Hey team. U.S. Futures are trading higher on renewed hopes around US/EU trade talks and some relief in global bond markets, as the BOJ signals a move to tamp down domestic bond volatility.
Let’s see what’s ahead for the market!
Impact Snapshot
🟧 Consumer Confidence - 10:00am
Macro Viewpoint
It was a fairly active long weekend, with markets catching a bit of a bid after the EU/US tariff showdown—originally set for June 1—was pushed out to July. The delay followed what Trump described as "a very nice call" with EU Commission President Ursula von der Leyen.
The yield curve is bull flattening while the dollar strengthens, which could be laying the groundwork for US assets to outperform.
The EU remains the US’s biggest trading partner. Trump had floated tariff increases up to 50%, but the actual decision has been pushed to July 9, lining up with the end of the previous 90-day extension.
After all of the volatility and uncertainty the market has been conditioned to not take these “trade declarations” literally but a part of a continuum of negotiation.
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