The futures for the S&P 500 and the Dow Jones Industrial Average were virtually unchanged.
In Asian trading, Japan’s benchmark surged and then fell back as it reopened from a holiday Monday following the ruling coalition’s loss of its upper house majority in Sunday’s election.
The Nikkei 225 shed 0.1 per cent to 39,774.92.
Analysts said the market initially climbed as investors were relieved that Prime Minister Shigeru Ishiba vowed to stay in office despite the setback. But the election’s outcome has added to political uncertainty and left his government without the heft needed to push through legislation.
A breakthrough in trade talks with the US might win Ishiba a reprieve, but so far there’s been scant sign of progress in negotiating away the threat of higher tariffs on Japan’s exports to the US beginning Aug 1.
“Relief may be fleeting. Ishiba’s claim to leadership now rests on political duct tape, and history isn’t on his side. The last three LDP leaders who lost the upper house didn’t last two months,” Stephen Innes of SPI Asset Management said in a commentary.
Elsewhere, Hong Kong’s Hang Seng rose 0.4 per cent to 25,082.78, while the Shanghai Composite index advanced 0.6 per cent to 3,581.86.
South Korea’s Kospi sank 1.3 per cent to 3,169.94, with investors concerned over the Aug 1 deadline for making a deal with US President Donald Trump or facing 25 per cent tariffs on all the country’s exports to the US Australia’s S&P/ASX 200 added 0.1 per cent to 8,677.20.
India’s Sensex gained 0.1 per cent, while In Thailand, the SET sank 1.1 per cent after the government named Vitai Ratanakorn as the new future governor of the central bank. He is viewed as likely to be less independent than the current governor, raising concerns about the bank’s independence, analysts said.
Vitai will replace Sethaput Suthiwartnarueput, when his term as governor ends in September.
Many of Trump’s stiff proposed tariffs are paused after he extended the deadline for talks to allow more time to reach potential trade deals that could lower those rates. Aug 1 is the next big deadline, at least for now.
US stock indexes inched their way to more records on Monday to kick off a week full of profit updates from big US companies.
General Motors will report its latest profit results later this week, along with such market heavyweights as Alphabet, Coca-Cola and Tesla.
The S&P 500 rose 0.1 per cent and squeaked past its prior all-time high set on Thursday. The Dow edged down less than 0.1 per cent and the Nasdaq composite added 0.4 per cent to its own record.
Verizon Communications helped lead the way and rose 4 per cent. The telecom giant reported a stronger profit and higher revenue for the latest quarter than expected and raised its forecasts for the full year.
That helped offset a 5.4 per cent drop for Sarepta Therapeutics, which continued to fall after the Food and Drug Administration said on Friday that it asked the company to voluntarily stop all shipments of Elevidys, its gene therapy for Duchenne muscular dystrophy, due to safety concerns.
Cleveland-Cliffs rallied 12.4 per cent after the steel producer reported a smaller loss for the spring than analysts expected. It’s a major supplier to the auto industry, and Trump’s tariffs steer companies hoping to sell cars in the United States toward steel made in the country.
In other dealings early Tuesday, US benchmark crude oil lost 55 cents to USD 65.40 per barrel, while Brent crude, the international standard, gave up 54 cents to USD68.67 per barrel.
The US dollar rose to 147.67 Japanese Yen from 147.38 Yen. The euro slipped to USD1.1690 from USD1.1696. (AP) RD RD
