Precise Investors Editorial Team
Europe’s STOXX 600 gained 0.2% in early trading while futures for the S&P 500 jumped 0.5%
European stocks and U.S. futures ticked higher on Monday as the potential for increased energy supplies pulled down oil prices and promised relief from inflationary pressures, while investors awaited a crucial earnings season for the AI sector.
While there were no new developments in the fractious Iran-U.S. peace talks, ships are passing through the Strait of Hormuz, with 160 vessels reported transiting from Monday to Saturday last week.
OPEC+ also agreed to a further increase in output targets by 188,000 barrels per day from August. Brent crude dropped 1.4% to near four-month lows at $71.10 a barrel.
Europe’s STOXX 600 gained 0.2% in early trading while futures for the S&P 500 jumped 0.5% after Friday’s U.S. holiday break.
Lower oil prices should support the growth-sensitive sectors and countries which have underperformed during the last three months, said Mohit Kumar, chief European economist at Jefferies.
While we remain long U.S. tech, we have added to Asia and growth sensitive sectors in recent weeks, he said.
Investors will be watching closely for how artificial intelligence-related companies are faring amid some fears about a bubble in the upcoming earnings season.
South Korea’s hot market cooled a little last week but is still up 90% for the year so far as AI demand and tight supplies boost chip prices. The KOSPI index declined 0.5% on Monday, while Japan’s Nikkei was flat.
South Korean chipmaker SK Hynix will launch a U.S. listing on Monday to raise around $28 billion, according to regulatory filings, in a further test of the AI wave’s strength.
In currency markets, the dollar index ticked up 0.1% to 101.04 after dipping in the wake of Thursday’s weaker-than-expected June U.S. payrolls report.
The euro was down 0.1% at $1.142, just above the recent 13-month low of $1.133.
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