Bonds & Stocks
Stocks climbed around the world, joining gains in bonds as oil fell on hopes the US and Iran will restore their diplomatic efforts after tensions in the Middle East eased. The revival in risk appetite sent the S&P 500 higher, with the gauge also buoyed by solid corporate earnings.
Economy
Federal Reserve officials will head into their policy meeting this week confronting a resurgence in price pressures that could make their decision on whether to hold or hike interest rates a close call — and a contentious one. Renewed tensions in the Middle East have sent oil prices soaring again, overshadowing a tamer-than-expected reading on June consumer prices that seemed to offer officials breathing room to keep rates stable.
World
China said the US had committed to cap replacement tariffs on Chinese goods at 20%, staking out a limit on further increases after US President Donald Trump imposed a new levy. The Trump administration’s new tariffs came as the US president rebuilds a protectionist wall after the Supreme Court struck down his initial levies.