• Major European indices are tentative [Euro Stoxx 50 -0.1%] as participants await the today’s key event in the form of Fed Chair testimony & FOMC Minutes
• Core bonds reverse further following strong EZ data, better than expected GDP prints and a poor Bund auction
• NHC see a 90% chance of cyclone formation in the Gulf of Mexico within 48 hours, as such production platforms have begun stopping production and evacuating workers
• Looking ahead, highlights include BoC rate decision & press...

• Asian equity markets traded somewhat mixed following a similar lead from Wall St. as participants await fresh clues on Fed policy
• USTR Lighthizer and Treasury Secretary Mnuchin conducted a phone call yesterday with China Vice Premier Liu He which was said to have gone well and was constructive
• UK lawmakers voted in favour of a plan which might hinder government from suspending Parliament if it pursues a no deal Brexit
• Looking ahead, highlights include UK GDP, output & trade data, BoC rate...

• European Indices are subdued [Euro Stoxx 50 -0.5%] as a profit warning from BASF weighs heavily on the Dax (-1.1%)
• China’s Vice Foreign Minister Le Yucheng warned of ‘disastrous consequences’ if the US treats China as an enemy
• US is set to impose duties on fabricated structural steel imports from China and Mexico but will not impose duties on structural steel from Canada; Mexico state this should not impact the USMCA ratification
• Looking ahead, highlights include US JOLTS, EIA Short Term Energy...

• Asian equity markets were negative following the losses on Wall St where the majors suffered in a continued fallout from the tempered Fed rate cut expectations
• UK Chancellor Hammond told PM May he will fund her legacy spending plans if she allows Tory MPs free votes on efforts to stop a no-deal Brexit
• UK opposition Labour Party is set to declare it will campaign for remain in a second referendum on any deal put to parliament by a Tory PM
• US is set to impose duties on fabricated structural steel...

European Indices [Euro Stoxx 50 U/C] are little changed thus far, with Deutsche Bank’s restructuring capturing the equity markets focus

·  China is expected to use its plan to name foreign companies that are a national security risk, as a bargaining chip in trade talks with US, SCMP notes that US & China are no closer to a deal

·  Iran has reportedly surpassed the 3.67% uranium enrichment cap, discussions on exceeding 20% have been taken but no decision...

• MON: Germany IP; BOI; Aus NAB confidence; China social financing.
• TUE: EIA STEO; US JOLTs.
• WED: Powell testimony; FOMC mins; BOC MPR; China CPI; UK GDP, trade data, IP.
• THU: US CPI; OPEC MOMR, Sweden CPIF.
• FRI: China trade.

• Asian equity markets began the week with firm losses as the region reacted to the weakness last Friday on Wall St
• China is expected to use its plan to name foreign companies that are a national security risk, as a bargaining chip in trade talks with US
• A YouGov poll over the weekend showed UK PM candidate Boris Johnson with 74% of support vs. 26% for Jeremy Hunt
• TRY weakened more than 2% against USD after the Turkish Central Bank Governor was ousted and replaced by his deputy
• Iran is...

• A cautious end to the week so-far European Indices [Euro Stoxx 50 -0.2%] ahead of NFPs
• In FX, USD outperforms G10 counterparts as participants return from Independece Day holiday
• Looking ahead, highlights include US & Canadian Jobs Reports, Canadian Ivey PMI

ASIA-PAC

Asian equity markets were mixed following the non-existent lead from Wall Street where markets were shut due to Independence Day and with the region tentative heading into the key US Non-Farm...

• Asian equity markets were mixed heading into US NFP data, Samsung’s operating profit fell 56% Y/Y
• China reportedly wants Huawei clarification before making agricultural purchases from the US
• DXY was flat, EUR/USD contained, GBP/USD remained near YTD lows and USD/JPY traded sideways
• Looking ahead, highlights include German Industrial Orders, US & Canadian Jobs Reports, Canadian Ivey PMI, ECB's Coeure & de...

• Asian equity markets traded mostly higher, benefitting from the mild tailwinds from US, E-Mini S&P briefly topped the 3000 level
• White House Economic Adviser Kudlow said the next round of US-China face-to-face talks will take place soon
• In FX markets, the DXY was slightly softer, EUR/USD and GBP/USD were stuck below the 1.1300 and 1.2600 handles respectively
• Looking ahead, highlights include EZ Retail Sales, ECB's Lane & de Guindos,...

• European Indices [Euro Stoxx 50 +0.9%] are firmer this morning diverting from the mixed Asia-Pac performance
• HP (HP), Dell (DELL), Microsoft (MSFT) and Amazon (AMZN) are all reportedly looking at shifting substantial amounts of their production capacity out of China., Nikkei
• In FX, the DXY remains around its 200 DMA, the antipodeans outperform and Sterling lags
• Looking ahead, highlights include US ADP, Factory Orders & ISM Non-Manufacturing PMI BoE’s Haldane & Broadbent and ECB’s de Galhau,...

• Asian equity markets traded mostly subdued, Australia was led higher by gold miners
• DXY was steady whilst the mostly risk-averse tone spurred flows into safe haven JPY
• Looking ahead, highlights include EZ, UK and US Services PMI, US ADP, Factory Orders & ISM Non-Manufacturing PMI, Riksbank Rate Decision, Riksbank’s Ingves, Hansson, Floden & Ohlsson, BoE’s Cunliffe, Haldane & Broadbent and ECB’s de Galhau, supply from Germany, earlier US Independence Day...

