- The Asian session brought strong gains across major equity benchmarks; the Nikkei rose more than 1.2%, while Hong Kong’s Hang Seng gained 1.6%. The market focus was on Samsung and SK Hynix deal with OpenAI; SK Hynix shares reached an 25-year high (up 9%), while Samsung gained more than 4%. On the macro side, consumer sentiment in Japan showed a slight improvement, edging up to 35.3 from 35.2 and 34.9 previously.
- The rally in Asia translated into improved sentiment for both European and U.S. index futures, with the US100 climbing 0.25% toward the 25,100 level. At 9 AM GMT, eurozone labor market data will be released, followed by U.S. jobless claims at 12:30 PM GMT and a revision of durable goods orders at 2 PM GMT
- Yesterday’s weaker-than-expected ADP employment data was welcomed by markets, fueling expectations of additional Fed rate cuts later this year. Tomorrow NFP report will be probably delayed, leaving the Fed with quite dovish labour market data, suggesting even 2 more cuts this year.
- According to Goldman Sachs, the likelihood of accelerated economic growth in the U.S. has now increased. On the other hand, S&P Global warned that the ongoing U.S. government shutdown is adding uncertainty to the broader economic outlook.
- Fitch Ratings commented to the US government hutdown: 'A protracted disruption could slightly slow US economic growth. (...) The macroeconomic impact of the shutdown is limited in the near term.' Markets see the shutdown as a potentially dovish, which support gold but impact the US Dollar
- Intel shares gained yesterday after the Semafor informed that the company is now in early talks to add AMD as a foundry customer. Also, Pfizer shares surged more than 6% after upgraded rating by BMO analysts and Politico's report that Trump delayed pharma tariffs to negotiate drug prices.
- Trump last week threatened triple-digit tariffs on pharmaceutical imports beginning Wednesday. The White House now says it may not have to impose them. According to a White House official, the Trump administration has paused its plan to impose the duties in order to negotiate agreements with pharmaceutical giants to avoid higher tariffs on their name-brand products, such as the one announced with Pfizer.
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