ASIA: Japan lead Asia higher. Speculation is rising that the Japanese government will try to intervene in currency markets and weaken the yen. Japanese unemployment fell for the first time since January, hitting 5.2% from 5.3% in June. But… the nation’s core consumer price index dropped 1.1% year over year. Deflation persists.
Japan’s market started in the red, but rallied into the close. Asia seems to have been pulled up with it. Japanese long-term bonds weren’t happy however, with yields popping at the longer-end of the curve. See more in the focus charts below.
EUROPE: UPDATE: Is falling, but struggling to rally after UK GDP beat expectations. Is now slightly in the green.s now sligh New questions have emerged in regards to Spain’s financial position, given that a court has ruled the Spanish government’s auditing techniques as illegal. Spain’s 10-year yield has risen, though remains lower than a few weeks back.
Greece’s 10-year yield, however, yes, continues ot rise. Ireland’s yield, which jumped lately due to a downgrade from S&P, has come down a healthy 50 basis points. Germany’s long-term bond yields eased even more, and as a reminder are at historically low levels. See more in the focus charts below.
Still, the UK’s latest Q2 GDP figure beat expectations, at 1.2%, registering one of the best growth rates in years. The FTSE pared back much of its losses on the news.
MACRO: Dollar and gold trading blows, the Baltic Dry Index has given back some more.
U.S. FUTURES: Are barely in the green. Have moved further into the green. Watch for U.S. GDP at 8:30 AM ET, and consumer sentiment at 9:55 AM.
ASIA: The yen almost strengthened below 84 per US dollar, but intervention speculation seems to have sent it back a bit. It remains below 85 however.
EUROPE: Spain's 10-year yield is rising again, but let's be fair and point out that it has come down a lot lately
EUROPE: Ireland yield falls a healthy 50 basis points after the recent spike. Hopefully this downtrend takes hold
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