BNZ Markets Today
The main news is that there is no news. The market has been anticipating a deal to reopen the Strait of Hormuz but, about a week after the “within the next day or two” timeframe, there is still no agreement and there may never be one. The demands Iran outlined over the weekend as conditions for allowing the safe passage of shipping through the strait — including the withdrawal of US military forces, the end of all sanctions, and payment of war reparations — are a non-starter for any US agreement.
BNZ Markets Today
An unexpected slowdown in the US labour market saw investors trim Fed rate hike expectations and supported risk sentiment. US equities made further gains, with the S&P closing 0.6% higher and extending last week’s advance to more than 3%. Investors also welcomed reports that the US will lift its blockade of Iranian ports once a deal to restore shipping is announced. That news saw oil prices ease from session highs, with Brent crude closing near US$82 per barrel. Global bond yields fell, the US dollar weakened broadly, and gold prices extended recent gains.
BNZ Markets Today
Oil prices rose steadily overnight on Middle East headlines, pushing US Treasury yields higher, while currency moves were mostly contained apart from further yen weakness. Equity markets show small movements.
BNZ Markets Today
US equity markets took a breather after solid gains in recent sessions. The S&P was little changed, albeit after an initial advance pushed the index to a fresh intraday high. Global rates markets were broadly stable, with Treasuries looking past data showing steady expansion in the services sector. The US dollar eased, though moves were contained. Gold prices rose more than 4% to US$4,250 per troy ounce, marking a notable breakout after being confined to a narrow range through July.
BNZ Markets Today
Improved prospects for de-escalation in the Middle East have driven oil prices lower, supported global rates markets, and added fresh momentum to already buoyant equity markets. The NZD shows a modest gain to 0.5890.
BNZ Markets Today
The new week began with oil prices plunging on hopes of some form of resolution in the Middle East, while yen volatility continued in the wake of official joint US-Japan intervention late last week. Lower oil prices have eased pressure on the bond market and contributed to positive equity market gains. The USD is broadly stronger overnight.
BNZ Markets Today
US equities ended July on a positive but volatile note, with the S&P closing 0.7% higher after large intraday swings. Global bond yields rose, led by further weakness at the long end of the US Treasury curve extending the move from after the FOMC. The yen remained in focus amid increased coordination between Japanese and US authorities to provide support, while the NZD reached its highest level in several weeks. Brent crude rebounded above US$90 per barrel. Over the weekend President Trump said he held off delivering new strikes against Iran while discussions are underway about reopening the Strait of Hormuz.
BNZ Markets Today
It has been an eventful 24 hours, with more bombing in the Middle East, further fallout from yesterday’s Fed policy update, a dovish policy update from the Bank of England, suspected FX intervention by the BoJ, some top-tier global economic releases, and a rotation back into semiconductor stocks. The net result has been strong equity market gains ahead of month-end, further US yield curve steepening, lower UK rates, and a broadly weaker USD.
BNZ Markets Today
Risk-sensitive assets came under pressure ahead of this morning’s US Federal Reserve rate decision. Renewed Middle East tensions lifted oil prices and bond yields across Europe and the US, with 10-year Treasuries moving back towards 4.65%. The geopolitical developments weighed on investor sentiment, with the S&P down more than 0.5% before the Fed announcement amid further weakness in chipmakers. Recent anxiety around the AI trade will face another test today, with Meta and Microsoft due to report earnings. Currency markets were broadly stable.
BNZ Markets Today
Oil prices have fallen sharply for a third consecutive day, about 5%, taking Brent crude to USD84 and the week-to-date fall to around 14%. The decline reflects hopes that the cessation of military action between the US and Iran can hold and ultimately allow shipping traffic through the Strait of Hormuz to return to normal. This week’s fall in oil prices unwinds about half of the rise seen through July.
BNZ Markets Today
Oil prices have fallen sharply to begin the week after the Trump administration paused plans to escalate strikes against Iran. The pause eased concerns over potential disruption to Middle East energy supplies and initially supported risk appetite. US equity-index futures gained in Asian trading, although the advance faded overnight, leaving the S&P 500 close to flat in afternoon US trade as chip stocks weighed on the index. Bond yields declined, while an initial fall in the US dollar was later pared.
