{"id":1545651,"date":"2025-07-07T12:27:16","date_gmt":"2025-07-07T16:27:16","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1545651"},"modified":"2025-07-07T12:27:16","modified_gmt":"2025-07-07T16:27:16","slug":"futures-drop-ahead-of-july-9-tariff-deadline","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/futures-drop-ahead-of-july-9-tariff-deadline\/1545651\/","title":{"rendered":"Futures Drop Ahead Of July 9 Tariff Deadline"},"content":{"rendered":"

Futures Drop Ahead Of July 9 Tariff Deadline<\/span><\/p>\n

\n

US equity futures are weaker\u00a0with investors on edge about the potential for more tariffs from the Trump administration\u00a0as we head into the July 9 deadline which appears to have been rolled to Aug 1. As of 8:15am ET,\u00a0S&P 500 contracts declined 0.2% although well off session lows\u00a0after Treasury Secretary Bessent indicated that some countries may get a three-week\u00a0extension\u00a0to trade negotiations. Nasdaq 100 futures dipped 0.4% with small caps\u00a0underperforming but tech is being dragged by TSLA sliding 6% after Elon Musk announced he will form a new political party.\u00a0Apple (-1.0%) after phone shipments from China in May were down 9.7% Y\/Y for the tranche that includes iPhones. Semis\/Cyclicals under pressure. Trump said either a deal will be done, or a country will get a letter on Monday with 12 letters set to be sent today. Additionally, the president said late on Sunday <\/a>that Anyone aligning with BRICS “Anti-American” stance is subject to an additional 10% tariff. Oil was flat, rebounding from session lows after OPEC+ did another supply hike, this time for 548k bpd. Yield curve is twisting steeper, USD stronger, and cmdtys declining (Ags, metals). This is a light macro data week into next week\u2019s CPI and kick off to earnings season.<\/p>\n

<\/a><\/p>\n

In premarket trading, Mag7 stocks were mixed: Tesla was the biggest drag among Magnificent 7 stocks, falling 6%, as President Donald Trump slams Elon Musk\u2019s bid to form a new political party (Microsoft +0.1%, Amazon +0.09%, Meta Platforms -0.3%, Apple -0.5%, Alphabet -0.5%, Nvidia -0.7%).\u00a0<\/p>\n

Apogee Therapeutics (APGE) gains 20% after saying the Phase 2 Apex part A trial of APG777 in patients with moderate-to-severe atopic dermatitis met all primary and key secondary endpoints.
\n\tCogent Biosciences (COGT) rises 23% after announcing positive top-line results from the Summit trial of bezuclastinib in patients with non-advanced systemic mastocytosis.
\n\tCrowdStrike Holdings (CRWD) slides 1.8% in premarket trading as Piper Sandler cut the software company to neutral from overweight after it surpassed the investment bank\u2019s price target.
\n\tGoldman Sachs initiates coverage of MGM Resorts International (MGM -1.8%) with a recommendation of sell due to a volatile Las Vegas market, while Caesars Entertainment (CZR -0.5%) gets a buy rating.
\n\tGeo Group (GEO) gains 6% and CoreCivic (CXW) climbs 4% after the Senate and House of Representatives approved Donald Trump\u2019s tax and spending bill that will add billions of dollars for immigrant detention centers.
\n\tMGM Resorts International (MGM) slips 1.8% after Goldman Sachs initiates coverage of with a recommendation of sell due to a volatile Las Vegas market.
\n\tProgressive Corp. (PGR) declines 1% after Morgan Stanley cut its recommendation on the insurance company to equal-weight as competition increases.
\n\tShoals Technologies Group (SHLS) rises 4.7% after Jefferies upgraded its recommendation on the renewable energy equipment company to buy, saying President Donald Trump\u2019s tax-and-spend legislation will spur short-term activity in solar.
\n\tWNS Holdings Ltd. (WNS) soars 14% after France\u2019s Capgemini SE plans to acquire IT outsourcing company for $3.3 billion in cash.<\/p>\n

