Investing.com – Here are the top five things you need to know in financial markets on Tuesday, July 2:
1. U.S. stocks simmer at record highs
After the closed yesterday at thanks to the agreement to restart U.S.-China trade talks, buying enthusiasm ran out of steam on Tuesday with U.S. futures pointing to a slightly lower open. U.S. futures pointed to a triple-digit gain in the at the open, adding to a rally in June that was its best since 1938. dipped 31 points, or 0.1%, by 5:30 AM ET (9:30 GMT), slipped 3 points, or 0.1%, while dropped 16 points, or 0.2%.
as enthusiasm ran out and additional pressure was seen from U.S. tariff threats. The pan-European edged forward just 0.1%.
with both China’s and Japan’s ending flat.
2. U.S. proposes tariffs on $4 billion worth of EU goods
The U.S. added more products from the European Union to a in a long-running trans-Atlantic aircraft subsidy dispute between Boeing (NYSE:) and Airbus. The list of $4 billion worth of EU goods includes olives, Italian cheese and Scotch whiskey.
The World Trade Organization had ruled that the EU subsidies to Airbus violate international trade rules and is expected to decide this summer on the amount of countermeasures the U.S. can impose. The U.S. claims the subsidies cause $11 billion worth of damage to the U.S. economy.
3. Oil drops ahead of production cut rubber stamp, U.S. inventories
as markets awaited the on the decision by OPEC and its allies, known as OPEC+, to extend their production cut agreement for another nine months.
With expectations for the deal to go through without a hitch, market focus will shift to weekly U.S. inventory data amid forecasts for a third straight draw in stockpiles.
The American Petroleum Institute will report its data on at 4:30 PM ET (20:30 GMT) ahead of out Wednesday.
fell 21 cents, or 0.4%, to $58.88 by 5:31 AM ET (9:31 GMT), while traded down 17 cents, or 0.3%, to $64.89.
4. Australia cuts rates to record low
The Reserve Bank of Australia cut to a record low of 1% overnight in the latest round of central bank easing that has taken hold amid fears of trade uncertainty. RBA Governor Philip Lowe explained that the move was designed to support employment and help inflation move towards the bank’s target.
In the U.S., the Federal Reserve is under similar pressure to move forward with a at its next policy decision. Although fed funds futures have fully priced in a quarter-point reduction at the July 30-31 meeting, the recent trade truce between the U.S. and China caused markets to tone down their call for a half-point cut.
5. Bitcoin falls briefly below $10,000
Bitcoin hit $9,766.2 overnight, on its fourth straight day of losses, on the Investing.com index, 30% below the 2019 high of $13,929.8 reached just six days ago.
Despite the correction, the alt coin remains well above $7,888 where a two-week rally began on June 11. Up 176% so far this year, bitcoin remains well below record highs of nearly $20,000 reached in December 2017.
was last down 8.1% on the Investing.com Index to $10,270.9 by 5:33 AM ET (9:33 GMT).