Stock Market News: Investors will be keeping a close watch on the US trade negotiations with countries including Japan, Canada and India, while awaiting further clarity from US Federal Reserve Chair Jerome Powell’s speech and the release of monthly auto sales data later today.
Ajit Mishra, senior vice president, research, Religare Broking attributed the previous session’s fall to profit-booking. He said, "Some profit-taking in the index is natural after a strong uptrend, but trading opportunities remain abundant on the stock-specific front."
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Top Triggers To Watch Today, July 1
US-Japan Trade Talks: US President Donald Trump is threatening to impose higher tariffs on Japanese exports to the US over what he claims is the country’s unwillingness to buy American-grown rice. Trump took to social media to criticise Japan for not buying US rice, saying it is an example of how other countries have gotten too "spoiled" in their trade deals with America.
US-India Trade Talks: The White House indicated on Monday that a trade deal with India could be announced “very soon. “We will hear about a trade deal with India very soon,” White House Press Secretary Karoline Leavitt told reporters during a briefing.
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Though Leavitt did not share a specific timeline or details, her comments make it clear that India is a priority for the Trump administration’s trade plans.
Powell’s Upcoming Speech: Federal Reserve Chair Jerome Powell is set to speak today at the European Central Bank’s Forum on Central Banking in Sintra, Portugal. Investors will be closely watching for any clues on the Fed’s next moves, particularly regarding interest rates.
A dovish tone could boost equities and pressure bond yields, while a hawkish stance may trigger market volatility.
Meanwhile, Trump has renewed his criticism of Powell in a handwritten message shared on his social media platform Truth Social. Trump has repeatedly pressured Powell to cut interest rates to help economic growth. However, the Fed has kept rates steady. In a latest development, Trump has accused Powell of acting “too late” and said his policies have cost the US “a fortune”.
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Monthly Auto Sales Numbers: Auto companies are scheduled to release their monthly sales numbers for June later today. These figures could offer insights into consumer demand and the overall health of the automotive sector.
India Manufacturing PMI: S&P Global will release India’s Manufacturing PMI for June later today. This index, based on surveys of manufacturing companies, is considered an early indicator of how the sector is performing. A number above 50 means the manufacturing industry is growing, while anything below 50 points to a slowdown.