BNZ Markets Today
On Friday, President Trump announced a fresh round of tariffs, with the expiring 10% country-specific tariff rates replaced by 10% or 12.5% rates under a different act, as he tiptoes around various laws. NZ’s tariff rate rises to 12.5% and will continue to exclude beef and kiwifruit. Cue another round of legal challenges, but for now all and sundry will have to swallow the new tariffs. Late in NY trading, Trump threatened to hit the EU with more tariffs following the “robbing” of American tech companies after the EU imposed fines for breaching the bloc’s digital rules.
BNZ Markets Today
Risk sentiment is weaker amid escalating tensions in the Middle East, which are driving inflation fears, pushing bond yields higher, weighing on equity markets, and supporting the USD. Concerns about the scale of capex in the AI sector have added to the drag on US equities.
BNZ Markets Today
The latest US bombing campaign against Iran entered an eleventh day, with strikes extending to a new area in the north-west of the country. Iran continues to retaliate with attacks against US allies in the Gulf region. Brent crude has risen on seven of the past eight days, reaching a high of almost USD95.50 last night, and is currently trading near USD94. After Iran’s interior minister visited Pakistan, a spokesman said, “There are no negotiations — it’s only possible for there to be an exchange of messages.”
BNZ Markets Today
Oil prices rose overnight, taking Brent crude above USD91 per barrel, up 2% on the day as the US-Iran conflict continues. The Strait of Hormuz is effectively closed to shipping, with vessels attempting to traverse it being attacked by Iranian drones and missiles. Threats by the Houthis to blockade the strait through the Red Sea have already prompted some tankers to turn around. President Trump downplayed the prospect of any imminent return to peace talks with Iran, saying, “they want to desperately meet and until they’re ready to meet in a meaningful way we have no interest”. Iran dismissed claims that it is seeking further talks.
BNZ Markets Today
Following the escalation in tensions between the US and Iran over the weekend, oil prices opened the new week significantly higher, with Brent crude rising to a six-week high above USD91 per barrel. Overnight, both positive and negative headlines contributed to oil price volatility. On the positive side, a spokesman for Iran’s foreign ministry said that ideas from some mediators had been conveyed, while the country’s interior minister would travel to Pakistan on Monday. Furthermore, media reports suggested that one proposal from Qatar was for a 10-day ceasefire to explore ways to revive the Memorandum of Understanding.
BNZ Markets Today
Rates and currency markets showed well contained price movements to end last week, with more notable price action in oil markets and US equities.
US and Iran tit-for-tat military attacks increased in scale and scope through the week and that continued over the weekend. This included US targeting southern Iranian cities as part of its attacks on logistics infrastructure, while Iran was spreading it attacks across multiple gulf nations, with strikes of water desalination and electricity plants in Kuwait, for example. Over the weekend, tensions have increased further, with US military deaths and injuries after Iran targeted a US base in Jordan. The NY Times reported the US was sending more warplanes to the Middle East, a signal of future US escalation in aerial attacks.
BNZ Markets Today
Market movements have been modest, with a lack of catalysts to drive significant moves. US equities are showing modest falls, US Treasury yields are a little higher, and the USD is moderately stronger.
BNZ Markets Today
The US attacked Iran for a fifth straight day, targeting military assets near the Strait of Hormuz, after Trump said the bombing campaign would continue. With no significant fresh developments, oil prices have settled, with traders not drawn in by the FT’s lead article warning of a fresh crude supply crunch. Brent crude is flat at around USD85 per barrel.
BNZ Markets Today
• Surprise, surprise, Trump backs down on his plan for a 20% levy on cargo traversing the Strait of Hormuz; oil prices pare earlier gains
• US CPI for June much softer than expected; core inflation flat
• Fed Chair Warsh maintains hawkish tone in testimony in front of lawmakers with "resolute commitment to restoring price stability"
• Soft CPI drives down US rates and USD, before some fading after Warsh speaks
• NZD well supported after run of data and more hawkish RBNZ stance; NZD/USD above 0.58 and NZD gains on crosses
• NZ short-end swap rates reach a fresh high for the year
During NZ trading hours, the US and Iran exchanged missile fire, with the US targeting military assets near the Strait of Hormuz and Iran targeting the US base in Bahrain. Overnight, President Trump unsurprisingly backed down from his plan to charge a 20% levy on cargo traversing the Strait of Hormuz, a policy that lasted less than 24 hours. This followed pushback from Gulf nation allies, with Trump instead claiming these nations would make trade and investment deals with the US.
BNZ Markets Today
The escalation of tensions between the US and Iran late last week, over the weekend, and during the NZ trading session set the tone for markets at the start of the new week. From the US perspective, the objective of the latest military action was to degrade Iran’s ability to attack ships transiting the Strait of Hormuz. From Iran’s perspective, the aim was to show it still had leverage in negotiations and wanted to maintain control of the Strait.
