Macro Wrap

The DJIA, the S&P500, and the Nasdaq Composite Index rose 0.2%, 0.7%, and 1.2% respectively. The Eurostoxx 50 rose 0.3%. The Dollar Index fell 0.6% to 98.18 and EUR-USD gained over 80 pips to 1.1660. The US 2Y yield dipped 1bp to 3.71% while the 10Y yield gained nearly 2bp to 4.23%. The German 10Y yield rose 3bp to 2.65% and the UK 10Y yield edged up 1bp to 4.53%. Brent crude oil prices fell 1.1% to USD66.89 and gold fell 0.3% to USD3,369.

President Trump imposed an additional 25% tariff on Indian exports to the US due to ongoing purchases of Russian energy. This will raise the total tariff rate in India to 50%. Trump signed an executive order setting the new tariff rate yesterday. It is set to take effect in three weeks, on 27 August. Goods that are already in transit by 27 August and arriving before 17 September will be exempt from the new tariff. Negative for OMC’s and Indian rupee

US President likely to impose secondary tariffs on several nations says secondary sanctions underway, possibly targeting China and proposes to impose 100% tariffs on imported chips into US. Sentimentally negative for global equities.

Economic Calendar – Germany Balance of Trade, BoE Interest Rate Decision, US Initial Jobless Claims, US Nonfarm Productivity.