are cautiously rising, with investors remaining cautious with one eye on Trump's moves on tariffs, who yesterday announced a new agreement with Vietnam, and the other on macro data (PMI on services are also due today), to understand whether a slowdown in the economy could push the Fed to cut tariffs.
Tesla: China car sales rise 3.7% in June
Tesla electric vehicle sales in June rose 3.7% from a year earlier, Tesla China reported. The U.S. automaker's electric vehicle sales jumped 59% from May, reaching 61,000 vehicles in China last month
Asian stocks weak
With less than a week to go before the US president's July 9 deadline to strike deals to avoid "reciprocal" tariffs, only three countries have done so, fuelling fears that his "Liberation Day" measures could take effect and spark fresh market turmoil.
Euro starts steady against dollar, US jobs data awaited
The euro starts off stable on the markets that are looking at the US employment data (non-farm payrolls) that will be released today, one of the main indicators of the health of the American economy. In the meantime, the single currency is changing hands at 1.1798 dollars, almost unchanged, while in Asia the yen is at 143
European stocks: futures in tune
European stock market futures are in good shape with the EuroStoxx 50 at +0.17%. All the main indexes should open positively with Milan leading the way at +0.57%.
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