Energy Giants Exxon Mobil and Chevron Hit Record Highs on Oil Price Rally

• The FTSE 100 index surged 1.61% to reach 10,646.99, demonstrating strong bullish momentum and demand as prices hold above key moving averages. • Anton Kharitonov of Traders Union attributes the advance to technical factors, noting that the rise currently lacks supportive news to solidify long-term investor confidence.

• Aakash K Hindocha, Vice President, has issued stock buy recommendations for July 2, 2026. • The recommended stocks include REC, Oberoi Realty, and Home First Finance Company India.

• The European Commission has approved recovery fund payments for Spain, Portugal, and Belgium as part of the NextGenerationEU economic recovery initiative. • Portugal received approval for its ninth payment request totaling €2.32 billion, while Belgium was granted its fourth payment of €567 million.

• The Euro zone services sector experienced a slowing contraction in June, according to the latest Purchasing Managers' Index (PMI) data. • This shift is attributed to a sharp cooling of inflation, which has helped stabilize the sector's performance.

• The European Public Prosecutor's Office (EPPO) has launched a financial investigation into a now-defunct far-right political group within the European Union. • Rather than focusing on political ideology or debate, the probe specifically targets the group's balance sheets and the potential misuse of funds.

• The UK service sector has experienced a contraction, driven by a combination of extreme heatwaves and disruptions linked to the conflict involving Iran. • Market trends show investors are rotating away from high-performing chip stocks and shifting capital toward "old economy" companies listed on the London stock market.

• The Euro (EUR) fell nearly 0.5% to approximately 184.00 against the Japanese Yen (JPY) during Thursday's European trading session. • The decline follows a sudden surge in the Yen's value, which market analysts suspect is the result of direct intervention by Japanese authorities.

• Major US stock indexes saw mixed results on Thursday, July 2, 2026, as the S&P 500 remained largely unchanged. • Despite more than two-thirds of the stocks within the S&P 500 recording gains, the overall index was weighed down by significant drops in chip stocks and other AI-related winners.

• The Federal Open Market Committee (FOMC) is scheduled to release the minutes from its June meeting next week. • Investors are looking for clues regarding what specific economic triggers could push a divided Committee toward further monetary tightening.

• The U.S. dollar is projected to end the week with a loss following the release of soft payroll data. • Despite the decline, the dollar remains supported by hawkish signals from the Federal Reserve, including warnings from Kevin Warsh regarding the bank's commitment to a 2% inflation target.

• Shares of Apple's Asian suppliers surged following reports that the company plans to increase iPhone production. • The rally reflects investor optimism regarding higher demand and increased order volumes for components.

• Asian markets rebounded as chipmakers recovered from a recent selloff and lower oil prices boosted investor sentiment. • Key gains included Indonesia’s Jakarta Stock Exchange Composite Index, which rose 2.2%, and Hong Kong’s Hang Seng, which climbed 1.4%.