From Marc to Market:
Overview: The US dollar has steadied today after yesterday's shellacking that saw it fall to new multiyear lows against the euro and sterling and 10-year lows against the Swiss franc. The news stream is somewhat more supportive today, with trade deals said to be in the works, in addition to the confirmation/clarification of an agreement with China. The US got an exemption from the OECD's Pillar 2 corporate tax reform, and the onerous "revenge tax" of Section 899 of the budget proposal will be dropped. There is talk that the postponement of the so-called reciprocal tariff may be extended for the current deadline of July 9. While the greenback has steadied it has found little traction and remains largely pinned near yesterday's lows.
Equity markets have responded more favorably. Most of the markets in the Asia Pacific region advanced less by the more than 1% gain in Japanese indices. China, Hong Kong, South Korea, and Australia were exceptions. Europe's Stoxx 600 is up nearly 1%, and if today's gains are sustained, it would be the first back-to-back advance in three weeks. US index futures are up 0.2%-0.3%. Benchmark 10-year yields are firmer. The two basis point rise in the JGB put the yield at a new high for the week near 1.43%. European yields are mostly less than one basis point higher, but enough to lift the 10-year German Bund yield to a new high for the week (~2.57%). The 10-year Treasury yield is about three basis points higher at 4.27%. It is off nearly 8 bp this week. Gold has broken down to a new low for the week, near $3282. It is also a new low for the month. August WTI continues to chop inside Tuesday’s range (~$64-$67.85). It is inside yesterday's range as well (~$64.65-$66.40)....
....MUCH MORE, including discussion on today's upcoming PCE price index inflation print.
