Market Summary
Treasuries Stabilise as Investors Question Buyback Impact: US Treasuries stabilised after two days of whipsaw trading as investors questioned whether the Treasury’s efforts to contain long-term borrowing costs through increased buybacks would provide more than a temporary reprieve. The 30-year yield held around 5.25% after falling nine basis points on Wednesday before rising six basis points the following day. Both 10-year and 30-year yields moved higher yesterday despite Treasury Secretary Scott Bessent signalling scope for larger repurchases alongside a broader fiscal plan. As bonds begin to stabilise, Nasdaq 100 futures are up 0.17% and S&P 500 futures are 0.08% higher this morning.
Yen Holds Near 159 as Inflation Keeps BOJ Hike Expectations Alive: The yen was little changed following Japanese inflation data showing annual inflation rising to 1.9%, keeping the Bank of Japan on track for another near-term rate hike. Money markets are currently pricing an 82% probability of a September hike. USDJPY continues to trade around 158.80 this morning as investors weigh the prospect of tighter Japanese monetary policy against persistent yield differentials.
Gold Extends Rally as Bitcoin Breaks Above $70,000: Gold has risen 0.79% this morning to $4,552 an ounce, putting the metal on track for a third consecutive weekly gain. Bitcoin also surpassed $70,000 for the first time in more than two months, supported by renewed optimism following President Donald Trump’s meeting with crypto industry leaders earlier in the week. Bitcoin is currently trading around $74,897, up 3.07% this morning.
Oil Rally Continues as Brent Holds Above $93: Brent crude rose 1.7% yesterday to $93.22 a barrel and remains around that level this morning. Brent has now risen for five consecutive sessions, with persistent geopolitical tensions continuing to support prices and keeping renewed inflationary pressures in focus.
Samsung Shares Rise Ahead of Shareholder Return Package: Investors remain focused on technology stocks, with Samsung Electronics shares climbing 2.8%. The company is expected to announce a shareholder return package today that could be worth as much as 110 trillion won ($80 billion), according to a person familiar with the matter. The potential announcement is providing additional support to South Korean equities and the broader technology sector.
Economic Calendar
- US Manufacturing PMI
- Canada Retail Sales
- France Flash PMI
- Germany Flash PMI
- Eurozone Flash PMI
Key Market Moves Today
- S&P 500 Futures: +0.08% (7,668.0)
- US 10-Year Yield: 0.00 bps (4.70%)
- Brent Crude: -0.42% ($93.40)
- Bitcoin: +3.07% ($74,897)
- Spot Gold: +0.79% ($4,552)
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