BNZ Markets Today
Market reaction to the escalation in Middle East tensions remained well contained at the end of last week. While NZ was on holiday, the US struck military targets and some infrastructure in Iran, while Iran fired drones and missiles towards several countries across various gulf nations. Military action continued through the weekend. Iran says the Strait of Hormuz is closed while the US position is that it remains opens. Traffic through the Strait has been brought to a standstill. That’s the state of play this morning, which investors will need to consider as trading for the new week begins.
BNZ Markets Today
A renewed flare-up in US-Iran tensions weighed on equity markets and pushed global bond yields higher, as oil prices jumped after President Trump said the ceasefire with Iran was over and the US launched a fresh round of strikes. The S&P was initially down more than 1%, though it has since pared most of those losses. European markets were weaker, with the Euro Stoxx falling close to 2%. Global yields moved higher, led by the UK and Europe, as markets priced greater inflation risk and the potential for tighter policy. Currency-market moves were limited.
BNZ Markets Today
There was a softer tone across global equity markets, led by weakness in the technology sector. The move began in Asia yesterday after Samsung reported record earnings but failed to meet elevated investor expectations. Its shares fell in South Korea, dragging the Kospi down nearly 5% and weighing on chip stocks globally. The Nasdaq fell more than 1.5% in US trading before subsequently recovering. With limited economic data to guide markets, global bond yields moved higher while currency markets were subdued. Oil prices rose following attacks on ships in the Persian Gulf.
BNZ Markets Today
US equities gained as investors returned from the long weekend. The Nasdaq is up about 1%, with oversold semiconductor and memory stocks rebounding after last week’s sharp falls, suggesting investors may be less concerned about the AI-related worries that have weighed on the sector in recent weeks. The S&P is up around 0.5%, while major European indices closed modestly lower. On the economic front, the US services sector expanded in June at a slightly slower pace, although firms lifted employment as cost pressures eased. Rates and FX markets are little changed.
BNZ Markets Today
It was a quiet end to the trading week for global asset markets with US cash equity and bond markets closed for a public holiday. S&P futures were up about 0.5% compared with the previous close. Major indices in Europe advanced with the euro Stoxx closing at a record high. Currency and rates markets were subdued in the absence of economic data or other catalysts. Brent crude prices were steady near US$72 per barrel.
BNZ Markets Today
A weaker-than-expected US nonfarm payrolls print set the tone for markets, pushing front-end Treasury yields lower as markets pared expectations for Fed tightening. The dollar also weakened, with the yen outperforming after Japanese authorities signalled a possible shift in intervention strategy. US equities initially traded higher before reversing. The S&P 500 is 0.5% lower, while a key gauge of semiconductor stocks declined nearly 6% as investors became increasingly anxious about the tech outlook. Oil was little changed near US$71 per barrel.
BNZ Markets Today
Global markets are little changed as investors looked for guidance from major central bankers gathered at the ECB’s annual Sintra forum. US equities have rebounded from earlier losses and are close to flat in afternoon trading. US economic data pointed to ongoing resilience in manufacturing and the labour market. Global bonds are generally steady and net moves in G10 currencies have been small. Brent crude slipped towards US$71 per barrel as the US said indirect talks with Iran were positive, while gold continues to hold near the psychological US$4,000 level after trending lower in recent months.
BNZ Markets Today
Global equities extended recent gains, with the S&P 500 up almost 1% in afternoon trading and on track for its strongest quarterly performance since 2020, having gained nearly 14%. The Nasdaq has risen close to 20% over the quarter. Oil was little changed near US$73 per barrel ahead of US-Iran talks in Qatar aimed at formally ending the conflict. Treasury yields rose, while the US dollar was mixed, with Australasian currencies outperforming within the G10 while the yen remained under pressure.
BNZ Markets Today
US equity-index futures rose in Asian trading after reports the US and Iran had backed away from a fresh escalation, easing concerns over the fragile ceasefire underpinning peace talks. The gains extended overnight, with the S&P close to 1% higher in afternoon trading despite some volatility after the cash open. Brent crude rose above $73 a barrel, having traded near $71 late last week, as markets responded cautiously to the resumption of talks. Elsewhere, the US dollar weakened against most G10 currencies, while rates markets were little changed.
