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Market Review

US: 

The S&P 500 posted its sixth straight record high close, while the NASDAQ edged up to a closing record, in choppy trade as investors gauged the U.S.-EU trade pact and prepared for a week of major market catalysts.

Asia:

Asia-Pacific markets fell as investors awaited the outcome of the ongoing U.S.-China trade talks.

India:

Indian benchmark indices extended their weakness on Monday, bucking the positive global cues, led by delay in the India-US trade deal, consistent FIIs selling and weak quarterly results by India Inc. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global economy:

The U.S. Treasury plans to borrow $1.007 trillion in Q3CY25, which represents a $453 billion increase from its April estimate. The Treasury attributed the higher borrowing needs primarily to a lower beginning-of-quarter cash balance and projected lower net cash flows. The Treasury indicated it expects to maintain a cash balance of $850 billion at the end of September. Looking ahead to Q4CY25, the Treasury projects borrowing needs of $590 billion, with plans to maintain the same $850 billion cash balance through the end of December.

Trump called for the Federal Reserve to reduce interest rates, arguing such a move would help strengthen the American economy. "I think he has to," Trump said, referring to Federal Reserve Chair Jerome Powell’s potential action on benchmark rates. The president made these remarks while appearing alongside British Prime Minister Keir Starmer following their meeting in Scotland.

The United States is continuing to work on various aspects of its European Union trade deal, U.S. Trade Representative Jamieson Greer said. In an interview with CNBC, Greer noted that steel and digital services taxes are among the areas still requiring attention in the U.S.-EU framework that was announced over the weekend.

Commodities:

Oil extended gains on Tuesday, lifted by hopes of improved economic activity after the U.S.-EU trade deal, a potential U.S.-China tariff truce and President Donald Trump's shorter deadline for Russia to end the Ukraine war.

Gold prices edged lower in early trade on Tuesday, weighed down by easing concerns over a global tariff war and a stronger U.S. dollar, while investors focussed on the Federal Reserve policy meeting for interest rate clues.

Currency:

The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc.

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