Market Summary
Yen Strengthens on Fresh Intervention Speculation: The Japanese yen rallied sharply this morning amid speculation that authorities are prepared to intervene again in currency markets with U.S. support. Japan's Ministry of Finance confirmed it conducted a coordinated yen-buying operation with the U.S. Treasury on 31 July and said it would not hesitate to carry out further joint intervention if necessary. The move pushed USD/JPY from around 157.50 to as low as 153.30 before the pair recovered to trade near 156.40, with markets remaining alert for any further official action.
Oil Slides as US-Iran Talks Lift Risk Sentiment: Brent crude fell sharply after President Donald Trump announced that fresh U.S.-Iran negotiations will begin on Monday, raising hopes of an agreement that could reopen the Strait of Hormuz. Brent dropped as much as 7.3% this morning to its 200-day moving average at $81.55 per barrel after Trump said he had agreed to cancel a planned military strike on Iran following requests from regional allies, including Saudi Arabia, to pursue diplomacy instead. The sharp decline in oil prices helped ease inflation concerns, supporting government bonds, with the U.S. 10-year Treasury yield falling 4 basis points to 4.69% after reaching its highest level since January 2025 last week.
Asian Stocks Weaken Despite Stronger US Tech Outlook: Asian equities traded lower overnight, with South Korea's Kospi Index falling 5.4% as investors took profits following Friday's sharp rebound. Despite the weakness in Asia, sentiment toward U.S. technology stocks improved, with Nasdaq 100 futures rising 0.9% this morning, pointing to a stronger start for Wall Street.
Gold Advances as Lower Yields Offer Support: Spot gold rose 0.5% this morning to around $4,070 per ounce, benefiting from lower Treasury yields and a softer U.S. dollar as easing geopolitical tensions reduced inflation expectations while supporting demand for safe-haven assets.
Economic Calendar
- Switzerland CPI
- Turkey CPI
- Eurozone Manufacturing PMI
- Spain Manufacturing PMI
- France Manufacturing PMI
- Italy Manufacturing PMI
Key Market Moves Today
- S&P 500 Futures: +0.56% (7,561.3)
- U.S. 10-Year Treasury Yield: -3.88 bps (4.70%)
- Brent Crude: -7.45% ($83.41)
- Bitcoin: +1.05% ($62,760)
- Spot Gold: +0.51% ($4,066)
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