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Market Review

US:

US stocks climbed towards new record highs as traders awaited the beginning of earnings season while monitoring developments in the US presidential race and looking for signals on the Federal Reserve's future actions.

Asia:

Asian stock indices followed their US peers and opened higher with Japan's Nikkei rising the most by over 1% to hit its fresh record high of 41,239.06. Topix also rose by 0.5%.

India:

India's benchmark stock indices closed little changed on the first day of the week due to a lack of any major triggers, even as market participants await first-quarter earnings to give direction. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global economy:

The prospect of European tariffs cut 20-30 percentage points off China's growth in exports of electric and plug-in hybrid cars in recent months, an official at a leading Chinese auto industry body said. Last week, the EU introduced provisional tariffs of up to 37.6% on China-made EVs to safeguard against what it described as a potential flood of unfairly subsidised EVs. China's total car exports for June rose 28% year on year following a 23% gain in May, underpinned by robust gasoline car exports. Domestically, China's car sales fell 6.9% in June from a year earlier, dropping for a third straight month as government incentives failed to spur consumer demand in a sputtering economic recovery. Australian consumer sentiment worsened in early-July, coming close to its weakest level since the COVID-19 pandemic as sticky inflation saw consumers grow more fearful of higher interest rates. The Westpac-Melbourne Institute consumer sentiment index fell 1.1% in July, compared to a 1.7% rise in the prior month. Sentiment was battered chiefly by three consecutive months of stronger-than-expected inflation prints, which ramped up expectations that the Reserve Bank of Australia could hike rates further this year.

Commodities:

Gold prices ticked up on Tuesday, with investors awaiting Fed Reserve chair Powell’s testimony and June inflation data to assess the next policy move by the US central bank. Oil prices were little changed early on Tuesday after a hurricane that hit a key U.S. oil producing hub in Texas caused less damage than expected.

Currency:

The U.S. dollar hung near a multi-week low versus major peers on Tuesday, still smarting from Friday's unexpectedly soft jobs report as traders awaited testimony from Fed Reserve for clues on the path of interest rates

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