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Asian shares are up, the dollar is holding gains ahead of US earnings and Nasdaq Futures are up

Asian shares are up, the dollar is holding gains ahead of US earnings and Nasdaq Futures are up

The dollar gained on Tuesday, as the trade talks were still in the spotlight. This week will also see important readings for U.S. bank earnings and inflation.

Oil prices fell after U.S. president Donald Trump set a deadline of 50 days for Russia to stop the war in Ukraine or face energy sanctions. Nasdaq Futures rose after Nvidia NVDA.O announced it would resume sales of H20 chips in China.

Trump indicated he would be open to discussing tariffs following his threat at the weekend to impose 30% duty on Europe and Mexico starting August 1. Japan is trying to set up high-level discussions with the U.S. on Friday.

Rodrigo Catril, a strategist at National Australia Bank, says that the market has reacted rather benignly to the uncertainty surrounding tariffs. This makes earnings this week in the United States all the more significant for clues.

Catril, who spoke in a NAB Podcast, said that it would be interesting to hear what the companies have to say, especially in regards to the future-looking outlook.

He added, "I believe that the idea of complacency comes from the fact that we don't know how this entire thing will play out."

The Nikkei index in Japan added 0.2%, while the MSCI broadest Asia-Pacific share index outside Japan increased by 0.4%.

The EU warned that if a deal is not reached, it will take countermeasures. Trump said that he would be open to discussions with the EU and trading partners.

The Yomiuri reported that Japan's Shigeru Shiba will meet U.S. Treasury Sec. Scott Bessent on Friday in Tokyo, before the August 1 deadline for 25% tariffs to go into effect.

Ishiba will also have to deal with an election on Sunday. Polls show that his ruling coalition could lose its majority in the upper chamber to political opponents advocating expansive spending. The yield on the benchmark 10-year bond, which is the highest since October 2008, jumped to 1,595%.

Data revealed that China's economy shrank less than expected during the second quarter, a sign of its resilience in the face of U.S. Tariffs. Nvidia's CEO Jensen Huang will visit China on Wednesday. His company plans to resume the sale of its H20 artificial-intelligence chips.

The U.S. earnings period will begin Tuesday with the release of major bank's second-quarter results. According to LSEG, S&P profits will rise 5.8% over the past year. The outlook for the S&P 500 has changed dramatically since Trump's trade war began in early April, when he predicted a 10.2% increase.

Investors will also be watching for the U.S. consumer prices data for June due Tuesday and any price increases that may result from tariffs.

After reaching a three-week peak, the dollar was barely changed at 147.62yen. After four days of declines, the euro gained 0.1% at $1.1680.

U.S. crude fell 0.5% to $66.63 per barrel. Trump announced on Monday new weapons shipments to Ukraine and threatened sanctions against buyers of Russian exports until Moscow agreed to a 50-day peace agreement.

Spot silver rose 0.3% to 38.25 cents per ounce after reaching its highest level since September 2011.

Euro Stoxx futures in the pan-region were up by 0.3%. German DAX Futures were also up by 0.2%. FTSE Futures were also up 0.2%.

U.S. Nasdaq Futures rose 0.5%.

(source: Reuters)