• Wall Street extended its gains on July 16, as the DJIA surged by +1.85%, the S&P 500 climbed by +0.64% and the Nasdaq advanced by +0.20%.
• Stock indexes closed higher with the S&P 500 and Dow Jones reaching new all-time highs. Bank of America surged over +5% after strong Q2 net interest income and a positive Q4 forecast. Lower bond yields, with the 10-year T-note yield hitting a 4-month low, also supported the market.
• The 10-yr UST yields dropped by -6.0 bps to 4.17%, while the 2-yr yields edged down by -1.0 bps to 4.43%. Treasuries climbed at the opening on Tuesday, aided by strong European bond markets, and increased further after the July NAHB housing market index unexpectedly decreased to a 7-month low.
• US June retail sales remained flat in monthly basis, better than the expected -0.3% MoM decline. Moreover, June retail sales excluding autos increased by +0.4% MoM, exceeding the forecasted +0.1% MoM growth.
• The US June import price index (excluding petroleum) witnessed an upward revision, rising +0.2% MoM, which stands in contrast to the anticipated -0.2% MoM decline.
• The US July NAHB housing market index defied expectations, plummeting by 1 point to a 7-month low of 42. This represents a significant downturn from the anticipated flat reading of 43.
• In Europe, the July survey of the German ZEW economic sentiment index indicated deteriorating economic expectations, with the index falling 5.7 points to a 4-month low of 41.8, exceeding expectations of 41.0.
• Global bond yields moved lower on Tuesday: the 10-yr German bund yield fell by -4.5 bps to 2.42%, the 10-yr UK gilt yield slipped by -5.2 bps to 4.05%, and the Japanese 10-yr JGB yield declined by -3.6 bps to 1.03%.
