Morning Pack
Friday 24 July 2026 · Market levels captured around 05:55–05:58 BST
Market focus: Brent remains above $100, US long-bond yields are near multi-decade highs and the Trump administration has imposed new tariffs on 60 trading partners. Asian equities are sharply lower, with Korea and Japan leading the decline.
Asia-Pacific
Linkable Headlines
- Trump imposes new 10%–12.5% tariffs on 60 trading partners over forced-labour rules
- Oil tops $100 as Trump weighs a “massive attack” on Iran
- US-Iran clashes intensify as Bahrain warns of incoming fire and shipping risks widen
- Pentagon awards Oracle a nearly $7bn software contract lasting up to 10 years
- Intel sales surge as AI data-centre demand drives its fastest growth in years
- Brent settles above $100 after Houthi attacks on Saudi tankers
- Trade partners rebuke the latest US tariff regime
- Intel’s AI-fuelled recovery gains momentum
Asia Commentary
Risk aversion dominates Asia. The KOSPI is down more than 5%, the Nikkei is almost 3% lower and losses are broad across China, Hong Kong and Australia. Rising global yields, Brent above $100 and a fresh tariff shock are weighing on equities. Japanese bond pressure remains acute: the 10-year JGB yield reached 2.810%, while the 2-year hit 1.505%, its highest in nearly three decades.
Overnight Data
Japan PMIs: manufacturing 54.7 versus 54.8 previously; services 51.9 versus 52.2; composite 53.1 versus 52.8.
South Korea GDP: Q2 growth 0.6% q/q versus 0.4% forecast; annual growth 3.7% versus 3.5% forecast.
US Cash Close
US Futures
US Treasuries
Rates watch: the 30-year yield remains above 5.17%, around its highest level since 2007, while the 10-year is above 4.70%. The move reflects a combination of oil-driven inflation fears, tariff risk and concern over the long-term supply of US government debt.
FX
Commodities
Economic Calendar — GMT
US Commentary
Thursday’s US sell-off was led by technology, with the Nasdaq down 2.15% and the VIX up more than 12%. Futures point to another soft opening, particularly for Nasdaq and small caps. Intel’s stronger outlook offers some company-specific support, but the broader tape remains dominated by oil, yields and tariffs.
Rates & FX
The Treasury curve is still under pressure, with the 10-year at 4.708% and the 30-year at 5.174%. The dollar is mixed rather than uniformly stronger: sterling is softer, while the euro is broadly steady. USD/JPY remains close to 164 despite rapidly rising Japanese yields, highlighting the market’s reluctance to expect a decisive reversal in yen weakness.
Commodities & Today’s Focus
Brent has eased slightly but remains above the critical $100 threshold. The Strait of Hormuz remains open, although continued IRGC activity, Houthi attacks and the threat of broader US action keep the risk premium elevated. Today’s macro focus is the sequence of European and US PMIs, UK retail sales and US housing data. Any upside inflation signal or evidence of resilient activity could add further pressure to long-dated bonds.
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