Markets Blog
Measures of risk appetite are improving this morning amid signs of an easing in last week’s bond market tantrum, and following a brief escalation in cross-Atlantic trade tensions. Equity markets are setting up for a near-1-percent advance at the open, Treasury yields are inching lower across the long end of the curve, and the dollar is strengthening as investors brace for a heavy slate of data releases...
• Tariff news. Threats of increased US tariffs on the EU rattled nerves on Friday. US President Trump pushed out the deadline this morning.• FX trends. US growth challenges & policy uncertainty weighs on USD. AUD & NZD edge higher. AUD & NZD also outperform on the crosses.• Event Radar. RBNZ expected to cut rates (Weds). AU monthly CPI due (Weds). US PCE deflator released (Fri). Several...
Treasury markets are extending their losses this morning on worries that funding strains could reach unsustainable levels after the House of Representatives passed President Donald Trump’s broad-reaching tax-cut bill. By a 215-to-214 margin, the lower chamber passed what Trump has called his “one, big, beautiful” bill early this morning, with two Republicans and all Democrats voting against it....
The ‘Sell America’ trade is back in play this morning. The dollar is unwinding last week’s gains and is down against all of its major counterparts, US equity markets are setting up for a bruising open, and the Treasury curve is bear steepening*, with 30-year yields pushing back above the 5-percent threshold on growing concerns surrounding Washington’s fiscal trajectory. Oil prices are up on an unsubstantiated...
The dollar is retreating as optimism surrounding the weekend’s trade deal continues to diminish and US consumers show signs of exhaustion, leaving investors to contemplate longer-term risks to the American economy. Treasury yields are moving higher, equity indices are indicating a modest softening in today’s session, and most majors – excluding the Canadian and Australian dollars – are...
The dollar is extending its losses this morning, following reports that the United States and South Korea held talks on Seoul’s foreign exchange policies in early May – a development that may signal a shift in Washington’s focus from trade imbalances to currency concerns. On a trade-weighted basis, the greenback has fallen more than a full percentage point against its peers in the euro area, United...