BNZ Markets Today
Risk-sensitive assets came under pressure in Asia on Friday, with AI-linked regional equity indices lower and the Kospi suffering sharp losses, triggering a circuit breaker for the second time last week. US indices finished broadly flat, although tech stocks remained under pressure as chipmakers weakened. In a sign of rotation beneath the surface, the equal-weighted S&P 500 closed near a record high. Lower oil prices also helped sentiment. US Treasuries were little changed, while the US dollar recovered from an earlier decline.
BNZ Markets Today
Market movements have been modest. Reports that the Iranian Navy is trying to assert its authority in the Strait of Hormuz have contributed to a 2% lift in oil prices. That move pushed up the US 10-year Treasury yield, following its earlier fall after the core PCE deflator came in lower than some feared. The USD broke its positive daily run and is broadly weaker, although moves have been modest. The NZD is slightly higher at 0.5650.
BNZ Markets Today
Although newsflow has been light, it is hard to ignore the ongoing impact of last week’s hawkish Fed pivot, combined with improved sentiment around the Middle East conflict as oil now flows freely through the Strait of Hormuz. The net result has been USD strength, with the DXY index rising every day since last week’s FOMC update and now trading at a 13-month high above 101.5.
BNZ Markets Today
Weaker risk appetite evident through the NZ trading session yesterday extended overnight. Global equity markets are weak, global rates are lower, and the USD is broadly stronger. The NZD broke below the early-April low to trade at its lowest level this year.
BNZ Markets Today
US equity futures began the trading week on a soft note but recovered as US-Iran peace talks in Switzerland showed progress, with both sides agreeing to a roadmap toward a final deal within 60 days. Oil prices declined on further signs of de-escalation, including a waiver on some Iranian sanctions. The S&P 500 was close to flat in afternoon trading, while European equity markets closed firmer. Currency markets lacked a clear trend, with G10 pairings mixed against the US dollar. Rates markets were little changed.
BNZ Markets Today
Developments in the Middle East remained the key focus for markets into the end of last week. Iran delayed the start of negotiations with the US amid increased fighting in southern Lebanon, initially supporting oil prices and the US dollar before both retraced on news of a new ceasefire. US cash markets were closed for a public holiday, while S&P futures recovered from earlier losses in Asia to finish little changed. Major European equity indices closed modestly lower, while global bond yields were generally higher, led by larger moves in Europe.
BNZ Markets Today
There has been some reversal in moves in US equities and Treasuries that followed the Fed’s hawkish hold yesterday, with US equities rebounding and yields pushing lower. In currency markets, during NZ trading hours there was a small reversal of the USD strength, but overnight the USD has bounced back. The NZD has fallen towards 0.5750 and is mixed on the crosses. Oil is flowing freely through the Strait of Hormuz, with prices probing fresh three-month lows following the early signing of the MoU between the US and Iran.
BNZ Markets Today
Financial markets were largely in a holding pattern overnight as investors awaited the Federal Reserve’s first interest-rate decision under new Chair Kevin Warsh. Markets looked through solid US retail sales data, which pointed to continued consumer resilience. Major US equity indices and Treasuries were little changed, while the US dollar was marginally firmer against G10 currencies. Brent crude pared earlier gains above US$81 per barrel and remained near its lowest level since the early days of the Iran war. The International Energy Agency noted that, even if the US-Iran deal holds, oil exports and production would take months to recover.
BNZ Markets Today
Oil prices continue to tumble, ahead of the official signing of a US-Iran peace deal, seeing Brent crude trade down to USD79 per barrel. Falling oil prices continue to impart a downside bias to global rates. RBA and BoJ policy updates didn’t surprise, and currency market movements have been modest. The NZD has slightly outperformed, seeing it push up to 0.5840 and higher on the key crosses.
BNZ Markets Today
Oil prices fell and global equities rebounded following confirmation of a US-Iran agreement that will extend the ceasefire and allow the Strait of Hormuz to reopen for shipping. Bonds and currencies show more limited movement. Indeed, the US 10-year rate has increased since the NZ close while the NZD has reversed all of yesterday’s gain to trade flat relative to the weekend close of 0.5830.
BNZ Markets Today
Hopes for a diplomatic breakthrough to de-escalate the conflict pushed oil prices lower and lifted equities, while SpaceX’s strong debut added to Wall Street optimism. The record-breaking IPO rose 19% on its first trading day, helping support a 0.5% gain in the S&P 500 and broader strength across global equity markets. President Trump had said a deal with Iran could be finalised imminently though this looks increasingly unlikely following Isreal’s weekend strike on Beirut. Lower oil prices have eased inflation concerns and the market pushed expectations for the next Fed rate hike into next year. Currency markets were stable, while treasuries were little changed.
