Markets Remain Neutral Ahead of Tech Earnings, With Middle East Ceasefire Hopes and newTariff on focus

Financial markets remain in wait-and-see mode following a rather turbulent week. Investors continue to monitor developments in the Middle East, with the latest reports pointing to a possible new ceasefire agreement involving the United States and Iran. Meanwhile, President Trump has revived the tariff debate, this time targeting Canada, while the technology sector—which continues to underperform—is awaiting the upcoming earnings releases. Overall market sentiment remains neutral. Futures point to a positive opening for U.S. equities and a flat start for European markets.

Financial markets sentiment

Financial markets are displaying a neutral sentiment today. Intermarket analysis shows a Market Health Score of 65/100, indicating a moderately positive backdrop. Our intermarket dashboards suggest that Monday’s session was largely uneventful, as investors remained on the sidelines ahead of this week’s key earnings reports while continuing to monitor developments in the Middle East and the renewed tariff tensions initiated by Trump.

Against this backdrop, the S&P 500/VIX ratio continues to hold above its long-term moving average, while the S&P 500/NASDAQ ratio has pulled back slightly after testing resistance around its 200-day moving average. There have been few significant changes in the remaining indicators. Notably, the Dow Jones/Gold ratio has retreated from the highs reached last September.

Across asset classes, global equities are currently holding support at their medium-term moving average, while global bonds continue to trade between their 50-day and 200-day moving averages. For both asset classes, the short-term outlook remains broadly range-bound. Commodities, meanwhile, have generated a bullish crossover, with the short-term moving average crossing above the medium-term moving average.

Our Health Scores continue to indicate a neutral outlook for equities, while renewed tensions in the Middle East have provided fresh support for both the U.S. dollar and crude oil, with both moving into moderately positive territory. Fixed income and the technology sector remain the weakest areas on our Market Weather Map.

Among the most significant one-day changes, the yield on long-term U.S. Treasury securities increased by 4 points from Friday to Monday, while the Consumer Discretionary sector declined by 7 points over the same period. Also noteworthy is the acceleration in the momentum of U.S. regional banks, which gained 9 points on a weekly basis, supported in part by the first round of stronger-than-expected earnings results released yesterday.

Global Futures – Pre-Market Sentiment

Pre-Market Futures: Global futures indicate a risk-on tone, with an average gain of +0.51%. U.S. futures are up +0.56%, European futures are broadly flat (+0.00%), and Asian futures are modestly higher (+0.42%).

Macroeconomic calendar

Today’s macroeconomic calendar includes UK employment data for the three months ending in May, the UK’s June public finance figures, Germany’s July ZEW Investor Sentiment Index, and the weekly ADP employment report in the United States.

On the corporate earnings front, today’s highlights include results from Novartis, 3M, Charles Schwab, General Motors, and Halliburton.

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NOTES AND WARNINGS

Data compiled by kbmeter.com. Analysis date: 21 July 2026 - 8:01 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.