From Marc to Market:
Overview: The capricious nature of the US tariffs, the tone in which they were announced, while still allowing time (August 1) to negotiate is the main talk. More tariff announcements are expected today. The dollar's upside correction was cut short, and it is weaker against nearly all the world's currencies. The jump in long-end Japanese government bonds (9-15 bp) has not helped the yen, which is the only G10 currency struggling to find traction against the greenback today. Among emerging market currencies, only the Taiwan dollar and Turkish lira are a little softer.
Equities have done surprisingly well today, while bonds have been sold. Nearly all the bourses in the Asia Pacific region advanced, though not Taiwan. Malaysia and Thailand, subject to the first round of tariff announcements fell by nearly 0.5%. Europe's Stoxx 600 is little changed, and US index futures are narrowly mixed, with the S&P 500 and Nasdaq futures slightly higher. Benchmark 10-year yields are mostly 4-5 bp firmer, pushing the UK Gilt yield back to last week's high. The Reserve Bank of Australia caught the market leaning the wrong way as it stood pat. The Australian dollar is the strongest among the G10 currencies (~+0.80%) and the 10-year yield jumped eight basis points. The 10-year US Treasury yield is three basis points higher, a little above 4.41%. The 30-year yield is approaching the 5% threshold. Gold is softer but within yesterday's range and August WTI is consolidating after posting an outside up day yesterday to post a 1.4% gain. It is on the $67-handle today and sporting a softer tone....
....MUCH MORE
