ISRAEL: Confirmation Of Gaza City Takeover Draws European Backlash
The security cabinet's approval of gov't plans for a forced evacuation and full IDF takeover of the densely populated Gaza City has drawn a backlash from European countries. The plans, eventually approved after an all-night security cabinet meeting, appear to be altered from Netanyahu's initial proposal for a full IDF takeover of the Gaza Strip. Chief of the General Staff Eyal Zamir opposed Netanyahu's plans, stating, “The lives of the hostages will be in danger if we go ahead with this plan to occupy Gaza. There is no way to guarantee that we will not harm them. Our forces are worn out, the military tools need maintenance, and there are humanitarian and sanitary [concerns regarding the Palestinian population.”
- Afterwards, German Chancellor Friedrich Merz confirmed in a statement that Germany "will, until further notice, not approve any exports of military equipment that could be used in the Gaza Strip". UK PM Sir Keir Starmer said the plans were "wrong" and "will only bring more bloodshed". The Belgian Foreign Ministry summoned the Israeli ambassador over the plans "to express its total disapproval" of the decision.
- While several European nations have moved towards recognising a Palestinian state (if they do not already), and more vocally called for Netanyahu to change course, these calls have had little-to-no impact on Israeli policy, and there is little reason to expect any change this time around. The response of the United States, Israel's major military and financial backer, will remain the only influential foreign voice with regards to gov't policy.
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LOOK AHEAD: Tuesday Data Calendar: June FOMC Minutes, Tsy 10Y Note Re-Open
- US Data/Speaker Calendar (prior, estimate)
- 07/09 0700 MBA Mortgage Applications reported 9.4% from 2.7% prior
- 07/09 1000 Wholesale Trade Sales MoM (0.1%, 0.2%)
- 07/09 1000 Wholesale Inventories MoM (-0.3%, -0.3%)
- 07/09 1130 US Tsy $65B 17W bill auction
- 07/09 1300 US Tsy $39B 10Y note auction R/O (91282CNC1)
- 07/09 1400 FOMC Meeting Minutes for June
- Source: Bloomberg Finance L.P. / MNI
MNI EXCLUSIVE: Austrian National Bank governor Robert Holzmann speaks to MNI
Austrian National Bank governor Robert Holzmann speaks to MNI.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
OUTLOOK: Price Signal Summary - Bear Threat In Gilts Remains Present
- In the FI space, Bund futures traded lower Tuesday, extending Monday’s sell-off. Support at 129.77, the Jul 3 low, has been cleared. The clear break confirms a resumption of the recent bearish theme and opens 129.30 next, the May 22 low. On the upside, resistance around the the 50-day EMA, at 130.47, has recently been pierced but for now, remains intact. A clear break of it is required to highlight a possible reversal.
- A bear cycle in Gilt futures remains in play and Tuesday’s sell-off reinforces this theme. The contract has breached support at 91.63, the Jul 2 low. Price has also pierced 91.50, the 61.8% retracement of the May 22 - Jul 1 bull leg. This exposes 90.97, the 76.4% retracement point. Clearance of this level would strengthen a bearish theme. On the upside, initial firm resistance is at 92.51, the 20-day EMA.
