CURRENCY MARKET WRAP
As of Wed Jul 10th, Singapore Time zone UTC+8
Dollar Index +0.12%, 97.50
USDJPY, +0.15%, $108.89
EURUSD, -0.08%, $1.1206
GBPUSD, -0.40%, $1.2462
USDCAD, +0.23%, $1.3125
AUDUSD, -0.61%, $0.6930
NZDUSD, -0.29%, $0.6603
In trade, USTR Lighthizer and Treasury Secretary Mnuchin spoke to China’s Vice Premier Liu He on Tuesday, according to CNBC. Market reaction was muted, as it was expected that there would be a phone call this week to continue trade talks.
The main highlight for markets this week will be Fed Chair Powell’s testimony before the House Financial Services Committee on monetary policy and the state of the US economy later today. With markets cutting their odds for the Fed cut during the next meeting after the latest NFP report, the content of the speech has the potential to meaningfully impact market expectations.
U.S. Treasuries finished slightly lower in another tight-ranged session. The 2-yr yield increased one basis point to 1.90%, and the 10-yr yield increased two basis points to 2.05%. The U.S. Dollar Index advanced 0.12% to 97.50. WTI crude increased 0.7% to $57.79/bbl.
STOCK MARKET WRAP
S&P500, +0.12%, 2,979.63
Nasdaq, +0.53%, 7,826.86
Nikkei Futures, -0.17%, 21,493.0
S&P 500 increased 0.12% on Tuesday, as shares of large-cap technology stocks helped the stock market overcome a slow start. Overall, there appeared to be a wait-and-see mindset for potential market-moving catalysts this week, including Fed Chair Powell’s semiannual monetary policy testimony on Capitol Hill later today.
Solid gains in the FAANG stocks – Facebook (FB 199.21, +3.45, +1.8%), Apple (AAPL 201.24, +1.22, +0.6%), Amazon (AMZN 1988.30, +35.98, +1.8%), Netflix (NFLX 379.93, +3.77, +1.0%),and Alphabet (GOOG 1124.83, +8.48, +0.8%)– contributed to the positive disposition. The S&P 500 real estate sector (+0.5%) was Tuesday’s best-performing sector.
On the downside, the materials (-1.0%), consumer staples (-0.6%), and industrials (-0.2%) sectors were the lone sectors that finished lower. PepsiCo’s (PEP 131.74, -0.82, -0.6%)better-than-expected earnings results were unable to stir further buying interest in the stock or the consumer staples sector.
In other corporate news, Acacia Communications (ACIA 64.91, +16.85, +35.1%) agreed to be acquired by Cisco (CSCO 56.34, +0.15, +0.3%)for $2.6 billion, or $70 per share, in cash. The deal represented a 46% premium to ACIA’s closing price on Monday.