Asian stocks and the US market held steady after Japanese elections resulted in a loss for the ruling coalition. Wall Street anticipates major tech company earnings. US Commerce Secretary is optimistic about trade talks with the EU before August 1 tariff deadline. Reports suggest Trump and Xi Jinping are closer to a meeting, while European Commission President will meet Xi on Thursday.

The ruling coalition’s loss in Japan’s upper house election may impact Prime Minister Ishiba’s power. USD/JPY exchange rate may rise to 151/152 range but is expected to weaken to around 140 by year-end. Bank of Japan may not raise rates until late October based on market expectations.

European stocks were flat as investors await US-EU trade deal. European basic resources rose while the automobile sector dropped. Ryanair’s net profit doubled, while Stellantis expects a net loss. Japanese yen strengthened, and the euro and pound were steady. Gold prices rose, while oil prices fell after European sanctions against Russia.

Economic calendar is quiet, but Verizon Communications reports earnings. FTSE 100 index hovers around 9000 handle with potential for a pullback. Positive earnings and trade news could drive the index higher. RSI indicates potential for further upside moves.

Read more at Investing.com: USD/JPY: Japan Election Results Add to Uncertainty as Earnings Season Continues