Macro Wrap

The DJIA fell 0.3%, the S&P500 was unchanged, and the Nasdaq Composite Index edged up 0.1% last Friday. For the week, the DJIA edged down 0.1%, while the S&P500 and the Nasdaq Composite Index rose 0.6% and 1.5% respectively, The Eurostoxx 50 fell 0.3% last Friday and dropped 0.5% last week. The Dollar Index fell 0.3% to 98.48 last Friday but gained 0.6% last week. The US 2Y yield fell 3.5bp to 3.87% last Friday and dropped 2bp last week. The 10Y yield fell 4bp to 4.42% last Friday but was little changed for the week. Brent crude oil prices fell 0.4% to USD69.28 last Friday and dropped 1.5% last week. Gold rose 0.3% to USD3,350 last Friday but fell 0.2% for the week.

Tariff news weighed on sentiment last Friday as Trump is pushing for a minimum tariff of 15% to 20% in any deal with the EU and would keep duties on the auto sector at 25% as planned. The EU is attempting to reach a trade deal with the US ahead of the 1 August deadline. Trump has threatened 30% tariff on the EU. Sentimentally negative for global Equities

US July’s preliminary University of Michigan consumer sentiment index edged higher to 61.8, largely on the back of a lift in the assessment of current conditions. Headline sentiment remains well below average. 1-year and 5-year inflation expectations both fell modestly signalling an easing of concern over the scale of tariffs. Positive for USD

Today's economic data calendar comprises US' leading index. For the week ahead, watch for the ECB bank lending survey, US' new home sales on Thursday, Germany's IFO business confidence, and US' June durable goods orders on Friday. Fed chair Powell is also speaking tomorrow.