- Markets pull back after last week's rally with the S&P 500 falling 0.6% and Nasdaq 100 dropping 1.1%, ending a four-day advance as investors brace for major earnings reports and economic data amid ongoing trade tensions.
- Massive power outage hits Spain and Portugal disrupting transportation, grounding flights, and forcing hospitals to suspend routine operations, with the cause not immediately established though officials initially couldn't rule out cyber attack.
- Mega-cap tech earnings in focus with Microsoft, Apple, Amazon, and Meta reporting this week, representing companies with combined market value of approximately $20 trillion that could provide crucial insights into corporate resilience during trade uncertainties.
- Conflicting signals on U.S.-China trade negotiations as Treasury Secretary Scott Bessent stated that "all aspects" of U.S. government are in contact with China but `suggested Beijing must take first step in de-escalation, contradicting earlier remarks from President Trump about ongoing discussions.
- Foreign investors pulling back from U.S. markets according to Deutsche Bank research, which shows marked cessation of inflows into U.S. bond and equity markets over the past two months following tariff announcements, potentially challenging dollar strength.
- Market strategists predict range-bound trading with Morgan Stanley's Michael Wilson expecting S&P 500 to remain between 5,000-5,500 and JPMorgan strategists forecasting a 5,200-5,800 range amid recession concerns and trade uncertainties.
- Trump administration issues E15 gasoline waiver allowing higher-ethanol blend sales this summer nationwide to expand fuel supply during peak driving season, potentially benefiting biofuel producers and corn farmers.
- Oil prices decline with Brent crude falling 2.43% to $64.34 and WTI down 2.42% to $61.87 amid concerns about demand impact from U.S.-China trade tensions.
- NATGAS is up over 6% thanks to increased demand in the US
- Treasury yields steady with 10-year yield little changed at 4.24%, while the dollar weakened with the Bloomberg Dollar Spot Index down 0.2%.
- Gold continues upward trend rising 0.9% to $3,330.29 per ounce as investors seek safe haven assets amid economic uncertainty.
- Bitcoin falls slightly down 0.5% to $93,842.98, while Ether drops 2.2% to $1,762.95 as cryptocurrency markets show mixed performance.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