• European indices are largely unchanged this morning [Euro Stoxx 50 U/C] as sentiment slips from yesterday’s G20 inspired gains
• US President Trump said a new round of trade talks with China have started and that he expects Chinese President Xi will move on some of the disputed issues
• US Trade Representative Office proposed increased tariffs on EU products due to EU aircraft subsidies, in which it proposed adding more tariffs to USD 4.0bln of EU goods
• Russia approves the OPEC+ output deal extension...

• Asian equity markets traded indecisive as the euphoria from the US-China trade truce began to wane, Hong Kong played catch-up
• US Trade Representative Office proposed increased tariffs on EU products due to EU aircraft subsidies, in which it proposed adding more tariffs to USD 4.0bln of EU goods
• RBA lowered the Cash Rate by 25bps to a record low 1.00% as expected, AUD/USD saw short-lived downside
• Looking ahead, highlights include German...

• European Indices [Euro Stoxx 50 +0.9%] as the weekend’s positive US-China updates, among other geopolitical developments, generated risk-on sentiment which rolled over from the Asia-Pac session
• US and China agreed to a temporary trade truce in which US will not levy new tariffs on China whilst also easing some Huawei restrictions
• US President Trump met with North Korean Leader Kim in the DMZ and became the first sitting US President to enter North Korean territory
• Russia & Saudi Arabia have...

• US and China agreed to a temporary trade truce in which US will not levy new tariffs on China whilst also easing some Huawei restrictions
• US President Trump had an impromptu meeting with North Korean Leader Kim Jong Un and agreed to resume stalled nuclear talks
• Russia and Saudi Arabia have agreed to extend the OPEC+ output deal by 6 to 9 months
• Asian equity markets began H2 with gains across the board as global sentiment was buoyed, gold...

• European Equities are just into positive territory [Euro Stoxx 50 +0.3%], with the Fed having approved all 18 banks capital plans in their Comprehensive Capital Analysis Review
• US President Trump says he will be meeting with Chinese President Xi tomorrow and thinks the meeting will be productive at a minimum; it will ultimately work out, though he did not promise a 6-month tariff reprieve
• FX and Fixed remain tentative and rangebound ahead of the weekend’s G20 and as month/quarter & half year end...

• Asian equity markets were subdued amid book squaring heading into the end of H1 and ahead of the upcoming Trump-Xi meeting at the G20
• FX price action was uneventful across the board with the DXY little changed on the session as its major counterparts sat rangebound
• UK PM candidate Boris Johnson is reportedly preparing an emergency budget for no-deal
• Fed approved all 18 banks capital plans in its Comprehensive Capital Analysis...

• China’s President Xi is reportedly to present Trump with  a set of terms required for a resolution to the trade dispute; including the lifting of all punitive tariffs
• European Indices are softer [Euro Stoxx 50 -0.2%], with sentiment somewhat dented on the ongoing US-China updates
• In FX, the DXY remains cautious and within a relatively narrow band ahead of the G20 summit while bonds were only marginally afflicted by negative trade rhetoric
• Looking ahead, highlights include German CPI (Prelim),...

• Asian equity markets traded higher after the region shrugged off the uninspiring lead from Wall Street ahead of the G20 Summit
• UK Remain rebels are reportedly planning to mount a new bid next week to block a no-deal Brexit
• In FX markets, most currencies remained in a holding pattern, although the DXY was slightly firmer overnight
• Looking ahead, highlights include German CPI (Prelim), EZ Economic Sentiment, US GDP (Final), Initial Jobless Claims, Banxico rate decision, ECB’s Nowotny, supply from...

• European indices [Euro Stoxx 50 +0.4%] were lifted from mildly negative territory by positive US-China comments
• US Treasury Secretary Mnuchin said the US-China deal is 90% complete, though there was some suggestion that these comments were delivered in the past tense
• In FX, the DXY has steadied above 96.0 post-Fed comments while the NZD leads G10 counterparts post-RBNZ
• Looking ahead highlights include, US Durable Goods, Fed’s Daly. Supply from the...

• Asian indices are somewhat subdued after Fed speakers tempered the prospect/magnitude of rate cuts
• US is reportedly considering suspending the next round of tariffs as US-China prepare for trade negotiations to resume
• RBNZ left rates unchanged but noted downside risks to employment & inflation; adding that a lower rate may be needed over time
• Looking ahead highlights include, German GfK, US Durable Goods, ECB’s Mersch, BoE’s Carney,...

• European Indices [Euro Stoxx 50 -0.3%] are somewhat subdued following the lacklusture Asia-Pac handover
• Iran Foreign Ministry spokesman Mousavi states that the US sanctions mean the permanent closure of the diplomatic channel
• AbbVie (ABBV) is looking to buy Allergan (AGN) for in excess of USD 60bln in a cash and stock deal
• Looking ahead, highlights include US Richmond Fed, ECB’s Coeure, Fed’s Williams, Bostic, Powell, Barkin, Bullard, supply from the US, earnings from FedEx and...

• Asian indices are subdued following on from the US’ imposition of sanctions on Iran
• DXY continued its recent downtrend and slipped below 96.00, leading USD/JPY beneath 107.00
• US placed strong sanctions on Iran, including the Supreme Leader; Iran’s Foreign Ministry Spokesman states that the sanctions mean the diplomatic channel is closed forever
• US Official states that the Trump-Xi meeting is likely the 2nd day of G20, but this is yet to be...

• A choppy start to a potentially pivotally week for global trade [Euro Stoxx 50 -0.4%], with Trump & Xi due to meet at the G20 summit
• US President Trump has stated that they will move ahead with additional sanctions on Iran; Iran’s Navy Commander said the downing of a US Spy drone was a ‘firm response’ and can be repeated
• In FX, the USD remains subdued with Antipodeans leading G10 gains; while the TRY has rebounded post Istanbul election re-run
• Looking ahead, highlights include NZ Trade, ECB’s...