Euro Surge Puts Pressure on SAP Ahead of Earnings

SAP is set to report earnings today, with markets watching for how the euro’s 13% year-to-date rise—9% in Q2 alone—has affected revenue, particularly given SAP's April warning that each 1 cent euro increase cuts annual sales by €30 million. The euro was last at $1.1688, up from $1.1329 at the end of April, raising concerns for other major European exporters such as LVMH and Roche reporting later this week. Wall Street was quiet on Monday, with the S&P 500 up 0.14%, Nasdaq up 0.38%, and Dow flat, as investors continue to monitor US trade policy and uncertainty around the Federal Reserve.

Equities

The FTSE 100 rose 0.2% on Monday, supported by strong gains among mining stocks. Precious metal miners climbed 3.4% as gold prices rose, with Endeavour Mining up 4.1% and Fresnillo gaining 3.6%. Industrial miners followed closely, rising 3.1% on the back of higher iron ore and steel prices linked to China’s announcement of a major construction project in Tibet. Glencore added 3%, Anglo American gained 3.3%, Antofagasta rose 4.7%, and Rio Tinto was up 2.7%.

BP shares were steady after the company named Albert Manifold, the former CEO of CRH, as its new chairman. Media stocks fell 1.1%, with Informa down 1.7%. Defence shares dropped 1%, led by a 2% fall in BAE Systems. The FTSE 250 gained 0.5%, driven by a sharp 19.2% rise in Oxford Nanopore Technologies after it raised its half-year revenue outlook. MONY Group dropped 6.9% after reporting a fall in first-half gross margin from 68% to 66%.

In the US, the S&P 500 rose 0.14% to 6,305.60, while the Nasdaq gained 0.38% to close at 20,974.18. The Dow Jones slipped 0.04% to 44,323.07. Alphabet was among the top movers, rising 2.7% ahead of its quarterly earnings report due Wednesday. Tesla, also reporting midweek, dipped 0.35%. Apple added 0.62%, and Amazon rose 1.43%, helping lift the broader indices.

Verizon gained over 4% after raising its full-year profit forecast, marking one of the strongest performances in the S&P 500 on the day. Communication services led sector gains, up 1.9%, followed by a 0.6% rise in consumer discretionary. Overall, seven of the 11 major S&P sectors moved higher.

Looking ahead, markets are focused on upcoming earnings from major US firms and a speech from Federal Reserve Chair Jerome Powell on Tuesday, which could provide more insight into the timing of possible interest rate cuts. Meanwhile, US officials said they remain confident about reaching a trade agreement with the EU, despite rising tensions over the Trump administration’s proposed tariffs.

Forex & Commodities

The US dollar traded narrowly on Tuesday as traders waited for clarity on trade talks ahead of the 1 August tariff deadline. The dollar index edged up to 97.882, recovering slightly after falling 0.6% on Monday. The pound slipped 0.13% to $1.3474. The euro also eased, trading at $1.1689, with attention on the European Central Bank’s rate decision due Thursday, where no change is expected.

The Japanese yen gave back some gains, trading at 147.57 per dollar after rising 1% on Monday following Japan’s upper house election. Despite a poor result for Prime Minister Ishiba’s coalition, markets appeared more focused on whether Tokyo can agree a trade deal with Washington before the deadline.

Gold prices held near their highest levels in over a month, supported by the weaker dollar and falling US Treasury yields. Spot gold was flat at $3,389.98 per ounce after touching its strongest since 17 June. Silver dropped 0.5% to $38.71, and palladium fell 1.3% to $1,250.19. Platinum added 0.3% to $1,442.55.

Brent crude dropped 0.75% to $68.69 per barrel, while West Texas Intermediate fell 0.76% to $66.69. The more active WTI September contract was down 0.82% to $65.41. Oil prices were under pressure from concerns about fuel demand if tariffs between the US and EU are imposed. Fresh US sanctions on Russian oil and increased exports from Saudi Arabia have added to supply. JODI data showed Saudi exports in May reached a three-month high.