Futures tracking US equities were higher on Monday with support from respite for Treasury securities. The S&P 500 rose 0.6%, the Nasdaq 100 was slightly higher, and the Dow added over 400 points. The US refrained from striking Iran over the weekend and oil prices pulled back. The moves drove yields to decrease across the curve as markets readjusted inflationary risks, supporting credit-sensitive equity sectors. Bank holding companies were higher, with JPMorgan, Bank of America, and Goldman Sachs gaining 1% premarket. Meanwhile, Bristol-Myers Squibb surged nearly 10% amid reports that it could be acquired by AstraZeneca. In turn, chip producers extended their volatile momentum as markets consistently reconsider their speculative exposure and overleveraged investors liquidate positions at likely discounts. Micron and Sandisk dropped over 3%, setting the pace for memory chip producers. Meanwhile, SpaceX and AMD were 1% down ahead of their earnings tomorrow.

The Japanese yen strengthened toward 155 per dollar on Monday before pulling back, bringing its gains to as much as 5% over three sessions, after the Finance Ministry confirmed it carried out coordinated yen-buying operations with the US Treasury last week following the currency's slide to 40-year lows. Japanese authorities also warned they stand ready to conduct additional coordinated interventions if needed, adding that they remain in close contact with their US counterparts. US Treasury Secretary Scott Bessent also confirmed the joint action to counter disorderly moves in the yen, while President Donald Trump previously said the US joined last week's coordinated intervention as a show of support for Japan and to help safeguard global economic stability. The yen had fallen to four-decade lows last month amid pressure from elevated energy costs, mounting fiscal concerns, and persistently wide interest rate differentials.

The S&P Global Italy Manufacturing PMI fell to 51.3 in July 2026 from 52.2 in June, missing market expectations of 52.3 and marking its lowest reading in four months. The slowdown reflected fading support from earlier stockpiling linked to the Iran conflict, as new orders declined again amid subdued demand, with firms citing geopolitical uncertainty and inflationary pressures. Export orders also fell for the first time in five months. Manufacturing output expanded at a softer pace, while longer supplier delivery times provided a positive contribution to the headline index despite reflecting ongoing supply disruptions. Backlogs of work recorded their sharpest decline of the year, and both employment and purchasing activity weakened. At the same time, input cost pressures eased, while business confidence deteriorated.

The annual inflation rate eased to 31.75% in July 2026 from 32.11% in June, slightly below market expectations of 31.8%. It marked the lowest reading since March, as price growth slowed particularly for housing and utilities (40.32% vs 45.14% in June), transport (30.83% vs 31.15%), and alcoholic beverages and tobacco (29.38% vs 34.15%). In contrast, inflation accelerated for food and non-alcoholic beverages (37.53% vs 35.45%), clothing and footwear (16.48% vs 14.18%), and furniture and household goods (22.41% vs 22.32%). Despite easing inflation, Middle East-driven energy price volatility is expected to keep the central bank cautious, given the country’s reliance on energy imports. The monetary authority suspended repo funding in March and shifted to its costlier 40% overnight rate, with economists seeing limited scope for rate cuts this year. On a monthly basis, consumer prices rose to a three-month high of 1.78% from 0.99% in June, though slightly below market forecasts of 1.83%.

Germany’s retail sales declined 1.1% month-on-month in June 2026, swinging from a marginally revised 1.2% increase in the previous month and missing market estimates for a 0.5% drop. It marked the sharpest monthly contraction since May 2025, pointing to weaker consumer spending amid persistent economic uncertainty. Food sales fell 1.4%, while non-food sales dropped 1.0%. In contrast, online and mail-order sales rose 0.4%, highlighting continued resilience in e-commerce demand. On an annual basis, retail sales slipped 0.2%, shifting from an upwardly revised 2.1% increase in May and signaling the second time of yearly decline this year.

The RatingDog China Manufacturing PMI declined to a four-month low of 50.9 in July 2026 from 51.7 in June, falling below forecasts of 51.5, as output and new orders grew more slowly. Output continued to rise, while new orders increased for the 14th consecutive month, the longest streak since 2018, supported by stronger foreign sales, which rose for the first time in three months. Meanwhile, employment increased for the second straight month, with job creation reaching its strongest level since August 2023. Delivery times lengthened for the fifth consecutive month, but the extent of the delays remained only marginal. On the price front, input price inflation eased for the third consecutive month to its weakest level since January. Meanwhile, output prices were unchanged after six consecutive months of increases. Finally, business sentiment improved, supported by expectations of stronger market demand, new product development, expanded production capacity, and increased efficiency.