BNZ Markets Today
Risk appetite improved this morning after President Trump brought a halt to military actions and threats against Iran and said there was approval by a range of parties on “discussions”. US equities jumped higher, US Treasury yields fell and the NZD recovered from 0.5775 to 0.5820. Brent crude has fallen to USD90.
BNZ Markets Today
A renewed flare-up in US-Iran tensions lifted oil prices and weighed on risk sentiment. President Trump said the US would resume attacks on Iran later today, raising doubts over whether the fragile ceasefire will hold. Brent crude rebounded from near US$91 to above US$94 per barrel, while the S&P 500 is down more than 1% in afternoon trade. Currency and rates markets were little changed, with US CPI broadly matching expectations.
BNZ Markets Today
Investors have been focused on Middle East headlines, with risk appetite improving overnight after a soft start to the week. After trading on reports of military strikes, a ceasefire of sorts is now in place between Israel and Iran. Oil prices have retreated after earlier strength, US equities are higher, the US 10-year rate has pared an earlier rise, and the NZD has edged a little higher.
The week opened with reports of Iran firing missiles into Israel, Trump working the phones with media outlets and Israeli PM Netanyahu in an attempt to calm tensions, and Israel launching missiles at Iranian military targets despite Trump’s warning not to retaliate. This flexing of military muscle was a reminder that the conflict was continuing despite the so-called ceasefire being in force. A US-Iran peace deal remained elusive, with both sides seemingly no closer to an agreement.
BNZ Markets Today
Stronger-than-expected US labour market data drove a sharp repricing across markets into the weekly close, pushing rates higher and lifting the US dollar. Equities, which were already under pressure through the Asian session, extended losses after the data amid an accelerating rotation out of mega-cap technology and semiconductor names. The S&P 500 fell almost 2%, while the Nasdaq dropped 4%. Brent crude declined towards US$92 per barrel, while spot gold fell 3%, fully erasing this year’s gains.
BNZ Markets Today
US equities recovered from earlier weakness indicated by futures markets, although performance diverged across the major indices. The Dow rose more than 1.5% toward a record high, while disappointing Broadcom guidance weighed on technology stocks. The S&P 500 was about 0.5% higher in afternoon trading and European equities also posted solid gains. Brent crude fell towards US$95 per barrel as a conditional ceasefire between Israel and Lebanon eased a sticking point in US-Iran peace talks. Moves in G10 currencies were small and Treasury yields edged lower.
BNZ Markets Today
Risk sentiment weakened following reports of increased military action in the Middle East. The US-Iran conflict continues to drag on, with no imminent sign of a peace deal. US economic data showed further positive momentum in growth and inflation. Oil prices and global rates are higher, US and European equities are weaker, and the USD is broadly stronger. The NZD has underperformed further, unwinding last week’s rally.
BNZ Markets Today
After a soft start in Asia, equity markets recovered overnight. The S&P 500 posted modest gains, trading above 7,600 and reaching fresh record intraday highs, supported by technology stocks. European equities performed strongly, with the Euro Stoxx rising more than 1%. President Trump said he remains optimistic the US can soon reach an interim peace deal with Iran, even as the Islamic Republic threatened to suspend talks following Israel’s escalating attacks in Lebanon. Brent crude traded near US$96 per barrel, while US Treasury yields rebounded from session lows after resilient labour market data.
BNZ Markets Today
It has been a rollercoaster ride in markets since NZ’s Friday close, not helped by newsflow on US-Iran developments, illustrated by Brent crude trading between USD91.50 and nearly USD98. US and Iran talks are apparently back on, but the backdrop remains tense and uncertain. After a strong run into month-end, the NZD is currently weaker at 0.5940. US and Australian yields are higher from where we left them Friday.
BNZ Markets Today
Risk sentiment improved overnight after an Axios report that outlined the terms of a memorandum of understanding agreed by Iran and ready to be approved by President Trump. Brent crude is trading with a USD93 handle. US equities show modest gains to a fresh record high, the US 10-year rate is 8bps lower from the NZ close and the USD is broadly weaker, with soft US data adding to the move. The NZD has outperformed, rising to 0.5930 and with gains on all the key crosses.
