The US election continues to dominate the news headlines. Vice President K. Harris has reportedly secured enough support to win the Democratic presidential nomination at the party convention. Expectations for higher inflation and bond yields in the medium-to-long term have eased somewhat as the odds of Trump's victory have come down from their highs.
Political unrest should subside somewhat and, at least for a while, investors will be focused on financial reporting season. Strong second-quarter financials are expected from companies, with nearly two-thirds of investors in a Bloomberg survey expecting this reporting cycle to boost the value of the S&P 500 index. Although technology and "big seven" stocks fell significantly last week, the index of the latter stocks rose more than 2 percent yesterday. Despite the expected rapid growth in profits, according to the aforementioned survey, the majority of investors have already invested significant sums of money in the positions of large US technology companies and do not plan to increase them.
The summer season in the markets continues with little financial news. Eurozone consumer confidence and US home sales data are expected today. Alphabet (Google), Tesla, Visa, Coca-Cola, Louis Vuitton will announce results today.
