Europe stocks close slightly lower after strong first half; mining stocks up 2%

Paul Flood, head of mixed asset at Newton Investment Management, discusses the outlook for investing in various asset classes and sectors, saying there is some rotation in which sectors are popular among investors as the second half begins.

The S&P 500 opened near flat as traders kicked off the new trading month, quarter and half of year.

The S&P 500 was down just 0.1%. The Dow shed 0.2%, while the Nasdaq Composite added 0.1%.

— Alex Harring

Christoph Gleske, partner at Freshfields, discusses his outlook for capital markets in Germany as the DAX index turns 35.

Saudi Arabia will extend its voluntary 1-million-barrels-per-day oil production cut initially laid out for July into August, the country’s energy ministry said on Monday, according to the state-owned Saudi Press Agency.

This will put Riyadh’s output near 9 million barrels per day next month. Saudi Arabia first introduced the voluntary production limit after the OPEC+ ministerial meeting at the start of June, when it also agreed to stretch a separate 500,000-barrels-per-day voluntary cut announced in April until the end of 2024.

Brent oil futures with September expiry were trading at $76.35 per barrel at 10:49 a.m. London time, up 94 cents per barrel from the Friday settlement price.

— Ruxandra Iordache

Mining stocks led gains on the Stoxx 600 index with a 2% increase, buoyed by rising base metal prices and improved China sentiment.

The price of most base metals advanced in early trading, including three-month tin which was up 1.4% to $27,150 per metric ton, according to London Metal Exchange data reported by Reuters.

Three-month copper was up 0.6% to $8,365 per metric ton as investor sentiment improved, but supply and demand concerns still weigh on the market.

— Hannah Ward-Glenton

Shares of AstraZeneca were down more than 5% in morning trade after the results of a late-stage medical trial.

The results showed that an experimental precision drug slowed the progression of lung cancer, but analysts said the benefits may not be as pronounced as hoped.

Citi analysts said that the results “may not be the home run in absolute benefit that investors hoped for” but said they still expect the treatment to secure regulatory approval. The bank kept its “buy” rating on the stock.

It’s time for investors to consider getting back into one key international market, Koul, who is vice president of Asia Pacific portfolio strategy at the investment bank, told CNBC’s “Street Signs Asia” on Friday.

“The amount of interest we are seeing, especially from global investors, is off the charts,” he said.

Koul explains why it’s time, and shares the stocks to consider.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity grew at a slower rate in June, according a private survey by Caixin/S&P Global.

The country’s manufacturing purchasing managers’ index fell to 50.5 in June, down from 50.9 in May, but slightly higher than the 50.2 expected by economists polled by Reuters.

China’s National Bureau of Statistics reported last week that the country’s official manufacturing PMI was at 49.0 in June — compared with 48.8 in May.

— Lim Hui Jie, Clement Tan

Tesla over the weekend reported second-quarter vehicle production and delivery numbers that surpassed analyst expectations.

The company on Sunday said it posted 466,140 deliveries and produced a total of 479,700 vehicles.

The figures mean deliveries rose 83% year-over-year for the electric vehicle maker as it increased manufacturing capacity and production at its assembly plant in Austin, Texas.

It marks the fifth consecutive quarter that Tesla reported more vehicles produced versus deliveries.

— Samantha Subin

Enthusiasm around artificial intelligence and the potential of generative AI contributed to the market’s gain so far in 2023.

As the second half begins, and technology stocks sit well above where they started the year, some investors have begun to question where to find the next opportunities to play the booming trend.

CNBC Pro subscribers can read more on how investors who missed the boat can bet on AI in the second half here.

— Samantha Subin

European equity markets are set to open higher at the start of the new trading week, according to data by IG. Britain’s FTSE 100 is expected to rise 24.2 points higher to 7.555.4, while Germany’s DAX is seen gaining 37 points to 16,184.9. France’s CAC is forecast to uptick by 16.3 points to 7,422.9 points, and Italy’s MIB is estimated to rise 67.5 points to 28,415.0.

— Hannah Ward-Glenton