In this mornings morning call , Mark discusses the current state of the equity markets, influenced by recent US payroll numbers and political commentary from President Trump. The discussion covers the implications of economic indicators on market momentum, the political landscape's impact on economic policies, and the performance of various sectors, particularly in technology and commodities. The conversation also touches on the geopolitical dynamics surrounding the BRICS Summit and the future outlook for the US economy amidst rising debt levels.

Takeaways

Equity markets are currently positive despite underlying red flags.

Recent US payroll numbers indicate a mixed economic outlook.

Political commentary from Trump is influencing market sentiment.

Cybersecurity demand is expected to rise significantly in the coming years.

The BRICS Summit may lead to geopolitical tensions regarding currency standards.

The US dollar is facing challenges due to rising national debt.

Market momentum should not be fought against at this stage.

Corporate developments in tech and commodities are noteworthy.

The Federal Reserve's policies are under scrutiny due to political pressure.

Future economic indicators will be crucial for market direction.

Wrap of the overnight action in global markets. This morning,Mark discusses the recent Vietnam trade deal and its implications for the USeconomy, highlighting the unfavorable terms for Vietnam. The conversationtransitions into US economic indicators, particularly focusing on payroll dataand market reactions. Finally, the discussion shifts to commodity markettrends, including insights on gold, silver, and platinum, as well as theperformance of mining stocks.

Takeaways

The Vietnam trade deal sets aprecedent for future negotiations.

The terms of the Vietnam dealappear unfavorable to Vietnam.

US private payrolls fell by33,000, marking a negative trend.

The small caps are at historicallylow performance levels.

Microsoft's layoffs reflectbroader economic adjustments.

Gold and silver prices are on therise, indicating market shifts.

Platinum prices have reachedrecord highs recently.

Mining stocks are seen asundervalued in the current market.

Expect volatility in the marketsleading up to significant payroll data.

The conversation emphasizes theimportance of staying informed about economic indicators.

Mark Wraps the overnight market action for the 2nd of July

In this episode of Pre-Market Pulse, Mark discusses therecent performance of the stock market, highlighting record highs in theS&P 500 and the overall strength of various sectors. Despite geopoliticaltensions and economic uncertainties, the market has shown resilience,particularly in banking and retail. The conversation also touches on theperformance of commodities, upcoming economic

indicators, and the outlook forthe Australian market as the financial year comes to a close.

The S&P 500 closed at recordhighs despite trade war fears.

The stock market has shownresilience amid geopolitical tensions.

The Australian market is lookingat its best financial year since COVID.

Nike's return to its old businessmodel has positively impacted its stock.

The healthcare sector isexperiencing significant challenges.

Copper prices are nearing recordhighs, indicating strong demand.

The US dollar's decline is makingUS stocks more attractive to foreign investors.

Non-farm payrolls data has beenmoved to Thursday, a rare occurrence.

Conflicting signals in inflationand employment data are concerning.

Expectations are high for themarket as the financial year ends.

Mark discusses the overnight action in global markets, thecurrent state of the stock market, highlighting the optimism driven by recentcomments from the Federal Reserve. The discussion covers various sectors,including technology, commodities, and energy, with a particular focus onTesla's advancements in autonomous driving and the ongoing rally in uraniumstocks. The conversation concludes with insights into future trends in energyand technology, emphasizing the importance of AI and geopolitical factors inshaping market dynamics.

Overnight – Stocks spike higher as Trump Describes Iranianresponse as “weak”

Stocks gained solidly on Monday, despitevolatile trading, as Iran released a "very weak" response to the U.S.strikes on three Iranian nuclear sites over the weekend. Additionally, dovishinterest rate commentary from Federal Reserve Governor Michelle Bowmancontributed to the bid in stocks.

Shortly before 1 PMET, Iran launched missile attacks on the U.S. airbase in Qatar, reportedlycoordinating with Qatari officials to provide advance notice and minimizecasualties. No deaths were reported, and most of the 14 missiles wereintercepted, with only one allowed to proceed as it posed no threat. PresidentTrump characterized Iran’s response as “very weak,” thanked Iran for thewarning, and expressed hope for regional peace, while U.S. military bases inthe region remained on high alert.

Amid these heightenedtensions, Iranian sources suggested the country might consider blocking theStrait of Hormuz, a critical route for global oil shipments, though oil pricesunexpectedly plunged as fears of further escalation eased. Analysts noted thatthe recent exchange reduced uncertainty about potential U.S. retaliation,possibly providing some stability to the situation. President Trump publiclyencouraged restraint and called for peace, while also urging Israel to pursueharmony in the region.

On the economic front,Federal Reserve Governor Michelle Bowman indicated support for a July interestrate cut, citing contained inflation and the temporary impact of Trump’s tariffpolicies. Despite Middle East turmoil, oil prices fell sharply, with Brentcrude dropping 7.5% and West Texas Intermediate down 8.1%, erasing earliergains. Trump took to social media to urge both countries and companies to keepoil prices low and pressed the U.S. Department of Energy to ramp up domesticdrilling.