Stock Market Update

Equity futures point to a higher open this morning after a losing week for stocks in which mega-cap spending plans and higher oil prices pressured the market throughout the week.

Part of this morning's strength is being attributed to some relief on the oil front, with crude oil down $6.13 (-6.8%) to $83.25 per barrel amid reports that President Trump has paused strikes against Iran, with Axios adding that Iran and Oman are discussing a new arrangement to reopen the Strait of Hormuz.

In addition to monitoring developments on the geopolitical front, investors have another busy week of earnings reports to assess, with four Magnificent Seven names on the calendar.

This week will also feature some consequential events on the macro front as investors brace for the FOMC's decision on Wednesday, followed by another inflation reading on Thursday. Last week's surge in oil prices saw a material uptick in the market's expectation for a rate hike at one of the next meetings.

In corporate news:

• The latest round of White House tariffs is likely here to stay, according to Reuters.
• Apple (AAPL 334.26, +1.24, +0.4%) is lobbying the White House to use Chinese memory chips, but Micron (MU 939.00 (+18.05, +1.9%) is against it, according to The Wall Street Journal.
• NVIDIA (NVDA 208.12, +1.28, +0.6%) is in discussions to provide a $250 billion backstop for an OpenAI data center project in Ohio, according to The Wall Street Journal.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a higher note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: +1.0%, China's Shanghai Composite: +1.2%, India's Sensex: +1.0%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +1.4%.

In news:

• Chinese chipmaker CXMT had a strong debut in Shanghai, soaring nearly 500% on its first day of public trading.
• The approval rating of Japan's Prime Minister Takaichi has fallen below 60% for the first time since she took office.
• There are some concerns about long-term debt levels and doubts that the big-boned economic plan will deliver promised results.
• The Bank of Japan is not expected to announce a rate hike later this week, but it is likely to affirm its commitment to more hikes in the coming months.
• The Monetary Authority of Singapore tightened its policy unexpectedly.

In economic data:

• China's June Industrial Profit 18.7% YTD (last 18.8%)
• Japan's June Corporate Services Price Index 3.2% yr/yr (last 3.4%). May Leading Index 116.5 (expected 116.8; last 116.1)
• Singapore's June Industrial Production -7.2% m/m (last 6.9%); 7.2% yr/yr (last 17.8%)
• Hong Kong's June trade deficit HKD52.0 bln (last deficit of HKD44.2 bln). June Imports 45.4% m/m (last 42.0%) and Exports 53.4% m/m (last 40.8%)

Major European indices trade in the green. STOXX Europe 600: +0.9%, Germany's DAX: +1.6%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +1.5%.