Trade tensions are back on investors\u2019 radar, with Trump pledging to impose\u00a0unilateral rates\u00a0on dozens of countries in the coming days. US officials have signaled Aug. 1 as the start date for\u00a0higher levies, while Treasury Secretary Scott Bessent indicated some countries may be offered a three-week extension.\u00a0The deadline \u201cwill create near-term uncertainty,\u201d noted\u00a0Mohit Kumar, chief European strategist at Jefferies International. \u201cBut the letters are meant as an incentive for other countries to agree to come to a deal quickly. Any dips in risky assets should be used as a buying opportunity.\u201d<\/p>\n

\u00a0<\/p>\n

The dollar rose 0.4%, putting the greenback on course for its biggest advance in three weeks on growing trade fears.\u00a0Emerging-market currencies\u00a0fell, with the South African rand sliding 1%, after US President Donald Trump warned he would\u00a0add extra tariffs\u00a0on any country that aligns with \u201cthe Anti-American policies of BRICS.\u201d<\/p>\n

European stocks gained with the Stoxx 600 climbs 0.2% with insurance, travel and financial services as the strongest-performing sectors. DAX outperforms peers, adding 0.6%.\u00a0Shell and Capgemini are the day\u2019s most notable movers, the former falling on a second-quarter update while the latter retreats after announcing it will acquire US firm WNS.\u00a0 Here are the biggest movers Monday:<\/p>\n

Swissquote\u00a0shares increase as much as 6.4%, the most since April 10, after the Swiss financial services company bought out partner PostFinance and took complete control of digital finance app Yuh
\n\tBilfinger\u00a0rises as much as 5.6% after analysts at Bankhaus Metzler raised their price target on the industrial services business to a new Street-high, arguing it has stronger pricing power than previously thought
\n\tEuropean shipping companies\u00a0are outperforming on Monday after Israel launched airstrikes on Houthi-controlled ports in Yemen, raising the prospect of higher freight rates if shippers avoid the Red Sea
\n\tShell\u00a0shares fall as much as 3.2% after the oil giant\u2019s second-quarter update pointed to a weaker performance than anticipated, which is set to hit earnings expectations, according to analysts
\n\tCapgemini\u00a0shares fall as much as 4.4% to the lowest since April 30 after the French IT firm said it will acquire business process management company WNS Holdings for $3.3b in cash
\n\tStellantis\u00a0falls as much as 3.3% as Bank of America cuts the automaker to neutral from buy, with the broker expecting to see a \u201cvery weak\u201d first-half report on July 29, as well as bad positioning in Europe
\n\tCurrys\u00a0drops as much as 7.2% after RBC downgrades to hold, saying the UK consumer-electronics retailer\u2019s valuation is \u201cmore reasonable now\u201d after strong gains for the shares since late 2023
\n\tPandora\u00a0shares fall as much as 2.3% after the Danish jeweler is downgraded to hold at HSBC, which cites a lack of short-term positive catalysts; Broker also cuts price target to DKK1,250 from DKK1,450
\n\tPantheon Resources\u00a0shares drop as much as 12% after the oil and gas producer raised cash through a placing and subscription priced at a discount to Friday\u2019s close
\n\tKrones\u00a0shares fall as much as 5.7%, the most since April, after Oddo BHF downgraded the German manufacturer of packaging and bottling machines to neutral from outperform
\n\tEuropean medical technology stocks\u00a0pare drop, with Philips reversing declines, after China hit back at the European Union\u2019s restrictions on its medical device makers. Analysts see limited impact from the curbs<\/p>\n

