logo
Shares steady, yen up as markets unfazed by Japanese politics

Shares steady, yen up as markets unfazed by Japanese politics

Al Etihad21-07-2025
21 July 2025 12:33
SYDNEY/LONDON (Reuters)European shares held steady and the yen firmed on Monday, as markets shrugged off the Japanese ruling coalition's defeat in upper house weekend elections and turned to focus on this week's US tech earnings and European Central Bank policy meeting.Investors were also hoping for some progress in trade talks ahead of US President Donald Trump's August 1 tariff deadline, with US Commerce Secretary Howard Lutnick still confident a deal could be reached with the European Union.There were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest. European Commission President Ursula von der Leyen will meet Xi on Thursday.The pan-European benchmark STOXX 600 index was flat, while the UK's blue-chip FTSE 100 was up 0.1%. The euro was 0.1% higher at $1.163950.Market focus was on weekend news out of Japan, where the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline looms.Ishiba vowed to stay on, which along with a market holiday, limited the reaction. The yen was 0.5% firmer at 148.065 to the dollar and up 0.3% against the euro."The loss was within the range of expectations, and actually the outlook was even more pessimistic," said Nissay Research Institute chief economist Tsuyoshi Ueno."In terms of negotiations with the US, it is easy to doubt whether a government with such a weak foundation is reliable as a negotiating partner," he added. "For the Bank of Japan, if there is political instability, it will be difficult to raise interest rates, and pressure on the yen will continue."The BOJ still has a bias to raise rates further, but markets imply little chance of a move until late October.While the Nikkei was shut, futures traded at 39,885, up on the cash close of 39,819.
MEGA CAPS KICK OFF S&P 500 futures edged 0.2% higher, while Nasdaq futures were up 0.3%. U.S. indexes are already around record highs in anticipation of more solid quarterly earnings reports.Markets are gearing up for a host of big tech company results this week, including Google owner Alphabet, Tesla and IBM."They are going to be key for sentiment because frankly there's not a lot else to drive things," said Michael Brown, senior research strategist at Pepperstone."We saw the banks deliver decent results last week, so you'd certainly be looking for the big tech names to keep up with that to reinforce the bull case (for equities)," he said.Investors also expect upbeat news for defence groups RTX , Lockheed Martin and General Dynamics. Higher government spending around the globe has seen the S&P 500 aerospace and defence sector rise 30% this year, while defence stocks in Europe have also hit record highs.In tech news, Microsoft issued an alert about "active attacks" on server software used by government agencies and businesses, urging customers to download security updates.Elsewhere, euro zone government bond yields eased ahead of euro zone PMI data and the European Central Bank meeting later this week, at which it is expected to leave rates at 2% following a string of cuts.The euro dipped 0.5% last week, moving off a recent near-four-year top of $1.1830. The dollar index was a fraction lower at 98.306.US Treasury yields fell, leaving the yield on the benchmark 10-year note down 4.5 basis points at 4.286%. Bonds got a boost late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this month.Most of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for October.Powell's reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on edge.
In commodity markets, gold firmed 0.5% to $3,365 an ounce , with all the recent action in platinum, which last week hit its highest since August 2014.
Stock Markets
Continue full coverage
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

CoinShares launches innovative zero-fee ETP for SEI token
CoinShares launches innovative zero-fee ETP for SEI token

Arabian Post

time40 minutes ago

  • Arabian Post

CoinShares launches innovative zero-fee ETP for SEI token

CoinShares has introduced an exchange-traded product designed to offer investors exposure to the SEI token, with a unique value proposition: zero management fees and staking rewards. The ETP, set to launch across multiple European markets, aims to attract both retail and institutional investors who are keen to participate in the burgeoning sector of digital assets. The SEI ETP is being heralded as a groundbreaking development within the cryptocurrency investment space, as it lowers the barriers to entry for investors looking to capitalise on the SEI token. By eliminating management fees, CoinShares has created a highly competitive product that promises higher returns for investors. Moreover, the staking rewards component adds a unique dimension to the offering, allowing investors to earn additional yield from their SEI holdings, further enhancing the attractiveness of the ETP. This launch comes at a time when cryptocurrency investment products are experiencing increasing demand across Europe. With growing interest from institutional investors, particularly in the wake of global market fluctuations and economic uncertainty, innovative financial products like the SEI ETP are gaining significant traction. The move by CoinShares is a response to this rising demand, reflecting the company's commitment to making digital asset investments more accessible and cost-effective. ADVERTISEMENT CoinShares has long been a prominent player in the digital asset investment space. Known for its strong track record in launching exchange-traded products, the company has consistently pushed the boundaries of what is possible in terms of product innovation. The SEI ETP is part of the firm's broader strategy to expand its range of offerings, catering to a diverse array of investors, including those who are new to the world of digital assets. The SEI token, the underlying asset of the new ETP, is a relatively new entrant to the cryptocurrency market. However, it has been gaining momentum due to its strong fundamentals and the innovative approach behind its creation. The staking rewards aspect is particularly appealing, as it provides investors with an additional income stream beyond the typical price appreciation of the token. Europe's regulatory environment for cryptocurrencies has played a pivotal role in enabling the successful launch of such products. With the European Union's comprehensive framework for digital assets gaining momentum, including the MiCA regulation, investors have greater confidence in the safety and legitimacy of cryptocurrency investment products. CoinShares, leveraging its expertise and reputation, is well-positioned to navigate this complex regulatory landscape, providing assurance to investors. The ETP will be listed on major European exchanges, making it easily accessible to a broad spectrum of investors. The zero-fee structure makes it highly appealing to those looking to reduce the cost of investment, while the staking rewards make it an attractive option for those seeking passive income opportunities in the digital asset space. Furthermore, the ETP is designed to cater to both institutional and retail investors, broadening its potential market reach. While the SEI ETP promises to be an attractive product for a wide range of investors, some industry experts caution that investors should remain mindful of the volatility that typically accompanies cryptocurrency markets. Although the SEI token has shown promising growth potential, like all digital assets, it is subject to significant price fluctuations. Staking rewards, while appealing, also come with their own set of risks, particularly if the underlying asset's value decreases. Despite these risks, the growing demand for innovative, low-cost cryptocurrency products remains a driving force in the market. CoinShares' zero-fee SEI ETP is expected to capture a significant share of the market, particularly as investors look for new ways to participate in the digital asset space without incurring high management fees. By offering a product that aligns with investor desires for yield and low-cost access, CoinShares has further cemented its position as a leader in the digital asset investment space.

