Trade tensions moved higher over the weekend with both Trump and China talking up how well they are doing . China confirmed that they will retaliate if proposed US tariffs are implemented and that they are strong enough to survive any prolonged trade war. Trump talked up the use of tariffs at a rally but he is really just appealing to his support base.
Stock indices continue to edge higher in subdued summer trade with Dow looking to open at 25438 down 16 , the S&P500 at 2838 down 1 , and the Nasdaq 100 at 7390 down 4..
In FX the US Dollar continues to be strong with EUR at 1.1550 down 0.15% , the GBP at 1.2940 down 0.48% on further no deal Brexit talk , and the JPY is at 111.43 weaker by 0.13%. The DXY futures are close to 12 month highs at 95.35. Gold continues to struggle at 1209 down 0.31% and WTI Crude Oil futures are at 69.40 up 1.33% on fears that the Iran sanctions will cause large price rises.
In the bond markets yields remain in tight ranges with US10 at 2.96% , UK10 at 1.31% , and GE10 at 0.40%.
No economic data due out tonight.