Good morning! Here’s what you need to know in markets on Tuesday.
US stocks are at all-time highs. The benchmark S&P 500 index crossed the previous intraday record of 2,134.72, which it touched on May 20, 2015. Tech, industrials, and materials led gains. “With the economy averaging a little over 2% growth per year on average since the recession ended in 2009 a combination of modest growth, low interest rates and improvements in jobs, housing and autos could help keep the stock market grinding higher,” John Stoltzfus, Oppenheimer chief investment strategist, wrote in a note on Monday.
The FTSE 100 entered a bull market. European stocks opened the week strongly, with Britain’s blue-chip FTSE 100 entering a bull market on the day, up more than 20% from its recent low in February.
The index — which is now at an 11-month high — was higher by 1.4% at the close of trade on Monday at 6,682 points, and is now almost 350 points higher than it was prior to the referendum.
Dutch bonds did something never seen in their 499 year history. Dutch 10-year government bond yields dropped below zero for the first time ever on Monday, making them the latest to join the negative yield club. The Netherlands’ 10-year dipped by 0.08 percentage points to as low as -0.007%. It has fallen by about 30 basis points since the June Brexit vote.
Chinese economic growth is set to slow. China’s economic growth likely cooled to a fresh seven-year low of 6.6% in the second quarter as the industrial sector loses steam and a boost from financial services fades, according to a Reuters poll of 61 economists. Analysts expect the world’s second-largest economy to lose further momentum in the second half of the year.
Asian shares are higher. Asian stocks held firm around a two and a half month peak on Tuesday, a day after U.S. shares hit a record high thanks to a combination of upbeat U.S. data and expectations of more stimulus around the world. Around 6:45 a.m. BST (1:45 a.m. ET( MSCI’s broadest index of Asia-Pacific shares outside Japan rose slightly to hit its highest level since late April in early trade. Japan’s Nikkei jumped 2.5%.
Theresa May will become the next prime minister of the United Kingdom on Wednesday. The Home Secretary will become just the second female prime minister in the UK’s history after Margaret Thatcher.
The US Securities and Exchange Commission is investigating Tesla for a possible securities-law violation, according to the Wall Street Journal. The inquiry is reportedly in connection to Tesla’s failure to disclose a fatal crash involving one of the company’s Autopilot-equipped cars to investors.
Venezuelan President Nicolas Maduro said that Citibank planned to shut his government’s foreign currency accounts within a month. “Do you think they’re going to stop us with a financial blockade? No, gentlemen,” Maduro said in a speech.
Burberry replaced its CEO and reshuffled its top management. Marco Gobbetti, head of French brand Celine, will replace Christopher Bailey as CEO of Burberry, the company said on Monday. Burberry also hired Julie Brown from Smith and Nephew to replace Carol Fairweather as chief financial officer.
London startup Crowdmix is going into administration. The music startup that has been building a social network for music and sports fans, told staff on Monday that it will go into administration, leaving 130 jobs uncertain. Staff won’t receive their wages for June, which have been delayed up until this point. The company had been waiting to try to secure emergency funding over the weekend in order to continue operating, but that deal has seemingly fallen through.