Earlier in the session,\u00a0Asian stocks fell as investors remained on edge ahead of the deadline for President Donald Trump\u2019s pause on reciprocal tariffs, even after the administration\u00a0hinted\u00a0at possible extensions. The\u00a0MSCI Asia Pacific Index\u00a0dropped as much as 0.8%, the most in two weeks, with TSMC and Samsung Electronics\u00a0 among the biggest drags. Benchmarks in Taiwan and Japan underperformed. Stocks dropped in Malaysia and Thailand after news that the US plans to\u00a0restrict\u00a0shipments of AI chips to these nations.\u00a0Trump\u2019s latest threat to charge an additional 10% tariff on any country aligning themselves with \u201cthe Anti-American policies of BRICS\u201d caused further uncertainty Monday. Still, investors are waiting to see what actually happens.\u00a0\u201cReactions are often short-lived, especially as he usually fails to deliver on his threats,\u201d said Vey-Sern Ling, a managing director at Union Bancaire Privee.<\/p>\n

Japan\u2019s 30-year yield surged 10 basis points to 2.96% on concerns that the outcome of this month\u2019s upper house election may result in bigger fiscal spending<\/strong>. US Treasuries were little changed, with the 10-year yield at 4.35%<\/p>\n

\u201cTreasuries are starting to find their footing a bit, but the problem is if the tariff impact on inflation comes back and the Fed needs to back-pedal, at least temporarily, I think Treasuries, unfortunately, are also a bit vulnerable,\u201d Christian Mueller-Glissman, head of asset allocation research at Goldman Sachs Group Inc., told Bloomberg TV.<\/p>\n

In FX, the dollar extends gains, outperforming most of its G-10 peers in anticipation of US\u00a0tariff letters\u00a0from today. EM currencies slump, with the South African rand and Indian rupee among the session\u2019s laggards after President Trump said any country aligning with BRICS\u2019 \u201cAnti-American policies\u201d would face an additional 10% tariff.<\/p>\n

In rates, treasuries\u00a0are mixed with the yield curve steeper after US officials signaled that trading partners will have until Aug 1 before tariffs kick in, about three weeks beyond their July 9 deadline to reach agreements. Bonds are relatively muted versus other assets, with slight outperformance seen in gilts across the curve compared to Treasuries and bunds. Front-end yields are about 1bp richer on the day with long-end tenors cheaper by ~2bp, steepening 2s10s and 5s30s spreads by 2bp-3bp. 10-year near 4.3576% is 1bp higher, <\/strong>outperforming German counterpart by 1bp and lagging UK by 1bp. Japan\u2019s 30-year yield surged 10 basis points to 2.96% on concerns that the outcome of this month\u2019s upper house election may result in bigger fiscal spending. US Treasuries were little changed, with the 10-year yield at 4.35%. Treasury auction calendar resumes Tuesday with $58 billion 3-year notes, followed by $39 billion 10-year notes and $22 billion 30-year bonds Wednesday and Thursday.<\/p>\n

In commodities,\u00a0Brent crude futures erase losses, trading up 0.3% to above $68\/bbl even after OPEC+ agreed to a bigger-than-expected production increase next month. Spot gold fell $28 to trade near $3,309\/oz.<\/p>\n

\u201cOPEC\u2019s production pivot, after years of cutting output, is a sign that they remain confident over demand,\u201d wrote Kathleen Brooks, research director at XTB. \u201cThis is good news for inflation across the world.\u201d<\/p>\n

Looking at today’s calendar, the US economic data slate is empty for Monday. Fed speaker slate also blank, with Musalem and Daly schedule later in the week<\/p>\n

Market Snapshot<\/strong><\/p>\n

S&P 500 mini -0.2%
\n\tNasdaq 100 mini -0.4%
\n\tRussell 2000 mini -0.3%
\n\tStoxx Europe 600 +0.2%
\n\tDAX +0.5%
\n\tCAC 40 little changed
\n\t10-year Treasury yield +1 basis point at 4.35%
\n\tVIX +0.4 points at 17.83
\n\tBloomberg Dollar Index +0.5% at 1196.42
\n\teuro -0.4% at $1.1727
\n\tWTI crude -0.3% at $66.8\/barrel<\/p>\n

