Wall Street Breakfast: Stocks Rise On Trade Truce Relief

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U.S.-China trade truce relief shows in stock markets futures, which indicate strong gains at the open. Nasdaq futures gain 1.7%, while the S&P futures rise 1.1% and Dow futures point to a 274-point, or 1%, advance. Stoxx Europe 600 Index rises 0.8% in morning trading. In Asia, the Nikkei 300 Index closed up 2.1% and Shanghai Composite rose 2.2%. Crude oil surged 2.6% after Russia and Saudi Arabia agreed this weekend to extend by 6-to-9 months the OPEC+ oil supply cut deal. 10-year Treasury fell, pushing yield up 2 basis points to 2.02%.

U.S.-North Korea nuclear talks on again

In a quickly arranged meeting in the demilitarized zone this weekend between President Trump and Kim Jong Un, the two leaders agreed to restart talks over denuclearization. They agreed to designate nuclear negotiating teams that will begin work over the next several weeks. New working-level talks will probably start in mid-July, U.S. Secretary of State Mike Pompeo said. But the two sides don’t have a common definition of denuclearization.

Saving Iran nuclear deal isn’t likely

After talks in Vienna on Friday with the remaining signatories of the 2015 nuclear deal – Britain, France, Germany, Russia and China – Iran’s deputy foreign minister Abbas Araghchi said he would report back to Tehran on the discussions. Though a step forward, the talks didn’t meet Iran’s expectations, he said.

Turkish lira gains as U.S. sanctions threat softens

The lira jumped 1.6% against the U.S. dollar after President Trump signaled he may reassess threats to sanction Turkey if it proceeds with a Russian missile purchase. Earlier the currency rose more than 2% against the dollar to 5.6766, pushing the dollar-lira pair below its 100-day moving average. iShares MSCI Turkey ETF (NASDAQ:TUR) jumped 3.5% in premarket trading.

Sony’s next PlayStation keeps aim on hard-core gamers

Though it’s still more than a year away, Sony’s (NYSE:SNE) next-generation PlayStation is marketing against newcomers like Google (GOOG, GOOGL) by playing up the latest features that hard-core gamers obsess over, the Wall Street Journal reports. It’s already talking up effects like “ray trading”, which shows the play of light on characters’ faces in low-light scenes. The new system will compete against Alphabet’s Stadia, Apple (NASDAQ:AAPL) Arcade, and Microsoft’s (NASDAQ:MSFT) next-generation Xbox.

Unrest continues in Hong Kong

Protestors tried to storm Hong Kong’s legislature, ramming windows as about 100 riot police warned them to stop charging or they would use force. Earlier, police beat some protesters with batons and used pepper spray to try to disperse crowds near where officials were preparing a ceremony to commemorate the city’s handover back to China from the U.K. in 1997.

Deutsche Bank board to meet July 7 on job cuts

Deutsche Bank’s (NYSE:DB) supervisory board will meet to discuss a major restructuring at the German bank that could eliminate as many as 20,000 jobs, Reuters reports, citing people with knowledge of the matter. The German lender is also considering cuts at its management board. However, the plan is fluid and many aspects of the plan are still to be decided.

Final U.S.-China trade deal no more likely, Chinese adviser says

A trade truce with the U.S. reached over the weekend makes a final trade deal no more likely, according to Zhu Ning, a Chinese academic who advises the Chinese government and central bank. He likens the dispute to conflicts in Korea or Vietnam. “It could drag on and there could be no declaration of war but the skirmishes keep going,” he said on the sidelines of the World Economic Forum in Dalian on Monday.

Today’s Markets

In Asia, Japan +2.13%. Hong Kong closed. China +2.22%. India +0.65%.
In Europe, at midday, London +1.13%. Paris +0.84%. Frankfurt +1.31%.
Futures at 6:20, Dow +1%. S&P +1.1%. Nasdaq +1.7%. Crude +2.6% to $60.01. Gold -1.5% to $1,392.20. Bitcoin -6.2% to $11,099.
Ten-year Treasury Yield +1.7bps to 2.017%.

Today’s Economic Calendar

9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending

Companies reporting earnings today »

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