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US jobs and inflation in focus

This week, US labour market data take centre stage, with JOLTS job openings and consumer confidence on Tuesday, ADP employment on Wednesday and the June nonfarm payrolls report on Thursday. Inflation remains a key theme as Germany and France release June consumer price data on Tuesday, followed by euro-area inflation on Wednesday and Swiss inflation on Thursday. A broad range of global Purchasing Managers’ Indices throughout the week will give markets a timely update on manufacturing and services activity. Central bank communication also draws attention, with ECB President Christine Lagarde speaking several times during the week and Fed Chair Kevin Warsh appearing on Wednesday. Canadian markets are closed on Wednesday for Canada Day, while US markets are closed on Friday for Independence Day.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

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Asian equities traded unevenly on Monday as investors weighed renewed doubts over artificial intelligence valuations and lingering tensions between the US and Iran despite signs of a pause in hostilities. South Korea’s KOSPI fell 1.2% and Japan’s Nikkei 225 lost about 0.8%, while Australia’s S&P/ASX 200 rose 0.4%, Hong Kong’s Hang Seng gained 1.7% and China’s CSI 300 was little changed, reflecting caution after last week’s technology-led sell-off. South Korean chipmakers Samsung Electronics and SK Hynix were trading deep in the red, extending pressure on the semiconductor sector as investors rotated away from some of the market’s strongest performers. Japan’s retail sales data offered a brighter signal, with May sales rising 5.3% year-on-year, up from market expectations for a much smaller increase, suggesting domestic consumption remained firm.

China tightens curbs on Japan

China widened export restrictions on Japanese defence-linked organisations on Monday, blacklisting four government research institutes and placing 20 more entities, including drone makers, nuclear-related firms and units of Mitsubishi Electric and Mitsubishi Heavy Industries, under tighter licensing scrutiny. The move marks the latest step in a campaign Beijing began in January, after a further round of controls in February, aimed at limiting Japan’s access to Chinese dual-use goods such as rare earths and other critical minerals.

US tech stocks retreat

US technology shares fell again on Friday, with the Nasdaq 100 dropping 1.1% to 29,118.24 points after concerns grew that consumers may resist planned price increases by major technology companies. The broader market was more resilient, with the S&P 500 edging down 0.1% to 7354.02 points and the Dow Jones Industrial Average slipping 0.1% to 51,876.11 points, a day after the Dow reached a record high. Chipmakers led the decline as investors questioned whether demand can keep pace with high valuations linked to artificial intelligence, while memory-chip producer Micron slid 6.7% after surging the previous day.

European stocks fall on AI fears

Europe’s main equity markets ended lower on Friday as investors took profits after the previous day’s gains and reassessed elevated valuations linked to artificial intelligence. The EuroStoxx 50 fell 0.7%, while Switzerland’s SMI dropped 0.4% after a record high on Thursday. Technology shares led the declines as concerns grew over the near-term returns on AI spending and the effect of higher memory-chip costs on consumer demand, pushing ASML down 1% and STMicroelectronics 3.8% lower.

US and Iran agree to halt attacks

Oil prices moved higher on Monday after reports said the US and Iran had agreed to stop attacking each other following weekend clashes near the Strait of Hormuz. Brent crude rose as much as 0.2% to just below USD 73 a barrel, while West Texas Intermediate traded below USD 70, both retreating from larger gains as investors weighed the risk to shipments through the key chokepoint after a supertanker carrying about 2 million barrels of Qatari crude was hit. Gold was 1.2% lower, trading around USD 4040 per ounce, while bitcoin was trading slightly weaker around USD 59,700. The Dollar Index was little changed, remaining near recent highs.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Prosus.

Economic data in focus: euro-area consumer confidence (11:00), ECB President Christine Lagarde speaks (19:30).

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Editor: Alessandro Fezzi
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