The NZD is the strongest and the CHF is the weakest as the North American session begins

The NZD is the strongest and the CHF is the weakest as the North American session begins. Today in Canada they will observe Canada Day (July 1st holiday) and as a result will be closed for the day. The US is open to start the day, but stocks will close early at 1 PM as they start the July 4th celebration early (in reality many traders will be taking the day off today as well). The US bond market will close at 2 PM ET. The USD is mostly higher to start the 2nd half of the year.

In the second quarter, Tesla reported record vehicle deliveries of 466,140, an 83% increase from the same period last year and beating expectations of 448,350. This strong performance is believed to be a result of price cuts implemented earlier in the year to stimulate demand. Tesla’s shares rose by over 6% in pre-market trading.

As the second half of 2023 begins, U.S. stock futures remained mixed ahead of a shortened trading week due to the Independence Day holiday. The Nasdaq Composite was the standout performer in the first half of the year, experiencing its best first half since 1983. The gains were largely influenced by artificial intelligence flows into shares like Nvidia, Microsoft, Alphabet. Apple shares also surged and reached the $3 trillion market in capitalization level

Having said that, Apple is reportedly cutting its production targets for the mixed reality Vision Pro headset due to the product’s complexity. Despite its potential to be as influential as the iPhone, concerns remain about the headset’s $3,500 price tag and potential demand impact. Apple shares are trading down marginally by 0.43% in premarket trading

The future of Microsoft’s proposed $75 billion deal to acquire Activision Blizzard is expected to be decided by a San Francisco court this week, on a Federal Trade Commission request to temporarily block the merger due to potential anti-competitive impacts.

Finally, oil prices fluctuated as traders weighed the potential impact of additional Federal Reserve interest rate hikes on global economic activity and oil demand. Other analysts have suggested that oil supplies will likely tighten later this year following Saudi Arabia’s commitment to reduce output in July.

Overnight, several significant economic releases were reported. In China, the Caixin Manufacturing Purchasing Managers’ Index (PMI) registered at 50.5, slightly below the previous figure of 50.9 but above the anticipated 50.0. This indicates a marginal expansion in China’s manufacturing sector. Meanwhile, Switzerland’s Consumer Price Index (CPI) saw a 0.1% month-over-month increase, falling short of the expected 0.2% rise and underperforming the prior rate of 0.3%. This result signifies a lesser-than-expected inflation rate in Switzerland’s economy. In Spain, the Manufacturing PMI was recorded at 48.0, aligning with expectations but showing a decline from the earlier 48.4, suggesting a contraction in Spain’s manufacturing sector.

For the upcoming economic releases:

  • The Institute for Supply Management (ISM) Manufacturing PMI for the United States is due. The last recorded figure was 46.9, and it is forecasted to rise slightly to 47.0. The ISM Manufacturing Prices for the United States will also be released. The previous figure stood at 44.2, while the expected figure is slightly lower at 44.0. Employment is expected at 50.5 versus 51.4 last month. For your guide new orders were at 42.6. There is no estimate for that component.

Before the ISM, the S&P global manufacturing PMI for June will be released. Last month’s final came in at 48.4. The flash estimate came at 46.3 on June 23.

A snapshot of the markets currently shows:

  • Crude oil is trading near unchanged at $69.90
  • Spot gold is trading down $2.60 or -0.14% $1904.67
  • Silver is down $0.18 -0.80% to $22.37
  • Bitcoin is trading higher at $30,929, but below the high price of $31,268

In the premarket for US stocks, the major indices are trading mixed in premarket trading. The NASDAQ is higher while the S&P and Dow are trading down in early premarket trading.

  • Dow Industrial Average is trading down -55 points after Friday’s 285.18-point rise
  • S&P index is trading down -2.2 points after Friday’s 53.92-point rise (up 1.23%)
  • NASDAQ index is trading up 8 points after Friday’s 196.59-point surge (1.45%)

In the European equity markets, the major indices are trading mostly higher with the exception of the German DAX

  • German DAX is down -0.16%
  • France’s CAC is up 0.10%
  • UK’s FTSE 100 is up 0.39%
  • Spain’s Ibex is up 0.45%
  • Italy’s FTSE MIB is up 0.89%

In the Asian Pacific market today, markets closed higher

  • Japan’s Nikkei rose 1.7%
  • Australia’s S&P/ASX 200 index rose 0.59%
  • China’s Shanghai composite index rose 1.31%

In the US debt market yields are continuing it’s run higher

  • 2-year yield 4.952% +7.6 basis points
  • 5-year yield 4.192% +6.0 basis points
  • 10-year yield 3.856% +3.7 basis points
  • 30-year yield 3.867% +1.4 basis points

In the European debt market, benchmark 10-year yields are higher as well:

This article was written by Greg Michalowski at Source