JAPAN: Ishiba Maintains Intention To Remain PM As LDP Critics Threaten Recall

• MNI: BOE SAYS FINANCIAL STABILITY RISKS REMAIN ELEVATED
• BOE: UK BANK SYSTEM REMAINS IN STRONG POSITION

Risks and uncertainty from geopolitical tensions and global fragmentation of trade remain elevated, the Bank of England's latest Financial Stability Report notes, with pressures on sovereign debt markets also still high. 

Although some risks have crystalised, material uncertainty remains for the global macroeconomic outlook. With its large open financial sector, these risks are "particularly relevant to the UK," the FSR notes.

• However, UK consumer and corporate borrowers remain resilient and the banking system remains in a strong position to support households and businesses if we see a downturn worse than expected.
• Risks remain from continued high valuation of global asset prices
• Banks' CET 1 ratio was 14.4% in Q1, with liquidity cover at 153%
• The Financial Policy Committee maintained the countercyclical capital buffer (CCyB) rate at 2%, with relevant risk indicators not materially above long-term averages, with the FPC adding it stood ready to raise the CCyB if necessary.
• Despite a period of high volatility and transactional volumes, operational resilience in core government bond and repo markets was sustained through Q2.
• Gilt repo discussion paper to be published by BOE 'soon'

• Some decent upside momentum in European Equities, no new headlines, and although we can't confirm stops, the price action would suggest so, some short are likely closing.
• Next resistance in VGU5 is at 5456.00, the June high.
• This latest leg is not Banking led, although SX7E is also at a new multi Year high.
• US Equities are now getting dragged higher.