Top Overnight News<\/strong><\/p>\n

Trump has warned that any country embracing the \u201canti-American policies\u201d of the Brics bloc of nations will face an extra 10% tariff on exports, in a new threat at the start of a pivotal week for Trump\u2019s trade war. FT
\n\tTSLA -6.7% in the pre mkt after Elon Musk said he formed a new \u201cAmerica Party\u201d and hinted it may back a presidential candidate, as well as noted that increasing the deficit from USD 2tln under Biden to USD 2.5tln is insane and will bankrupt the US. Trump derided the effort, calling it \u201cridiculous.\u201d BBG
\n\tTariffs will revert back to their April 2 rates on Aug. 1 for countries that fail to nail down new trade deals with the United States, Treasury Secretary Scott Bessent said Sunday. The announcement pushes back on the original deadline of July 9. Politico
\n\tTrump will have dinner with Benjamin Netanyahu at the White House as he seeks to put Israel and Hamas on a path toward ending the war in Gaza this week. Indirect talks between the two sides started in Qatar, the AFP reported. BBG
\n\tTrump\u2019s administration plans to restrict shipments of AI chips from the likes of Nvidia Corp. to Malaysia and Thailand, part of an effort to crack down on suspected semiconductor smuggling into China. BBG
\n\tEU-China tensions ramped up. Beijing said it will exclude EU-based companies from Chinese government procurement for certain medical devices, while France\u2019s Finance Minister urged tariff barriers to counter Chinese imports. BBG
\n\tChina is reviewing and approving applications for exports of controlled items to the U.S., as Beijing and Washington speed up the implementation of their trade framework, the Chinese commerce ministry said. American officials have informed China that they are lifting a series of restrictive trade measures, a ministry spokesperson said Friday. WSJ
\n\tJapanese real wages in May fell at the fastest pace in nearly two years as persistent inflation continued to outpace wage growth and hinder consumption-led growth in the world’s fourth-largest economy, government data showed on Monday. RTRS
\n\tGerman industrial production unexpectedly rose 1.2% in May from a month earlier, suggesting companies rushed production before potentially much higher tariffs on exports to the US. BBG<\/p>\n

Corporate News<\/strong><\/p>\n

President Donald Trump blasted Elon Musk\u2019s bid to start a new political party, intensifying a feud between former allies and deepening investors\u2019 concerns about implications for Tesla Inc. and other companies led by the world\u2019s richest man.
\n\tFrance\u2019s Capgemini SE plans to acquire IT outsourcing firm WNS Holdings Ltd. for $3.3 billion, beating rival suitors to a deal aimed at expanding its AI operations.
\n\tApple Inc. appealed a \u20ac500 million ($580 million) fine from the European Union, calling the penalty \u201cunprecedented\u201d and the regulator\u2019s required changes to its App Store as \u201cunlawful.\u201d
\n\tShell Plc said its second-quarter trading results in both gas and oil will be significantly lower than the previous three months, in an indication of how major energy companies have navigated recent market volatility.
\n\tNissan Motor Co. plans to sell about $5 billion in debt to help fund Chief Executive Officer Ivan Espinosa\u2019s turnaround of the ailing automaker, part of a broader financing initiative to keep operations on track.
\n\tBillionaire Richard Li\u2019s FWD Group Holdings Ltd. rose in its trading debut in Hong Kong after raising HK$3.5 billion ($442 million) in an initial public offering.<\/p>\n

