- When the second quarter came to a finish, US equities futures rose, while Treasuries continued to decline due to bets on future interest rate increases spurred by strong US economic growth and jobs data.
- Adding to Thursday's 16-point increase, the Treasury two-year yield increased by nearly five basis points to 4.92%. A three-point gain brought the 10-Yr yield to its highest point since mid-March. By year's end, there is now a roughly 50% likelihood that the US will increase interest rates again.
- The US price measures that are coming on Friday, which include data on personal income and spending as well as the PCE deflator, the Federal Reserve's favored indicator of underlying inflation pressures, will put such bets to the test. The figures are anticipated to indicate some weakening while yet showing that inflation is still persistent.
- More than 1% of the Stoxx Europe 600 index increased. As crude oil increased, energy firms took the initiative. Engie was one of the top individual movers after the French utility increased its full-year earnings projection.
- As statistics revealed that euro-area inflation slowed more than economists had predicted in June, yields on European bonds dropped from session highs and the euro somewhat recovered. Nonetheless, core prices once again increased, which may have discouraged the ECB from raising interest rates next month.
- BofA citing EPFR data: Japan sees $7.9 bln of inflows in past four weeks, the highest four-week inflow since April 2020.
- RBA is to raise cash rate to 4.60% in August, according to a poll of economists.