US pharma firm Merck to cut jobs as part of $3 bn cost-saving plan
US pharma firm Merck to cut jobs as part of $3 bn cost-saving plan

Al Etihad

timean hour ago

  • Al Etihad

US pharma firm Merck to cut jobs as part of $3 bn cost-saving plan

29 July 2025 19:04 NEW YORK (AFP)US pharmaceutical firm Merck announced on Tuesday that it would reduce jobs as part of a cost-cutting plan aimed at reducing costs by $3 billion a year by 2027."The Company approved a new restructuring program, in which it expects to eliminate certain administrative, sales and R&D positions," said a company statement, slightly lowering its revenue forecast for company did not say how many posts would be affected, but added that it would continue to hire employees "into new roles across strategic growth areas of the business."The plan will see Merck reduce its "global real estate footprint," and "continue to optimise its manufacturing network."The announcement came after Washington announced on Sunday that it had signed a trade deal with the European Union that set a 15 percent tariff on most EU goods imported into the United States, including President Donald Trump has in the past threatened a 200 percent tariff on pharmaceuticals, and a US investigation into those levies is revenue reached $15.8 billion in the second quarter, down two percent year-on-year. This was above the consensus expectations by company was hit by declining sales of its HPV vaccine vaccine brought in $1.1 billion in the second quarter (down 55 percent year-on-year), hit by declining demand in China and competition from generic drugs in international markets. Conversely, sales of the cancer drug Keytruda, a heavyweight in oncology, jumped 9% to nearly $8 billion from April to the end of June.

Noatum Maritime expands global footprint with inauguration of Shanghai office
Noatum Maritime expands global footprint with inauguration of Shanghai office

Al Etihad

timean hour ago

  • Al Etihad

Noatum Maritime expands global footprint with inauguration of Shanghai office

29 July 2025 19:47 ABU DHABI (WAM) Noatum Maritime, part of AD Ports Group's Maritime & Shipping Cluster, announced the official opening of its first office in Shanghai dedicated to its agency and maritime services arm – Noatum Maritime new office contributes to the Group's international expansion strategy and capitalises on Shanghai's prominence as a major trade and logistics Maritime Services provides comprehensive solutions to charterers, owners, operators, and ship managers for all vessel and cargo types, from load to discharge, leveraging expertise gained from operating in more than 814 ports worldwide across 118 new office aims to deliver enhanced support to a growing client base, both in China and internationally, adding to an already well-established physical presence in 77 ports within 17 located in the heart of Shanghai, the new facility was officially opened during a ribbon-cutting ceremony attended by senior officials, including Mohammed Abdul Rahman Al Hawi, Under-Secretary of the UAE Ministry of Investment; Mansour AlMulla, Deputy Group CEO – ADQ; and Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports branch shares premises with Noatum Logistics' existing commercial office in Shanghai, reflecting the integrated and synergistic service offering that defines AD Ports Group's business - Maritime & Shipping Cluster, AD Ports Group, Captain Ammar Al Shaiba, said, 'Establishing a presence in Shanghai for our Noatum Maritime Services team is a significant step forward in our expansion strategy. Shanghai is a key node in the global supply chain, and our presence here enables us to work more closely with charterers and owners in the region while offering responsive, high-quality services to our global clients. As we continue to grow our network, proximity and local knowledge remain key to delivering the operational excellence that our clients expect.'The launch of Noatum Maritime Services' office in Shanghai follows AD Ports Group's recent expansion of its global network of offices, with the launch of its first international office in the Chinese capital, step further demonstrates its commitment to growth and expansion in China and broader ambitions to establish a foothold in Asia's key maritime hubs. The move expands the Group's footprint across Greater China, which is part of its growing global network of over 140 locations.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store