Tariffs\/Trade<\/strong><\/p>\n

Trump said trade letters are signed and are going out on Monday addressed to 12 countries but declined to say which countries or the different tariff levels involved.\u00a0Trump later commented that they\u00a0will have a deal or letter with most nations done by July 9th and could send out 12 or 15 letters on tariffs on Monday.
\n\tTrump posted “I am pleased to announce that the UNITED STATES TARIFF Letters, and\/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th”
\n\tTrump posted “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff.\u00a0There will be no exceptions to this policy.”
\n\tBessent said Trump will send letters to trading partners notifying them if no deal is reached, they will revert to April 2nd tariff levels with the tariffs to take effect on August 1st, while Bessent added that they are close to several deals and expect to see some big announcements in the next days.\u00a0Furthermore, Bessent said\u00a0100 smaller countries will get set a tariff rate and many never even contacted the US.
\n\tRussian President Putin told BRICS through a video link that it is important to enhance cooperation at BRICS and the usage of national currencies, while he commented that the liberal globalisation model is becoming obsolete.
\n\tWhite House Economic Adviser Hassett said it is possible that some trade negotiations will push past the deadline, while he added that trade deals with the UK and Vietnam provide guidelines for additional agreements with other countries,\u00a0according to a CBS interview.
\n\tEU diplomats said on Friday that EU negotiators failed to achieve a breakthrough in US trade talks and negotiations to continue into the weekend, while EU negotiators were looking to secure a US tariff pause extension if no wider trade deal is agreed.\u00a0It was also separately reported that the\u00a0US threatened the EU with a 17% tariff on food exports,\u00a0according to FT.
\n\tJapan\u2019s tariff negotiator Akazawa held in-depth phone talks with US Commerce Secretary Lutnick on Thursday and Saturday,\u00a0according to Japan\u2019s government.
\n\tJapanese automakers are reportedly exploring all options to help reduce trade imbalances with the US, via Nikkei; one idea is Toyota Motor (7203 JT) importing cars made in the US back to Japan.
\n\tChina retaliated against the EU ban regarding public tenders for medical devices by imposing import restrictions on medical devices.\u00a0China\u2019s Finance Ministry said it is\u00a0to exclude imports of medical devices exceeding CNY 45mln from the European Union from July 6th, while imports of medical devices from non-EU countries should not contain EU-made components worth more than 50% of the contract value.
\n\tIndia and the US are likely to take the final decision on a mini trade deal in the next 24-48 hours (reported on Sunday), with an average tariff under the mini trade deal likely to be 10%,\u00a0while talks have currently only been completed on a mini-trade deal and\u00a0negotiations on a larger bilateral trade agreement will begin after July 9th,\u00a0according to CNBC-TV18.
\n\tThailand is to offer the US more trade concessions to avert a 36% tariff with Thailand\u2019s Finance Minister expected to submit the revised orders before July 9th with a proposal to boost bilateral trade volume and reduce Thailand\u2019s USD 46bln trade surplus with the US by 70% within 5 years,\u00a0according to Bloomberg.
\n\tSouth African\u00a0Trade Department spokesperson says it remains committed to a trade deal with the US; conversations are constructive and fruitful.
\n\tUS-Indonesia trade deal includes buying US soybean, corn and energy products, according to an official.
\n\tGerman government spokesperson says time is money when it comes to tariff negotiations; adds, Chancellor Merz is coordinating with EU President von der Leyen, Italy PM Meloni, and French PM Macron on tariff talks.<\/p>\n

A more detailed look at global markets courtesy of Newquawk<\/em><\/p>\n

APAC stocks were mostly subdued following a lack of bullish catalysts from over the weekend and with the region cautious ahead of upcoming key events, including central bank announcements and the July 9th tariff deadline.\u00a0<\/strong>ASX 200 marginally retreated amid weakness in miners and as gold producers suffered due to a decline in the\u00a0 precious metal, although the downside in the broader market was limited by resilience in defensives and ahead of tomorrow’s RBA announcement where the central bank is widely expected to deliver a consecutive 25bps rate cut. Nikkei 225 was pressured following softer-than-expected growth in Labour Cash Earnings which resulted in the largest decline in Japan’s real wages in almost two years, while automakers were weighed on by the ongoing US tariff threat.\u00a0Hang Seng and Shanghai Comp conformed to the uninspired mood amid trade uncertainty and frictions with China retaliating against the EU ban on public tenders for medical devices by imposing import restrictions on medical devices.<\/p>\n

