July 1, 2022
United States:
Stocks Climb While 10-Year Yields Drop Below 2.9%: Markets Wrap
Stocks rebounded after their worst first half in 52 years, with traders assessing the outlook for the economy. The S&P 500 erased losses at the end of a week marked by intense volatility. A rally in bonds pushed the yield on 10-year US notes below 2.9% while the dollar climbed, following its best quarter since 2016.
Europe:
Euro-Zone Inflation Hits Record, Boosting Case for Big Hikes
Euro-area inflation surged to a fresh record, surpassing expectations and bolstering calls for the kind of aggressive interest-rate increases being deployed by central banks across the world. Driven once more by soaring food and energy costs, consumer prices jumped 8.6% from a year earlier in June — up from 8.1% in May. Economists surveyed by Bloomberg saw a gain of 8.5%. The median estimate in the poll has fallen short for 11 of the last 12 months.
Asia:
India Raises Gold Import Tax Amid Trade Deficit, Rupee Low
India increased its import tax on gold in a surprise move that aims to reduce inflows to the world’s second-largest consumer, after the country’s ballooning trade gap pushed its currency to a record low. The import duty on gold was increased to 12.5% from 7.5%, according to a government notice dated June 30. This is a reversal of last year when India cut the tax to 7.5% in the federal budget.
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