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Al Etihad
4 days ago
- Business
- Al Etihad
Shares steady, yen up as markets unfazed by Japanese politics
21 July 2025 12:33 SYDNEY/LONDON (Reuters)European shares held steady and the yen firmed on Monday, as markets shrugged off the Japanese ruling coalition's defeat in upper house weekend elections and turned to focus on this week's US tech earnings and European Central Bank policy were also hoping for some progress in trade talks ahead of US President Donald Trump's August 1 tariff deadline, with US Commerce Secretary Howard Lutnick still confident a deal could be reached with the European were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest. European Commission President Ursula von der Leyen will meet Xi on pan-European benchmark STOXX 600 index was flat, while the UK's blue-chip FTSE 100 was up 0.1%. The euro was 0.1% higher at $ focus was on weekend news out of Japan, where the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline vowed to stay on, which along with a market holiday, limited the reaction. The yen was 0.5% firmer at 148.065 to the dollar and up 0.3% against the euro."The loss was within the range of expectations, and actually the outlook was even more pessimistic," said Nissay Research Institute chief economist Tsuyoshi Ueno."In terms of negotiations with the US, it is easy to doubt whether a government with such a weak foundation is reliable as a negotiating partner," he added. "For the Bank of Japan, if there is political instability, it will be difficult to raise interest rates, and pressure on the yen will continue."The BOJ still has a bias to raise rates further, but markets imply little chance of a move until late the Nikkei was shut, futures traded at 39,885, up on the cash close of 39,819. MEGA CAPS KICK OFF S&P 500 futures edged 0.2% higher, while Nasdaq futures were up 0.3%. U.S. indexes are already around record highs in anticipation of more solid quarterly earnings are gearing up for a host of big tech company results this week, including Google owner Alphabet, Tesla and IBM."They are going to be key for sentiment because frankly there's not a lot else to drive things," said Michael Brown, senior research strategist at Pepperstone."We saw the banks deliver decent results last week, so you'd certainly be looking for the big tech names to keep up with that to reinforce the bull case (for equities)," he also expect upbeat news for defence groups RTX , Lockheed Martin and General Dynamics. Higher government spending around the globe has seen the S&P 500 aerospace and defence sector rise 30% this year, while defence stocks in Europe have also hit record tech news, Microsoft issued an alert about "active attacks" on server software used by government agencies and businesses, urging customers to download security euro zone government bond yields eased ahead of euro zone PMI data and the European Central Bank meeting later this week, at which it is expected to leave rates at 2% following a string of euro dipped 0.5% last week, moving off a recent near-four-year top of $1.1830. The dollar index was a fraction lower at Treasury yields fell, leaving the yield on the benchmark 10-year note down 4.5 basis points at 4.286%. Bonds got a boost late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on edge. In commodity markets, gold firmed 0.5% to $3,365 an ounce , with all the recent action in platinum, which last week hit its highest since August 2014. Stock Markets Continue full coverage
Economic Times
5 days ago
- Business
- Economic Times
Asian shares, yen weather Japan uncertainty as earnings loom
Investors were also hoping for some progress in trade talks ahead of President Donald Trump's August 1 tariff deadline, with U.S. Commerce Secretary Howard Lutnick still confident a deal could be reached with the European Union. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads SYDNEY: Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech were also hoping for some progress in trade talks ahead of President Donald Trump's August 1 tariff deadline, with U.S. Commerce Secretary Howard Lutnick still confident a deal could be reached with the European were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline expressed his intention to stay in the position, which along with a market holiday, limited the reaction and the yen was 0.4% firmer at 148.29 to the dollar."Ishiba will try to govern with support from some within the opposition, but this likely means a looser fiscal policy and is not good news for bond yields," said Rodrigo Catril, a senior FX strategist at NAB."History also suggests that domestic political uncertainty tends to keep the BOJ on the side-lines, so the prospect of rate hikes is now set to be delayed for a little bit longer."The Bank of Japan still has a bias to raise rates further but markets are pricing little chance of a move until the end of the Nikkei was shut, futures traded up at 39,875 and just above the cash close of 39, broadest index of Asia-Pacific shares outside Japan was flat, while South Korean stocks added 0.4%.MEGA CAPS KICK OFFS&P 500 futures and Nasdaq futures both edged up 0.1%, and are already at record highs in anticipation of more solid earnings reports.A host of companies reporting this week include Alphabet and Tesla, along with also expect upbeat news for defence groups RTX , Lockheed Martin and General Dynamics. Ramped up government spending across the globe has seen the S&P 500 aerospace and defence sector rise 30% this bond markets, U.S. Treasury futures held steady having dipped late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the true inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on European Central Bank meets this week and is expected to hold its rates steady at 2.0% following a string of cuts."The press conference will likely keep highlighting uncertainty and need to wait for tariff negotiations to conclude before deciding the next step," said analysts at TD Securities in a note. "Similarly, its 'meeting-by-meeting' language would be retained in the release."The euro was unchanged at $1.1630 in early trading, having dipped 0.5% last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction lower at commodity markets, gold was little changed at $3,348 an ounce with all the recent action in platinum which last week hit its highest since August 2014. Oil prices were caught between the prospect of increased supply from OPEC+ and the risk European Union sanctions against Russia for its war in Ukraine could curb its edged up 0.1% to $69.36 a barrel, while U.S. crude added 0.1% to $67.39 per barrel.
Time of India
5 days ago
- Business
- Time of India
Asian shares, yen weather Japan uncertainty as earnings loom
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel SYDNEY: Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech were also hoping for some progress in trade talks ahead of President Donald Trump's August 1 tariff deadline, with U.S. Commerce Secretary Howard Lutnick still confident a deal could be reached with the European were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline expressed his intention to stay in the position, which along with a market holiday, limited the reaction and the yen was 0.4% firmer at 148.29 to the dollar."Ishiba will try to govern with support from some within the opposition, but this likely means a looser fiscal policy and is not good news for bond yields," said Rodrigo Catril, a senior FX strategist at NAB."History also suggests that domestic political uncertainty tends to keep the BOJ on the side-lines, so the prospect of rate hikes is now set to be delayed for a little bit longer."The Bank of Japan still has a bias to raise rates further but markets are pricing little chance of a move until the end of the Nikkei was shut, futures traded up at 39,875 and just above the cash close of 39, broadest index of Asia-Pacific shares outside Japan was flat, while South Korean stocks added 0.4%.MEGA CAPS KICK OFFS&P 500 futures and Nasdaq futures both edged up 0.1%, and are already at record highs in anticipation of more solid earnings reports.A host of companies reporting this week include Alphabet and Tesla, along with also expect upbeat news for defence groups RTX , Lockheed Martin and General Dynamics. Ramped up government spending across the globe has seen the S&P 500 aerospace and defence sector rise 30% this bond markets, U.S. Treasury futures held steady having dipped late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the true inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on European Central Bank meets this week and is expected to hold its rates steady at 2.0% following a string of cuts."The press conference will likely keep highlighting uncertainty and need to wait for tariff negotiations to conclude before deciding the next step," said analysts at TD Securities in a note. "Similarly, its 'meeting-by-meeting' language would be retained in the release."The euro was unchanged at $1.1630 in early trading, having dipped 0.5% last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction lower at commodity markets, gold was little changed at $3,348 an ounce with all the recent action in platinum which last week hit its highest since August 2014. Oil prices were caught between the prospect of increased supply from OPEC+ and the risk European Union sanctions against Russia for its war in Ukraine could curb its edged up 0.1% to $69.36 a barrel, while U.S. crude added 0.1% to $67.39 per barrel.
