Despite Japan’s GDP shrinking more than expected, Eurozone’s trade surplus widening to a record level and no actual, comprehensive trade deals of note having been signed by the US President, positive momentum in global stock markets persists. European stock indices continue to outperform and are on track for their fifth consecutive week of gains. In the US building permits fall more than expected but housing starts rebound.
Oil price on track for second week of gains
The rally off its 4-year low amid supply concerns and lingering tensions between India and Pakistan puts the oil price on track for its second week of gains. Precious metals such as gold and silver continue to slide, though, as flight to safety trades are being unwound. While the US dollar is little changed over the week, global bond yields initially rallied to a one-month high as soft US economic data reinforced Fed rate cut expectations before they fell back towards the tail end of the week as rate cut expectations were pushed back to September.