US equities edged higher Monday in a short but quiet session ahead of the July 4 holiday, as investors looked forward to updated employment data later in the week that could factor into the Federal Reserve’s next interest rate moves. The Dow added 10 points, while the S&P 500 and the Nasdaq edged 0.1% and 0.2% higher, respectively. Shares from rate-sensitive sectors edged lower after ISM PMI data showed that US manufacturing contracted more than expected for an eighth consecutive month in June. Meantime, European shares cut earlier gains and closed flat on Monday. 

Summary for 04.07.2023 

  • Most Asian equities moved in a flat-to-low range on Tuesday as a string of weak data prints from major economies dented risk appetite, with Japanese shares falling the most as they retreated from 33-year highs. Shares in Australia and Hong Kong edged higher, while Japanese, South Korean and mainland China equities declined. 
  • European equities are seen opening flat later today while US markets will remain closed today for the Independence Day holiday. 
  • Oil prices also traded in a tight range this morning, steadying after a volatile session as markets weighed more supply cuts from Saudi Arabia and Russia against signs of worsening economic activity across the globe.  
  • Earlier today, the Reserve Bank of Australia maintained the cash rate at 4.1% during its July meeting after raising it by 25bps a month earlier. Economists were split on expectations ahead of the decision. 
  • The ISM Manufacturing PM in the US fell to 46 in June, from 46.9 in May and below forecasts of 47. The reading pointed to a faster rate of contraction in the manufacturing sector since May 2020, with companies managing outputs down as softness continues and optimism about the second half of 2023 weakened.  
  • AstraZeneca shares fell nearly 9% yesterday following reports that the company’s new lung cancer treatment may not be as effective as hoped. 
  • Meta Platforms plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site.