Investment Daily: US stocks were mixed ahead of major earnings and Fed meeting
28 July 2026
Key takeaways
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US stocks were mixed as Treasuries rose.
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European stocks and government bonds rose.
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Asian stocks rose.
Markets
US stock indices ended mixed on Monday ahead of major (tech) earnings and central bank policy decisions. The S&P 500 ended flat, as weakness in semiconductor shares drove the Nasdaq lower (-0.2%).
US Treasuries edged higher as lower oil prices eased inflation concerns ahead of the Fed policy meeting. 10-year yields fell 3bp to 4.65%.
European stocks rose on Monday, as oil prices dropped amid signs of easing tensions in the Middle East. The Euro Stoxx 50 ended flat. The German DAX gained 1.0% and the French CAC rose 0.4%. In the UK, the FTSE 100 was up 0.4%.
European government bonds rose. 10-year German bund yields fell 4bp to 3.13% and 10-year French bond yields fell 5bp to 3.92%. In the UK, 10-year gilt yields closed 3bp lower at 5.00%.
Asian stock markets rose on Monday as oil prices dropped on eased geopolitical concerns. Japan’s Nikkei 225 gained 0.5%, while Korea’s Kospi rebounded 1.0%. Elsewhere, Hong Kong’s Hang Seng and China’s Shanghai Composite rose 1.0% and 1.2%, respectively, on strength of tech shares. India’s Sensex gained 1.0%.
Crude oil prices fell sharply on Monday. WTI for September delivery settled 7.5% lower at USD82.6 a 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 (28 July 2026)
US Conference Board consumer confidence index may edge higher. The labour market component will be closely watched.
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