Top Asian News<\/em><\/p>\n

China released a plan to expand the domestic service industry and help promote rural revitalisation.
\n\tChina signed an agreement with Brazil to strengthen cooperation in infrastructure, medicine and new energy.
\n\tUS President Trump said they pretty much have a deal on TikTok and the US will start talks with China regarding TikTok on Monday or Tuesday.\u00a0It was separately reported that\u00a0TikTok is building a new version of the app planned for the US with the existing app to eventually shut down in the US in March 2026,\u00a0according to The Information.
\n\tSouth Korea passed an expanded extra budget worth KRW 31.8tln.<\/p>\n

European bourses began the session with modest gains but overall action is choppy\/tentative as we await trade updates, Euro Stoxx 50 +0.3%;\u00a0<\/strong>awaiting Trump to send the letters to 12-15 nations today and clarity on whether the July 9th tariffs have been pushed to August 1st, as commentary indicates. Sectors are mixed and split down the middle, Energy names show the deepest pressure after OPEC+ increased oil output more than expected at its weekend meeting, sources signalling further supply increases at the upcoming August meeting; furthermore, Shell (+2.8%) trimmed production guidance for Q2 across LNG and integrated gas. Insurance names outperform, benefitting from a broker upgraded to Generali (+1.5%) while Travel & Leisure names cheer lower crude benchmarks this morning, in the first part of the session at least.\u00a0<\/p>\n

Top European News<\/em><\/p>\n

UK Chancellor Reeves has warned ministers that taxes will need to increase\u00a0after the government U-turned on its welfare bill, despite repeated pledges not to increase the taxes of working people, according to CityAM.
\n\tUK ministers are to launch a GBP 500mln scheme to help struggling families,\u00a0according to FT.
\n\tEU is to stockpile critical minerals due to war risk,\u00a0according to FT.
\n\tECB’s Centeno\u00a0says he “does not know if 25bps will do the trick”, says risks remain tilted to the downside. Current stance will remain restrictive at 2% if output does not recover, via Econostream’s X; amount and timing of further cuts is difficult to say. Big risk that the investment level will be short of projections. Article adds: a correction in EUR\/USD is likely if the economy is too weak to support appreciation; undershooting inflation is currently the main risk for the ECB and it is conceivable to cut or pause at the July meeting.
\n\tECB’s Nagel\u00a0says, on the German economy, growth at the start of the year was stronger than anticipated. “the German economy faces significant headwinds in the short term. Nevertheless, there are grounds for cautious optimism as we look to the future.”
\n\tUBS expects the ECB to cut by 25bps in its July meeting; adds, if there is a benign outcome in EU trade talks, will abandon forecast for a July cut.<\/p>\n

