TARIFFS: Trump Pushing For Minimum Tariff of 15-20% on EU - FT
Jul-18 16:37
See the piece in full here: https://www.ft.com/content/43c98c4b-8772-4279-ad55-e46bd22409de
- Some snippets: "Donald Trump has escalated his demands in trade negotiations with the EU, pushing for a minimum tariff of 15 to 20 per cent in any deal with the bloc, according to three people briefed on the talks."
- "The US president’s hardened stance aims to test the EU’s pain threshold after weeks of talks on a framework agreement that would have maintained a baseline tariff of 10 per cent on most goods."
- "People familiar with the negotiations say Trump has also been unmoved by the latest EU offer to reduce car tariffs, and would be happy to keep duties on the sector at 25 per cent as planned."
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BONDS: EGBs-GILTS CASH CLOSE: UK Curve Bull Flattens Ahead Of BOE
Jun-18 16:19
Curves bull flattened Wednesday, with Gilts modestly outperforming Bunds ahead of Thursday's BOE decision announcement.
- Early trade saw some bull steepening led by Gilts after UK CPI data looked in line with expectations.
- There was a broad rally across core FI for almost the entire remainder of the session however, with the long end leading gains.
- The main triggers were weak-leaning US data (jobless claims and residential construction), with lower oil prices as US President Trump seemingly views a near-term resolution on the Iran-Israel conflict.
- The German and UK curves both bull steepened on the day. Periphery/semi-core EGB spreads were little changed.
- Overnight focus will be on the US Federal Reserve, but the BOE takes centre-stage Thursday - MNI's preview is here.
- It would be a surprise to markets if the outcome is anything other than an on hold decision with unchanged official guidance. Expectations are relatively strongly pointing towards a 7-2 vote split for a hold/cut respectively.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is down 2.6bps at 1.842%, 5-Yr is down 3.8bps at 2.103%, 10-Yr is down 3.8bps at 2.497%, and 30-Yr is down 4.1bps at 2.944%.
- UK: The 2-Yr yield is down 3.5bps at 3.888%, 5-Yr is down 4.7bps at 4.006%, 10-Yr is down 5.5bps at 4.495%, and 30-Yr is down 5.4bps at 5.229%.
- Italian BTP spread down 0.2bps at 95bps / French OAT unchanged at 71.5bps
US STOCKS: Midday Equities Roundup: Off Highs, Reacting to Geopol Headlines
Jun-18 16:12
- Similar to this week's underlying themes, stocks gained as wires reported that Iran had reached out to Pres Trump to discuss a ceasefire with Israel. Support gradually eased after Iran denied the call: Iranian officials posted on social media: "Iran does NOT negotiate under duress, shall NOT accept peace under duress, and certainly NOT with a has-been warmonger clinging to relevance."
- Currently, the DJIA trades up 173.38 points (0.41%) at 42389.47, S&P E-Minis up 25.5 points (0.42%) at 6063.75, Nasdaq up 115 points (0.6%) at 19636.09.
- Leading gainers included Coinbase Global climbing 6.51% after a Stablecoin bill cleared the Senate, Enphase Energy +4.81% and Nucor +3.71%, Jabil +3.83%, Intel +3.61.
- Conversely, insurance and financial services retreated: Allstate Corp -3.47%, Progressive -3.06%, Visa -2.81%, while oil and gas shares retreated as crude scaled back a fraction of Tuesday's rally (WTI -0.74 at 74.10): Halliburton -2.87% and CF Industries Holdings -2.50%
FED: US TSY TO SELL $76.000 BLN 13W BILL JUN 23, SETTLE JUN 26
Jun-18 16:05
- US TSY TO SELL $76.000 BLN 13W BILL JUN 23, SETTLE JUN 26
