Staff of Reuters Danilo Masoni takes a look at the day ahead in 3 minutes. PHOTO FROM THE FILE: On February 12, 2019, a bull, a sign for successful trading, is visible in front of the German stock market in Frankfurt, Germany. REUTERS/File Photo/Kai Pfaffenbach The first full week of July begins with investors feeling a little dizzy after Friday’s goldilocks U.S. jobs report allayed rate rise fears, sending global markets to fresh all-time highs. The rise follows a stunning first half, in which the S&P 500 had its second best run since 1998. However, at these uncharted levels, one might ask what or who could possibly drive stocks higher. Morgan Stanley claims that retail is now the marginal buyer, with mutual funds nearing decade-low liquidity ratios and asset allocators likely selling into strength. It is estimated that retail investors have purchased over $170 billion in US equities this year. As a result, with Wall Street closed for the Fourth of July holiday on Monday, global markets are a touch directionless, while the dollar is taking a breather after recent advances hit a snag following Friday’s U.S. jobs report. As the growing delta virus variety sparked concerns ahead of the critical summer holiday season, European futures pointed to moderate increases later today. In Asia, the Nikkei saw a spike in illnesses two weeks before the Olympics in Tokyo. In June, growth in the country’s services sector dropped drastically to a 14-month low due to a return of COVID-19 infections in southern China. In Europe, the final June PMI data will be released later. Crude prices have fallen as a result of OPEC+ tensions, which could lead to major producers pushing up volumes to gain market dominance. The group’s discussions are still going on today. In the world of business, all eyes are on Didi Global after the Chinese ride-hailing giant warned that a regulatory order to remove its app from Chinese app stores could harm revenue. A consortium of infrastructure investors presented a $16.7 billion buyout proposal for Sydney Airport, one of Australia’s largest-ever buyouts, as a symbol of promise for the transport sector. (Illustration: Morning bid: ) Important events that should give markets greater direction Monday: – China: June service growth falls to a 14-month low. – Kuroda emphasizes the BOJ’s willingness to loosen further in order to combat pandemic misery. – May industrial production in France – June final PMI for France, Germany, and the euro zone – Bank of Israel rate decision – Andrea Enria and Luis de Guindos, ECB speakers – Markets in the United States were closed on July 4th in observance of Independence Day (July 4) – Business Outlook from the Bank of Canada Danilo Masoni contributed reporting, and Dhara Ranasinghe edited the piece./n
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