FX<\/strong><\/p>\n

USD\u00a0firmer vs all major peers. Strength comes despite uncertainty on the trade front as we await the tariff letters. Instead, the USD is potentially drawing support from the pro-Dollar approach the administration is taking as Trump threatened an additional 10% tariff on nations aligning themselves with “Anti-American policies of BRICS”;\u00a0DXY\u00a0at a 97.439 peak, marginally taking out last week’s 97.42 best.
\n\tAntipodeans\u00a0suffer the most given the risk tone, though specific newsflow has been light. However, this will pickup with the RBA and RBNZ rate decisions due on Tuesday and Wednesday, respectively.
\n\tJPY\u00a0hit by the USD and softer-than-expected domestic wage data which has further trimmed the odds of a BoJ hike by end-2025, now at sub-50%. USD\/JPY as high as 145.48, looking to 145.95 from June 25th.
\n\tGBP\u00a0also suffers. Pressure remains on the Pound after the PMQ-sparked sell off for UK assets last week. Since, reports suggest the Chancellor has told the Cabinet taxes will need to increase. Otherwise, UK specific news light and potentially to remain the case as the UK already has a US deal. GBP\/USD sub-1.36 to a 1.3576 base.
\n\tEUR\u00a0also hit, though not to quite the same degree as the above peers; EUR\/USD at the low-end of a 1.1723 to 1.1790 band. Single currency attentive to the imminent trade letters, as newsflow in recent days has been on the negative side. Elsewhere, a handful of ECB speakers on the wires but nothing that has fundamentally shifted the narrative.
\n\tPBoC set USD\/CNY mid-point at 7.1506 vs exp. 7.1626 (Prev. 7.1535).
\n\tPBoC surveyed financial institutions about their views on recent USD weakness, according Reuters sources; did not explicitly state the purpose of the survey but once source said they interpreted it as a sign authorities are concerned about sharp CNY appreciation<\/p>\n

Fixed Income<\/strong><\/p>\n

Generally speaking, contained two-way trade into Trump’s tariff letters.
\n\tUSTs\u00a0had a firmer start, posting gains of around five ticks though this waned alongside pressure in EGBs into\/after the European cash equity open. Since, developments have been light as we await a tariff update. Holding around the unchanged mark in a 111-05+ to 111-12+ band.
\n\tBunds\u00a0also contained at first, but then succumbed to around 10 ticks of pressure on strong German industrial data. However, this was then quickly retraced and Bunds lifted to a 130.62 peak before waning into and after the cash equity open, to a 130.19 low. No move to Sentix or ECB speakers since, but Bunds have managed to pick themselves up off worst but remain in the red.
\n\tGilts\u00a0the marginal outperformer. No tariff update expected, as the UK already has a deal. The reported honesty from the Chancellor around the need for tax increases potentially welcome by Gilts, with gains of around 25 ticks at best; however, they remain shy of Friday’s 92.79 best and markedly shy of Wednesday\u2019s pre-PMQs 93.41 peak. As a reminder, BoE Gilt ops. recommence today with a short-term offering.<\/p>\n

Commodities<\/strong><\/p>\n

Crude\u00a0began on the backfoot, with modest discrepancy in terms of performance amid the lack of settlement. Follows on from OPEC+ action at the weekend which saw a larger than expected supply increase and further bearish sources via Reuters since (outlined in detail below), updates that pushed\u00a0WTI\u00a0and\u00a0Brent\u00a0to lows of USD 65.40\/bbl and USD 67.22\/bbl.
\n\tAcross the European morning benchmarks had been gradually lifting off lows, potentially driven by a refocussing on Saudi lifting its August OSPs by more than expected and\/or a fading of some of the OPEC+ driven pressure. More recently, a modest bounce to highs of USD 67.04\/bbl and USD 68.72\/bbl has occurred, though with no clear fundamental driver behind the move.
\n\tMetals await trade updates. Despite the tepid risk tone,\u00a0XAU\u00a0is under pressure this morning hit by the USD strength. XAU down to USD 3300\/oz at worst, but is currently holding modestly off that low. A base that takes XAU back to support from the last few weeks at USD 3255\/oz and USD 3246\/oz.
\n\tBase\u00a0metals also in the red, with the tepid tone and USD strength weighing.\u00a03M LME Copper\u00a0is under pressure, drifting further from the USD 10k mark it reclaimed on July 1st, hit a three-month peak at USD 10.02k in the following session and since has been on a downward trajectory. Today, as low as USD 9.77k
\n\tOPEC+ said eight member countries agreed to raise oil output by 548k bpd in August (prev. 411k bpd increases) and will next meet on August 3rd.
\n\tOPEC+ “will likely” approve another output increase of around 550k BPD for September, according to Reuters sources; September hike will complete the return of 2.17mln BPD in voluntary output cuts. A September hike would also accommodate 300k BPD production quota rise for the UAE.
\n\tSaudi Arabia set the August Arab light crude to Asia at plus USD 2.20\/bbl vs Oman\/Dubai average, while it set the OSP to NW Europe at plus USD 4.65 vs ICE Brent and set the OSP to the US at plus USD 3.90 vs ASCI.
\n\tQatar set the August Marine Crude OSP at Oman\/Dubai plus USD 1.40\/bbl and Land Crude OSP at Oman\/Dubai plus USD 1.30.<\/p>\n

