Headlines:
- Powell speech the main event to watch to start the week
- Treasury yields jump higher to start the week after Trump assassination attempt
- Eurozone May industrial production -0.6% vs -1.0% m/m expected
- Switzerland June producer and import prices 0.0% vs -0.3% m/m prior
- SNB total sight deposits w.e. 12 July CHF 458.9 bn vs CHF 453.4 bn prior
- Firms lower China 2024 growth forecast after softer data earlier
Markets:
- NZD lags on the day
- European equities lower; S&P 500 futures up 0.5%
- US 10-year yields up 3.9 bps to 4.225%
- Gold up 0.3% to $2,418.40
- WTI crude down 0.1% to $82.10
- Bitcoin up 2.7% to $62,460
The main story to start the week came over the weekend, that being the assassination attempt on former president Trump. The incident rebuffed the narrative of Trump winning his re-election bid and the betting odds translated somewhat to markets as well.
The dollar opened with a minor gap higher but saw that advance fade in European morning trade. Meanwhile, Treasury yields opened higher as well but are being kept in check during the session.
USD/JPY traded to a high of 158.43 in Asia but is now settling closer to 158.00 with large option expiries seen at the figure level. Likewise, EUR/USD also has large expiries pulling the pair close to 1.0900 after its opening gap lower near 1.0885.
There wasn't too much significant action in major currencies, with the dollar still looking shaky after last week's losses.
Elsewhere, European stocks are weighed lower as the EU is to meet to discuss fiscal plans. US futures gradually nudged higher though, continuing the good form in the last two weeks. S&P 500 futures are up 0.5% on the day with more bank earnings slipping in.
Coming up later, Fed chair Powell will be making an appearance so that will offer something for traders to be wary about to start the week.