Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Top 5 Things to Know in the Market on Monday

Economy Jul 22, 2019 06:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
GBP/USD
+0.73%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/GBP
-0.64%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HAL
+2.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WHR
+0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
+0.73%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - Here are the top five things you need to know in financial markets on Monday, July 22:

1. Oil rises on Middle East tensions; Libya restarts output

Oil prices jumped around 2% overnight as tensions in the Middle East showed no signs of cooling.

U.K. Prime Minister Theresa May was set to hold an emergency meeting on Monday after a British-flagged tanker was seized by Iran in the Gulf last Friday. Media reports suggested the country's politicians were looking at freezing Iranian assets.

The British committee is expected to discuss procedures to maintain the security of shipping in the Strait of Hormuz, the bottleneck for shipping in and out of the Persian Gulf.

Capping gains in oil, Libya's largest oilfield resumed production at half capacity on Monday after being shut down since Friday.

2. Hawkish Fed official sees no reason for rate cuts

Boston Federal Reserve President Eric Rosengren forced markets to reevaluate their expectations for policy easing from the U.S. central bank at the July 30-31 meeting.

Rosengren said other monetary authorities such as the European Central Bank or the Bank of Japan may have reasons for policy easing, but the U.S. economy did not require stimulus.

“I don’t want to ease if the (U.S.) economy is doing perfectly well without the easing,” he said in an interview with CNBC, aired after Friday’s market close.

After the interview, markets toned down odds for a 50 basis point cut at the next meeting, although the implied probability of a quarter-point reduction remained at 100%.

3. U.S. stocks set for bounce with earnings in focus

U.S. futures pointed to a higher open as Wall Street looked set for a slight recovery from last week’s weekly decline in the S&P 500 and Nasdaq , the largest since late May.

With no major U.S. macro data on the agenda, markets will focus on company earnings reports ahead of the open from the likes of Halliburton (NYSE:HAL) and RPM International (NYSE:RPM).

Whirlpool (NYSE:WHR) and TD Ameritrade (NASDAQ:AMTD) will release their quarterly earnings after the market close.

In European earnings, rising healthcare spending by the Chinese government helped Dutch health-technology company Philips (NYSE:PHG) post better-than-expected sales growth for the second quarter.

Outside of earnings, Bridgewater Associates (NASDAQ:BWB) reportedly saw its flagship fund Pure Alpha tumble 5% in the first half of the year. That was one of its worst performances in two decades, according to the Financial Times. The fund, which bets on macro trends, was surprised by a positive reaction from global stocks and bonds to hopes of looser monetary policy.

4. China’s new Nasdaq-style market soars

Despite wider concerns over the global economy putting a dent in Asian stocks, a new Nasdaq-style board for Chinese firms - the Science and Technology Innovation Board, or STAR Market - soared overnight in its first day of trading.

Sixteen of the first batch of 25 companies - ranging from chipmakers to health care firms - more than doubled their already frothy initial public offering prices on the STAR Market, operated by the Shanghai Stock Exchange.

The firms posted average gains of 140% in a raucous first day of trade that tripped the exchange’s circuit breakers, which were designed to keep activity within reasonable limits. The day’s weakest performer leapt 84%.

5. Pound under pressure from Brexit-related political strife

Voting in the British Conservative party's leadership contest, which will effectively decide the identity of the next U.K. Prime Minister, ends at 12:00 PM ET (16:00 GMT),with former Foreign Secretary Boris Johnson widely expected to win against rival Jeremy Hunt. The pound was off 0.3% against the U.S. dollar and the euro after two senior ministers threatened their resignation if Johnson wins.

Chancellor of the Exchequer Philip Hammond and Justice Secretary David Gauke said on Sunday they cannot support his willingness to accept the risks of leaving the European Union on Oct. 31 without a deal. Alan Duncan, a junior foreign office minister, already resigned on Monday.

The final vote will decide who replaces Theresa May as party leader when she departs on Wednesday. The winner would still have to be confirmed in office as Prime Minister by the House of Commons. That step has been a formality for most of recent history, but may be complicated this time, given that Johnson in particular may struggle to command a majority if Hammond and others follow through with their threats of rebellion.

-- Reuters contributed to this report.

Top 5 Things to Know in the Market on Monday
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Anil Nair
Anil Nair Jul 22, 2019 6:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
rates
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email