From Marc to Market:
Overview: The US has struck a trade deal with Japan, Indonesia, and the Philippines and Treasury Secretary Bessent has suggested the August 12 end of the US-China tariff truce will likely be extended next week. The dollar bloc leads the G10 currencies higher amid some creeping optimism, while the euro is the laggard, off about 0.20%. The yen is hovering around little changed levels in what has been a choppy session. Most emerging market currencies are firmer against the dollar. The exception is a handful of central European currencies, which appear to have been dragged lower by the heavier euro.
Equities like the developments. The Nikkei rallied 3.5% and Chinese mainland companies that trade in Hong Kong jumped 1.8%. Indonesian and Philippine equities rose more than 1%. Europe's Stoxx 600 is up about 1.2% to an eight-day high. US S&P 500 futures are almost 0.5% better, while NASDAQ futures are up marginally. Bond markets are heavy. The 10-year JGB yield rose 7 bp to almost 1.58%. Benchmark 10-year yields in Europe are up most 2-3 bp but the 10-year Gilt yield is up five. The 10-year US Treasury yield is poised to snap a five-day decline. The yield is up three basis points to 4.37% ahead of the $13 bln sale of 20-year bonds today, a tenor with which the market is not enamored. Gold is virtually flat, holding near the highs, with a three-day rally in tow. September WTI is inside yesterday's range and is straddling the $65-a-barrel level. It has not settled below there since July 1.
USD: The Dollar Index fell for the third consecutive session yesterday and for a cumulative loss of about 1.4%....
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