- Equities began the new quarter on a high note as electric vehicle manufacturers Tesla and BYD rose on the strength of record quarterly sales. When Saudi Arabia and Russia continued to reduce oil production, oil prices rose.
- As BYD increased in Hong Kong trade, leading shares of battery suppliers also increased, Tesla increased by 6.5% in premarket trading. The Nasdaq 100's contracts increased as the tech index recorded its best-ever first half of the year.
- Furthermore boosting the bullishness, crude prices reversed previous losses to soar after Saudi Arabia's state-run news agency reported that the nation will extend its one-month unilateral oil output cut, placing a cap on supplies even as the market is anticipated to tighten. Russia, an ally in the OPEC+, has announced new export restrictions.
- After a surprisingly good first half, investors are lowering their expectations for stocks. While central banks have maintained their hawkish language, large gains in technology shares have been driven by indications that US inflation is beginning to moderate. For hints on the state of the economy, traders are turning to the forthcoming earnings season and statistics like Friday's NFP. Ahead of Tuesday's Independence Day vacation, American markets could be calmer.
- UBS now expects one more 25 BPS hike by the ECB in September, taking the terminal rate forecast to 4%.
- Russia’s Deputy PM Novak: Russia will reduce oil supply in August by 500K BPD by reducing its exports by that quantity to global markets.
