AWARDS
Markets calmed overnight, with the global rate sell-off slowing slightly, although 30-year US Treasury yields remained at cyclical highs around 5.16%. The more favorable sentiment was supported by a well-received auction of 20-year Japanese government bonds and a more subdued UK consumer price index (CPI), which supported a moderate correction in government bonds, especially at short-term levels. The currency market remained largely range-bound, although Indonesia stood out after an unexpected 50 basis point gain, while the USD/JPY exchange rate stabilized and the Japanese Ministry of Finance continued with moderate verbal intervention. Despite the calmer market environment, the overall macroeconomic picture remained largely unchanged, with developments in the Middle East still in focus after Trump renewed threats of attacks against Iran in the event of a no-deal situation.
Today, the main focus is on the FOMC minutes, with interest rate markets awaiting any sign of intensifying discussions about a possible rate hike. Nasdaq futures are rising ahead of Nvidia's earnings release this evening, while Target is also in the spotlight to gauge US consumer sentiment. Elsewhere, the Kospi lagged behind on concerns about the Samsung workers' strike, higher inflation readings in South Africa supported expectations of a 25 basis point SARB rate hike next week, China left its one- and five-year interest rates unchanged, and political tensions in Brazil remain in the background.
