Close July 1

In European Equity Markets the pan-European Stoxx 600 closed 0.9%, slightly cutting its early gain after weak euro zone PMI data. Technology stocks led gains, up nearly 2% having hit a 1-year high earlier in the session. Food and beverages was the only sector trading in the red. European chipmakers monopolized the top of the European blue chip index on Monday in response to the Huawei news, with STMicro and ASMI adding more than 5% while AMS and Infineon also climbed more than 4% by mid-afternoon.


In Currency Markets the U.S. dollar rose to two-week highs on Monday after the United States and China agreed to restart their troubled trade talks, with investors selling safe-haven currencies such as the Japanese yen and Swiss franc as tensions eased between the world’s two largest economies. The yen, which investors tend to buy when they are looking for safety, fell, pushing the dollar up 0.3% on the day at 108.24 yen. The euro, meanwhile, fell 0.3% to $1.1339. The dollar also rose versus the Swiss franc, up 0.8 pct to 0.9839 franc.


In Commodities Markets oil prices were up on Monday as OPEC and its allies looked on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week. Brent crude futures for September delivery rose as high as $66.75 a barrel and were up $1.25 at $65.99 a barrel. The August delivery contract closed at $66.55 a barrel on Friday. U.S. crude futures for August climbed $1.22 to $59.69 a barrel, after earlier hitting their highest in over five weeks at $60.28.


In US Equity Markets gains in technology stocks lifted the S&P 500 to a record high on Monday, powered by growing optimism around U.S.-China trade talks and a likely reprieve for Chinese telecoms company Huawei. The S&P 500 was up 29.26 points 0.99%, at 2,971.02. The Nasdaq Composite rose 1.45%, at 8,122.26. Tech stocks jumped 1.80%, with heavyweight Apple Inc’s 2.9% gain providing the maximum support. Chipmakers with a sizable revenue exposure to China jumped, fueling a 3.76% gain in the Philadelphia Semiconductor index.


In Bond Markets U.S. Treasury yields climbed from their session lows on Monday as a gauge of domestic factory activity declined less than forecast in June, reducing anxiety about a sharp pullback of the longest U.S. economic expansion on record. Benchmark 10-year Treasury yields were up 1.70 basis points at 2.017%, while two-year Treasury yields were up 3.60 basis points at 1.777%.