Investment Daily: US stocks rose as tech shares rebounded
7 July 2026
Key takeaways
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US stocks and Treasuries rose.
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European stocks and government bonds edged lower.
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Asian stocks traded mixed.
Markets
US stocks rose on Monday amid a rebound in chipmaker shares. The S&P 500 closed 0.7% higher.
US Treasuries posted mild gains and the yield curve steepened slightly, with the Fed policy outlook remaining in focus. 10-year yields edged 1bp lower to 4.47%.
European stocks edged lower on Monday as investors digested a wave of corporate takeover news. The Euro Stoxx 50 fell 0.2%. The German DAX inched up 0.1%, while the French CAC 40 slipped 0.3%. In the UK, the FTSE 100 fell 0.3%.
European government bonds fell slightly. 10-year German bund yields rose 2bp to 2.95% and 10-year French bond yields edged up 1bp to 3.73%. In the UK, 10-year gilt closed at 4.79% (+1bp).
Asian stock markets traded mixed on Monday, with weakness in technology shares weighing on some regional markets as investors continued to rotate out of AI stocks. Korea’s Kospi fell 0.5% while Japan’s Nikkei 225 ended flat. Elsewhere, China’s Shanghai Composite closed little changed (-0.1%), as Hong Kong’s Hang Seng rose 1.1%. India’s Sensex gained 0.7% and ASEAN markets fared relatively well.
Crude oil prices edged lower on Monday. WTI for August delivery settled 0.2% lower at USD 68.6 per barrel.
Key Data Releases and Events
Releases yesterday
The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.
The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.
In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.
Releases due today (7 July 2026)
No major releases.
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