US June S&P Global Services PMI (final) 51.2; prior 51.3.

Summit Place Financial Advisors says markets expect broadly solid Q2 corporate results, but investors will focus on high oil prices’ impact on costs, margins and final product prices. The firm adds inflationary pressure from rising energy costs may take months to fully transmit, leaving the Fed limited room to cut rates in the near term and likely on the sidelines.

By the morning session close, China’s main futures contracts were mixed. Container freight to Europe plunged over 5%; red dates, Shanghai silver and glass fell more than 2%; lithium carbonate slipped about 2%; live hogs, platinum and coated paper were down over 1%. On the upside, LPG rose over 2%; rapeseed oil and stainless steel (SS) gained nearly 2%; propylene, styrene (EB), soybean No.2 and plastics (including the monthly-average plastics contract) were up more than 1%.