CURRENCY MARKET WRAP
As of Mon Jul 1st, Singapore Time zone UTC+8
Dollar Index -0.06%, 96.13
USDJPY, +0.14%, $107.89
EURUSD, -0.01%, $1.1370
GBPUSD, +0.17%, $1.2695
USDCAD, -0.02%, $1.3092
AUDUSD, +0.21%, $0.7020
NZDUSD, +0.25%, $0.6719
U.S. Treasuries finished little changed on Friday. The 2-yr yield remained at 1.74%, and the 10-yr yield declined one basis point to 2.00%. The U.S. Dollar Index finished relatively unchanged at 96.13. WTI crude fell 1.7% to $58.38/bbl after news that several EU nations set up a trade channel with Iran to avoid U.S. sanctions.
The United States and China agreed on Saturday to restart trade talks after Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing. “We’re right back on track,” Trump told reporters after an 80-minute meeting with President Xi at a summit of leaders of the Group of 20 (G20) major economies in Osaka, Japan. “We’re holding back on tariffs and they’re going to buy farm products,” Trump said, without giving details about the purchases. Trump tweeted hours later that the meeting with Xi went “far better than expected.” Trump said the U.S. Commerce Department would study in the next few days whether to take Huawei off the list of firms banned from buying components and technology from U.S. companies without government approval. China welcomed the step.
STOCK MARKET WRAP
S&P500, +0.58%, 2,941.76
Nasdaq, +0.18%, 7,671.07
Nikkei Futures, +0.01%, 21,260.0
S&P 500 gained 0.58% on Friday, wrapping up its best June since 1955 and closing out the quarter on a high note, as the market positioned itself for the G-20 meeting between Trump and President Xi.
The S&P 500 financials sector (+1.4%) had its own catalyst, rising on the back of bank stocks after the Fed did not object to the capital plans of 18 of the largest banking institutions. As a result, most of these firms will increase their quarterly dividends and buy back more of their outstanding shares. The rest of the S&P 500 sectors also finished higher, buoyed by a last-minute pop into the close. The energy (+1.2%), industrials (+1.0%), and materials (+0.9%) sectors outperformed the broader market.
Shares of Apple (AAPL 197.92, -1.82, -0.9%) were under pressure after the company announced the departure of its long-time chief design officer, Jony Ives. Separately, The Wall Street Journal reported that Apple will move production of its new Mac Pro to China from the U.S.
In earnings news, Nike (NKE 83.95, +0.29, +0.4%) missed profit estimates for the first time in seven years, but it did calm some nerves after it maintained its full-year guidance. Constellation Brands (STZ 196.94, +8.73, +4.6%) pleased investors with its solid results and upbeat guidance.