Mark highlights a quiet start to the week due to the US markets being closed for the Independence Day holiday.

The Australian market closed near record highs on Friday, while Asian markets were somewhat softer. Commodity markets showed minor movements: platinum faded, silver continued its rally toward 15-year highs, and copper experienced a slight pullback. With US markets closed, limited volatility is expected until they reopen.

Looking ahead, the focus this week is on the BRICS summit and commentary from central bank leaders, particularly the Reserve Bank of Australia (RBA). There is mounting pressure from economists and the media for further rate cuts, reflecting the market's appetite for cheap money. The RBA's decisions are seen as increasingly political, especially given the resurgence of property auction rates and Sydney's status as the world's most expensive housing market. With generational shifts in the voting demographic looming, the need for policy adjustments is becoming more urgent. The US earnings season is set to begin in earnest next week, with major banks reporting midweek, but little is expected to move markets until then

In this mornings morning call , Mark discusses the current state of the equity markets, influenced by recent US payroll numbers and political commentary from President Trump. The discussion covers the implications of economic indicators on market momentum, the political landscape's impact on economic policies, and the performance of various sectors, particularly in technology and commodities. The conversation also touches on the geopolitical dynamics surrounding the BRICS Summit and the future outlook for the US economy amidst rising debt levels.

Takeaways

Equity markets are currently positive despite underlying red flags.

Recent US payroll numbers indicate a mixed economic outlook.

Political commentary from Trump is influencing market sentiment.

Cybersecurity demand is expected to rise significantly in the coming years.

The BRICS Summit may lead to geopolitical tensions regarding currency standards.

The US dollar is facing challenges due to rising national debt.

Market momentum should not be fought against at this stage.

Corporate developments in tech and commodities are noteworthy.

The Federal Reserve's policies are under scrutiny due to political pressure.

Future economic indicators will be crucial for market direction.

Wrap of the overnight action in global markets. This morning,Mark discusses the recent Vietnam trade deal and its implications for the USeconomy, highlighting the unfavorable terms for Vietnam. The conversationtransitions into US economic indicators, particularly focusing on payroll dataand market reactions. Finally, the discussion shifts to commodity markettrends, including insights on gold, silver, and platinum, as well as theperformance of mining stocks.

Takeaways

The Vietnam trade deal sets aprecedent for future negotiations.

The terms of the Vietnam dealappear unfavorable to Vietnam.

US private payrolls fell by33,000, marking a negative trend.

The small caps are at historicallylow performance levels.

Microsoft's layoffs reflectbroader economic adjustments.

Gold and silver prices are on therise, indicating market shifts.

Platinum prices have reachedrecord highs recently.

Mining stocks are seen asundervalued in the current market.

Expect volatility in the marketsleading up to significant payroll data.

The conversation emphasizes theimportance of staying informed about economic indicators.