POWER: GERMAN POWER FOR AUG. 22 SETTLES AT EU 63.04 /MWH: EPEX AUCTION"-bbg

• Fed Funds implied rates are unchanged for July and September meetings and beyond that just 0.5bp higher in an extension of Friday’s increase.
• The PBOC surprisingly cutting its seven-day reverse repo rate is one factor at play whilst investors continue to grapple with implications from Biden ending his re-election campaign.
• Cumulative cuts from 5.33% effective: 1bp Jul, 25bp Sep, 40bp Nov, 62bp Dec and 79bp Jan.
• It follows last week’s almost clean sweep of stronger than expected data but one that was overshadowed by the prior week’s CPI/PPI plus Powell’s comments on greater dual mandate progress.
• Ahead of today’s particularly light docket with the FOMC in media blackout, see the latest macro recap here.

• The e-mini S&P inches to a new daily high as markets continue to reverse the Friday leg lower, but the index will need a further 30 points to challenge the Friday high. A close higher today would snap the losing streak posted off the Tuesday cycle high at 5721.25 - intraday levels of note include 5631.62.
• It's unlikely Biden's withdrawal from the race has triggered the recovery off lows for equities this week - betting markets have shifted slightly to acknowledge Harris' nomination and likely candidacy, but Trump's comfortable lead remains - and news of Biden's stepping down across the tail-end of last week did little to prop up headline indices. 
• Outperformance in tech names (the laggards and drivers of the sell-off last week) are bouncing well: the NASDAQ-100 mini is higher by 0.8%, while Europe's tech sector in the Stoxx600 leads, higher by 1.3% at pixel time. 
• Earnings season continues apace this week, with Tuesday particularly busy - highlights include:

Monday - Verizon

Tuesday - General Motors, Lockheed Martin, Coca-Cola, General Electric, Visa, Alphabet, Tesla

Wednesday - AT&T, IBM, Ford

Thursday - AbbVie, American Airlines, Baker Hughes