Bonds & Stocks
A solid start to the earnings season fueled gains in stocks, with traders awaiting a reading on consumer sentiment for clues on the state of America’s largest engine. Bond yields fell alongside the dollar as Federal Reserve Governor Christopher Waller reiterated his case for a July rate cut.
Economy
Japanese Prime Minister Shigeru Ishiba and US Treasury Secretary Scott Bessent indicated the two nations could reach a “good” trade deal while signaling the process may take more time. Ishiba urged Bessent to continue talks vigorously with Japan’s chief negotiator Ryosei Akazawa to achieve a mutually beneficial agreement. The two sides didn’t discuss specifics on trade even as an Aug. 1 deadline for higher levies approaches, Ishiba told reporters after meeting Bessent on Friday.
World
European Union states have approached a fresh sanctions package on Russia over its war against Ukraine including a revised oil price cap, new banking restrictions, and curbs on fuels made from Russian petroleum. The package, the bloc’s 18th since Moscow’s full scale invasion, will see about 20 more Russian banks cut off the international payments system SWIFT and face a full transaction ban.