Morning Bid: US-EU deal boosts markets and the dollar
* The Bank of England is expected to soon slow the pace at which it shrinks its 558 billion-pound ($754 billion) holdings of government bonds, and economists hope next week will shed some light on its longer-term goals for the stockpile.
* New European Union sanctions targeting Russia's oil industry will reshuffle global diesel flows for the second time since 2022, adding pressure to an already red-hot market, writes ROI energy columnist Ron Bousso.
* ROI columnist Clyde Russell claims the framework agreement reached between the U.S. and China has strong echoes of Donald Trump's failed trade deal with China from his first term as U.S. president.
Chart of the day
The U.S.-EU trade deal sees 15% levies on European exports to the United States. While the tariff applies to most goods, including semiconductors and pharmaceuticals, there are exceptions. The U.S. will keep in place a 50% tariff on steel and aluminum, for example, and there's no guarantee pharma will face higher tariffs in future either. What's more, discussions are still continuing regarding any tariff exemptions for EU wines and spirits, European Commission officials said, referring to the highly contentious area.
Today's events to watch
* Dallas Federal Reserve July manufacturing survey (10:30 AM EDT)
* U.S. corporate earnings: Universal Health, Nucor, Principal Financial, Cincinnati Financial, Veralto, Cadence, Brown & Brown, Waste Management, Welltower, Hartford Insurance, Revvity
* U.S. and Chinese trade negotiators resume talks in Stockholm
* President Donald Trump meets UK Prime Minister Keir Starmer in Scotland
* OPEC+ Joint Ministerial Monitoring Committee meeting
* U.S. Treasury sells $69 billion of 2-year notes, $70 billion of 5-year notes
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(by Mike Dolan; editing by Ros Russell)
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