The futures market is pointing to a relatively flat open, but after that, the market could go anywhere.
On Friday, it shook off some early weakness and closed at its high for the day, rallying in the face of numerous concerns that were cited as the basis for why the market was weak early in the session.
The inference is that the market made another bullish-minded display of things despite the perturbations surrounding the G7 Summit and a big week this week of potential market-moving developments:
- $32 billion 3-Yr Note auction and $22 billion 10-Yr note auctions today; $14 billion 30-yr bond auction on Tuesday
- President Trump's meeting in Singapore with North Korean leader Kim Jong Un on Tuesday
- CPI Report for May on Tuesday
- Expected ruling on the AT&T (T)-Time Warner (TWX) merger on Tuesday
- FOMC meeting on Wednesday
- European Central Bank meeting on Thursday
- Bank of Japan meeting on Friday
The press seems glued today to the upcoming summit in North Korea and the G7 summit President Trump left behind in Canada.
Not surprisingly, the G7 Summit didn't end on the best of notes. President Trump took exception to Prime Minster Trudeau's assertion in a post-summit press conference that Canada would proceed with retaliatory tariffs on July 1 due to the U.S. imposing steel and aluminum tariffs.
The president had left the summit early to head to North Korea, but subsequently tweeted that Mr. Trudeau's statement led him to instruct U.S. representatives to withdraw from the joint G7 communique and that the U.S. is looking at tariffs on autos flooding the U.S. market.
It was not the friendly-minded outcome everyone was hoping for, yet it was a combative exchange that most people had reason to expect.
The stock market wasn't unbowed by the G7 angst before the meeting and it hasn't come unglued after it, which suggests a relatively high tolerance still for the notion that a more pernicious trade war isn't going to break out.
Still, the little battles along the way are injurious all the same for investor sentiment, as they cast doubt on the sustainability of rally efforts.
On a different note, Italy's new finance minister relieved some pressure on the eurozone front when he said a euro exit is not on the new government's agenda and that the new government is not looking to boost growth through deficit spending.
Those acknowledgments have given a boost to the euro, Italian bonds, and Italian stocks, while also offering a measure of support to global markets based on the idea that a bothersome hot spot is cooling down.