EQUITIES: U.S. Stocks Remain Under Pressure
Ongoing pressure for e-minis, with fresh session lows seen across the 3 major contracts in recent trade. Much of the downside focus centres on increased U.S. protectionism when it comes to China accessing its chips and China attempting to build its capabilities in the sector.
- Meanwhile, PCE data and a soft MNI Chicago PMI reading will have done little to boost sentiment.
- S&P 500 e-minis -0.85%, NASDAQ 100 e-minis -1.40%, DJIA e-minis -0.48%
- Initial support in the S&P 500 contract is located at the 20-day EMA (6,436.50), with the latest move merely represent a pullback from fresh all-time highs at this stage.
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BOC'S ROGERS SAYS BALANCE SHEET PLANS UNFOLDING AS EXPECTED
- BOC'S ROGERS SAYS BALANCE SHEET PLANS UNFOLDING AS EXPECTED
- BOC DOESN'T WANT A TARIFF PROBLEM TO BECOME INFLATION PROBLEM
TARIFFS: Bessent Again Suggests Deals Can Be Negotiated Post Aug 1
"*BESSENT: CAN KEEP NEGOTIATING ON TRADE PAST AUG. 1 IF NO DEALS" Bloomberg
Recall Trump on Truth earlier today: "THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!""
BOC: Macklem: Situation Hasn't Changed That Much Since Last Meeting
Asked about whether the BoC thinks there is a need to cut rates later this year in its "current tariff" MPR scenario, Macklem doesn't give much away, repeating the language in the rate decision statement.
- "We're going to take our decisions one decision at a time, and our future decisions are going to depend what happens in the future."
- "I think the first message is, the situation hasn't changed that much since our last decision. We continue to proceed carefully. Given the unusual amount of uncertainty, we're continuing to put more weight on the risks, and we're ready to respond to new information."
- "The second thing I would say is we have been very clear about what we're watching most closely, what we're particularly focused on. And those are the four things I outlined. We're looking at how much are US tariffs impacting our exports? How much is the weakness in exports spilling over into business investment, into employment and into household spending. How quickly, you know, how big are those direct costs? How quickly are those getting passed through to consumer prices, and what's happening with inflation expectations?"
- "And then the other thing we've said is that, you know, looking ahead, if the weakness in the economy creates further downward pressure on inflation, and the those upward pressures from from tariffs and disrupt trade disruption are contained, there could be a need for a further cut in our interest rate."