Geopolitics: Middle East<\/strong><\/p>\n

Israeli military issued an evacuation order to people at Yemen\u2019s ports of Hodeidah, Ras Isa and Al-Salif, as well as to those inside the Hodeidah power station, while it announced to carry out airstrikes in those areas due to military activities being conducted there.\u00a0Israel’s Defence Minister later confirmed military strikes on Houthi targets in Yemen’s ports of Hodeidah, Salif, Ras Isa, as well as the Ras Qatib power plant
\n\tA Liberia-flagged, Greek-owned bulk carrier was attacked 51NM off Yemen\u2019s Hodeidah, while the UKMTO later announced that all crew abandoned a ship that was attacked southwest of Yemen\u2019s Hodeidah.
\n\tIsraeli PM\u2019s office said the changes requested by Hamas to the Qatari proposal are not acceptable to Israel, while the negotiating team will depart to Qatar for Gaza talks.
\n\tIsraeli PM Netanyahu said he is determined to ensure hostages\u2019 return to Israel and remove the Hamas threat from Gaza, while he said his negotiators in ceasefire talks have clear instructions to achieve an agreement under conditions Israel has accepted.\u00a0Furthermore, Netanyahu said ahead of his White House meeting that he\u00a0believes the discussion with US President Trump can certainly help advance these results.
\n\tUS President Trump said he will discuss Iran with Israeli PM Netanyahu and noted Iran\u2019s nuclear program was set back permanently but they may restart in a different location,\u00a0while Trump also said there\u00a0could be a Gaza deal during the week ahead.
\n\tFirst session of indirect ceasefire talks between Israel and Hamas in Qatar ended inconclusively and the Israeli delegation does not have sufficient mandate to reach an agreement with Hamas as it has no real power,\u00a0according to two Palestinian officials cited by Reuters.
\n\tHamas government office rejected a US State Department accusation that Hamas was involved in an attack on Americans at a Gaza Humanitarian Foundation site on Saturday.
\n\tUK government re-established diplomatic relations with Syria.
\n\tThe second round of (Israel-Hamas) negotiations in Doha will begin this afternoon, via Al Arabiya sources. Subsequently, there is reportedly a positive atmosphere in Israel-Hamas negotiations, no breakthrough so far, according to Al Hadath.<\/p>\n

Geopolitics: Ukraine<\/strong><\/p>\n

US President Trump said they won\u2019t be sending patriot missiles to Ukraine but talked about it and noted they have to be protected, while he said Russian President Putin is worried about sanctions and understands it may be coming.
\n\tRussian military forces gained control of Sobolivka in Ukraine\u2019s Kharkiv region and Piddubne in Donetsk region.
\n\tRussian Foreign Minister says Russia does not need a temporary ceasefire, but rather a lasting peace.<\/p>\n

US Event Calendar<\/strong><\/p>\n

Nothing on the calendar<\/p>\n

DB’s Jim Reid concludes the overnight wrap<\/strong><\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 07\/07\/2025 – 08:27<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/market-recaps\/futures-drop-ahead-july-9-tariff-deadline<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Futures Drop Ahead Of July 9 Tariff Deadline US equity futures are weaker\u00a0with investors on edge about the potential for more tariffs from the Trump…<\/p>\n","protected":false},"author":0,"featured_media":1545652,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1545651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1545651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1545651"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1545651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1545652"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1545651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1545651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1545651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}