BNZ Markets Today
Net market movements overnight have been modest, with a lack of newsflow and mixed messages on Middle East peace talks, although the latter hasn’t prevented Brent crude falling to USD94. US equities and Treasuries show little change. The NZD has made an incremental gain overnight in addition to the support it received after the RBNZ’s hawkish hold yesterday. It trades this morning near 0.59 and is higher on all the key crosses.
BNZ Markets Today
Risk sentiment is softer as the market awaits progress on a US-Iran peace deal and following military clashes near the Strait of Hormuz. A modest lift in US equities reflects a catch-up for the cash market after Monday’s US holiday. The futures market is modestly weaker overnight and the US 10-year rate shows little change near 4.5%. The NZD has underperformed, with lower domestic interest rates leading into today’s much anticipated RBNZ MPS update.
BNZ Markets Today
Oil and the US dollar fell while global equities rose as markets reopened for the week. Investor risk appetite improved on hopes a deal to reopen the Strait of Hormuz may be close, with senior US officials saying negotiations with Iran were advancing despite unresolved language. S&P 500 futures rose 1% and Nasdaq 100 futures 1.4%, though US cash markets were closed for Memorial Day. In Europe, the Euro Stoxx gained 2%, while the Nikkei rose 3%, lifting the MSCI All Country World Index to a record high.
BNZ Markets Today
Global equities ended last week on a firm note, with the S&P 500 rising 0.4% to extend its longest weekly winning streak since December 2023, while Asian and European markets also moved higher. The gains came despite ongoing uncertainty around the Middle East conflict, as reports of a possible US-Iran deal has contributed to volatility across oil and bond markets in recent sessions. Brent crude closed near $104 a barrel, 10-year Treasury yields edged lower, and the US dollar index traded in a relatively narrow range.
BNZ Markets Today
US equities lacked a clear directional bias as investors assessed the likelihood of a diplomatic solution to the Middle East conflict. The S&P was close to flat in afternoon trading, while key European indices posted only small net moves. Tehran is reportedly responding to a US proposal that, according to an Iranian news agency, “has narrowed the gaps to some extent”. Treasury yields were modestly lower across the curve, while initial gains in the US dollar faded.
BNZ Markets Today
Risk sentiment improved on hopes that the Middle East conflict is nearing an end, supported by comments from President Trump and signs of increased traffic through the Strait of Hormuz. Brent crude plunged 6% to USD105, global rates have fallen notably, and US and European equities are significantly stronger. The USD is broadly stronger overall, and the NZD and AUD have outperformed, with the NZD recovering to 0.5870.
BNZ Markets Today
Risk sentiment is weaker with concerns about the inflation and fiscal outlook returning, pushing up global rates. US equites show a modest fall. Net currency moves have been small. The NZD and AUD are slightly weaker, with the NZD pushing below 0.5840. Brent crude is trading with a USD111 handle.
BNZ Markets Today
Risk sentiment started the week with a risk off tone, with higher oil prices, higher global rates and weaker equity markets. While markets have been yippy, the move has been largely sustained overnight, although there has been a reversal in currency markets, with USD strength reversing, seeing the NZD recover to 0.5860. UK gilts and GBP have outperformed following a fading of UK political risk premia.
BNZ Markets Today
A meltdown in global bonds cast a softer tone over risk-sensitive assets into the weekly close. Markets are adjusting to the prospect that inflation will remain elevated, forcing central banks to keep policy tighter for longer amid elevated oil prices. Equities fell sharply, with the S&P 500 down more than 1% and major indices in Asia and Europe were also weaker. US 30-year Treasury yields traded above 5.10%, while Japan’s 30-year bond yield hit 4% for the first time. The US dollar strengthened broadly, pushing the NZD below 0.5840.
BNZ Markets Today
US equities continue their record-breaking run, supported by retail sales data showing signs of a resilient US consumer. US Treasuries have traded a tight range. There were no immediate market implications from the first day of the Trump-Xi summit. Oil prices are relatively steady. The US is broadly stronger overnight, with GBP underperforming on political developments that will ultimately see PM Starmer lose his leadership.
BNZ Markets Today
US equities rebounded after an early dip, with the S&P reaching another intra-day record high. Gains were led by technology stocks as markets looked through a larger-than-expected rise in producer prices. European equities also advanced, with the Euro Stoxx up almost 1%. Treasury yields were little changed and the US dollar was firmer against most G10 currencies. Brent slipped toward US$106 barrel. The International Energy Agency warned global oil inventories are falling at a record pace and that the market would remain severely undersupplied even if the conflict is resolved in the near term.