All eyes on the outcome of ongoing US, China trade talks

All eyes are on the U.S.-China trade talks. Investors await news of U.S.-China trade talks scheduled to take place in London, which could help ease trade tensions between the two superpowers. The S&P 500 ended slightly higher on Monday, lifted by Amazon and Alphabet, as investors monitored U.S.-China negotiations aimed at resolving a trade dispute that has rattled financial markets for much of the year. Consumer discretionary and materials stocks posted the most significant gains, while the utility and financial sectors were laggards.

Despite the choppy trading, the tech-heavy Nasdaq reached a new three-month closing high. A University of Michigan report on U.S. consumer sentiment and inflation expectations may also impact trading later in the week. While most of the major sectors ended the day showing only modest moves, semiconductor stocks moved sharply higher on the day, driving the Philadelphia Semiconductor Index up by 2 per cent to its best closing level in over three months.

Oil prices edged up on Tuesday as market participants awaited the outcome of U.S.-China talks that could pave the way for easing trade tensions and improving fuel demand. U.S. Treasury auctions of notes and bonds, once-routine auctions, have become a focus for investors as a gauge of demand, both foreign and domestic, with the July 9 deadline for the 90-day pause on reciprocal tariffs fast approaching.

Nifty continued its upward journey for the fourth consecutive session, closing at an eight-month high yesterday. By decisively breaking out from its consolidation range of 24,500 to 25,100, Nifty has re[1]entered a phase of bullish momentum. The index is now likely to extend its rise towards 25,307. On the lower side, the immediate support level has now shifted upwards to 24,800

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Source: HDFC Securities Prime Research