Here are the most important news items that investors need to start their trading day:
1. Stocks look to build off last week’s rebound
A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2022.
Brendan Mcdermid | Reuters
U.S. stock futures rose before the open Monday morning, as equities markets looked to continue the momentum from last week’s positive performance. Since entering a bear market earlier this month, the S&P 500 is up about 7.5%. It’s still not clear whether markets hit a bottom after this year’s dramatic decline, however, and investors will keep a close eye on economic indicators — including a monthly reading on durable goods orders at 8:30 a.m. ET Monday and pending home sales at 10 a.m.
2. Russia is on the brink of a debt default
Russian President Vladimir Putin takes part in the opening ceremony of new healthcare facilities in several regions of Russia, via video link in Saint Petersburg, Russia June 18, 2022. Sputnik/Mikhail Metzel/Kremlin via REUTERS ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY.
Mikhail Metzel | Sputnik | Reuters
The Russian government had about $100 million in debt payments due Sunday, the conclusion of a grace period that began May 27. There were reports that bondholders didn’t receive payments, as Western nations’ sanctions have cracked down on Russia’s ability to use rubles, its sovereign currency, to make payments. This would mark Russia’s first default since 1918, the year after the Russian Revolution.
3. G-7 aiming to counter Russia and China
U.S. President Joe Biden attends the first day of the G7 leaders’ summit at Bavaria’s Schloss Elmau castle, near Garmisch-Partenkirchen, Germany, June 26, 2022.
Lukas Barth | Reuters
Leaders of the Group of Seven nations are pursuing multiple new sanctions against Russia, including a ban on imports of Russian gold, while bolstering military and humanitarian support for Ukraine. The G-7 also reportedly aims to cap purchase prices for Russian oil. Countering China remains a priority for G-7 nations, as well. On Sunday, the leaders pledged $600 billion in private and public funds over five years to finance infrastructure in developing countries as China pursues its Belt and Road initiative, which is the nation’s bid to create a new version of the ancient Silk Road trade route that connected Europe and Asia.
4. Tencent seeks to be foreign automakers’ go-to for tech in China’s EV market
BMW’s iX electric SUV in China was the first global car brand to include the automobile version of Tencent’s WeChat messaging app, according to the Chinese tech company.
Tencent, the massive Chinese internet and tech company, recently unveiled a new cloud computing product for automakers, as it pushes to become the main tech supplier in its home country’s electric vehicle market. Tencent is already working with about 40 auto brands, including Germany’s BMW and China’s Nio, according to Liu Shuquan, vice president of Tencent Intelligent Mobility. He also said his company is working with some U.S. automakers but declined to say which ones.
5. Exxon Mobil CEO cautions against an abrupt energy transition
Darren Woods, CEO, ExxonMobil
Michael Newberg | CNBC
Gas prices are already high, but they could go higher if society makes a rapid transition away from fossil fuels, according to the chief executive of oil giant Exxon Mobil. In an interview with CNBC’s David Faber, Darren Woods said the government should instead create market-based incentives to help lower emissions. President Joe Biden and his administration have criticized Exxon Mobil and other oil companies for profiting while fuel prices surge, while activists have cited Russia’s war in Ukraine, which upended the global energy supply chain, as a major reason countries should move away from oil and gas in favor of renewables. Watch the full documentary featuring Faber, “ExxonMobil at the Crossroads,” on YouTube, Peacock and CNBC.com.
— CNBC’s Sarah Min, Matt Clinch, Elliot Smith, Evelyn Cheng and Reuters contributed to this report.
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