• Wall Street equities closed with gains on July 12, as the DJIA grew by +0.62%, the S&P 500 expanded by +0.55% and the Nasdaq closed up by +0.63%.
• US stocks closed higher on Friday, with both the S&P 500 and Dow Jones reaching record highs. The rally followed a recovery in chip stocks after Thursday's sell-off and a drop in consumer sentiment data, which fueled speculation of a Fed rate cut in September and boosted investor confidence.
• The 10-yr UST yields fell by -2.0 bps to 4.18%, while the 2-yr yields dipped by -5.0 bps to 4.45% after Friday's surprise decline in the University of Michigan's US July consumer sentiment index to an 8-month low led to short covering in Treasury notes.
• US June PPI for final demand rose +0.2% MoM and +2.6% YoY, outpacing expectations of +0.1% MoM and +2.3% YoY. Excluding food and energy, PPI increased +0.4% MoM and +3.0% YoY, exceeding forecast of +0.2% MoM and +2.5% YoY, the largest annual rise in 14 months.
• The University of Michigan consumer sentiment for the US fell to 66.0 in July 2024, the lowest since November, down from 68.2 in June and below the forecast of 68.5.
• In Asia, China's trade surplus surged to USD99.05 billion in June 2024, exceeding market expectations by a significant margin. This marks a sharp rise from USD69.80 billion in June 2023 and represents the highest level since July 2022.
• Global bond yields were mixed on Friday: the 10-yr German bund yield rose by +3.3 bps to 2.49%, the 10-yr UK gilt yield climbed by +3.5 bps to 4.11%, and the Japanese 10-yr JGB yield slipped by -2.5 bps to 1.07%.
