Stock indices are once again hitting all-time highs. Natural gas prices fell by more than 6%

At the end of Monday, the Dow Jones Index (US30) declined by 0.04%. The S&P 500 Index (US500) gained 0.14%. The Nasdaq Technology Index (US100) closed higher by 0.50%. The S&P 500 and Nasdaq 100 indexes closed at record highs on Monday as optimism over strong corporate earnings outweighed lingering trade tensions. Growth in mega-large tech companies, such as Alphabet, Amazon, and Meta, fueled the rally. Alphabet rose by 2.7% ahead of Wednesday’s earnings report. Verizon shares also rose by 4% after the release of a strong quarterly report, fueling hopes for continued earnings growth. So far, more than 85% of companies reporting on the S&P 500 have beaten expectations, with the large technology industry expected to provide most of the projected 6–7% earnings growth this quarter. Investor sentiment remained upbeat despite uncertainty over tariffs. Commerce Secretary Howard Lutnick again called August 1 a “hard deadline” for compliance, although negotiations could continue beyond that.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE40) rose by 0.08%, France’s CAC 40 (FR40) closed down 0.31%, Spain’s IBEX35 (ES35) added 0.30%, and the UK’s FTSE 100 (UK100) closed positive 0.23%. European stocks posted modest losses on Monday as markets continued to assess the outlook for EU trade. The US authorities maintained their threat to impose 30% tariffs on EU exports, while the EU Commission continued to negotiate lower duty rates until August 1. At the same time, the EU also signaled that aggressive retaliatory measures would follow in the absence of an agreement, risking escalation of tensions and price hikes in the bloc. Luxury giants led the session’s losses, with Hermes, LVMH, and Ferrari falling 0.5–1.6%. Meanwhile, Stellantis lost 1.5% despite reporting a loss of more than €2.3 billion in the first half of the year due to restructuring costs and US tariffs. In addition, Ryanair jumped 5.7% after reporting that its first-quarter net profit more than doubled.

WTI crude oil prices held near the 67.1 dollar per barrel mark on Monday. The focus remained on US-EU trade talks ahead of potential US tariffs on EU imports from August 1, while the EU stepped up pressure on Russia with its 18th package of sanctions. The new measures include lower price caps on Russian crude, restrictions on the supply of oil products, and a ban on a major Indian refinery using Russian crude. China has responded to EU sanctions targeting its banks and firms by vowing to protect its interests. Meanwhile, Iran will hold nuclear talks with EU countries this Friday amid threats of renewed international sanctions.

The US natural gas (XNG/USD) prices fell more than 6% to $3.34/MMBtu on Monday, reversing part of the 7% gain made last week as prices were pressured by high supply and lower demand expectations. Production reached a new record in July, averaging 107.0 billion cubic feet per day (bcf/day), surpassing the previous June high of 106.4 bcf/day. This surge in production allowed energy companies to pump 46 bcf into storage during the week ended July 11, well above both the 18 bcf added during the same week last year and the five-year average of 41 bcf. As a result, total gas inventories are now 6.2% above the seasonal norm.

Silver prices (XAG/USD) rose to $38.9 an ounce, the highest level since August 2011, as the US dollar and Treasury yields declined amid concerns about ongoing trade talks and growing expectations of a Federal Reserve rate cut. Fed spokesman Christopher Waller reiterated his support for easing rates in July, citing a weakening labor market and lower inflation risks. He also downplayed the inflationary impact of rates, calling it temporary, and stated that there are no signs of rising inflation expectations, giving the Fed room to act. Further support for silver came from China, where the Ministry of Industry pledged to stabilize growth in key sectors such as machinery, automobiles, and electrical equipment. This initiative is aimed at modernizing production and is expected to boost demand for metals.

Asian markets traded yesterday without any single dynamics. Japanese Nikkei 225 (JP225) fell by 0.21%, Chinese FTSE China A50 (CHA50) rose by 0.33%, Hong Kong Hang Seng (HK50) rose by 0.68%, and the Australian ASX 200 (AU200) yesterday showed a negative result of 1.02%.

The Reserve Bank of Australia (RBA) considered a third rate cut in four meetings, but ultimately stayed on hold, deeming such a move inconsistent with a strategy of cautious and gradual easing, minutes of the July meeting showed. A minority of the Council’s representatives supported a rate cut, citing downside risks to global economic growth and weak domestic GDP, which could lead to a faster decline in inflation than previously expected.

Hong Kong’s annualized inflation rate fell to 1.4% in June 2025 from 1.9% in the previous month, the slowest pace in three months. On a month-on-month basis, consumer prices were unchanged in June after falling 0.3% in May.

Malaysia’s annualized inflation rate for June 2025 was 1.1%, slightly below the market consensus and May’s 1.2%. This is the lowest rate since February 2021. Core inflation, which excludes volatile fresh food and administrative prices, held at 1.8% y/y for the second month, remaining at the highest level since November 2023.