Key Takeaways
- JGB Futures surged by 0.7 yen, reaching their highest point since July 8, indicating potential shifts in Japanese bond market sentiment.
- Gold prices (XAU/USD) lost ground, nearing $3,350, after gaining significantly on Friday, with weaker US jobs data potentially capping further downside.
- OPEC+ agreed to increase oil production by 547,000 barrels per day (BPD) for September, as anticipated, but oil prices fell amid a darkening U.S. economic outlook.
- The implementation of the recent US-Japan trade deal faces challenges, with a Japanese official blaming delays in tariff cuts on a missing written agreement and criticizing U.S. trade tactics.
- Former President Donald Trump suggested the possibility of distributing money from tariff revenues, while also stating he ordered U.S. nuclear submarines to waters near Russia.
JGB Futures climbed by 0.7 yen, reaching their highest level since July 8. This upward movement suggests a notable shift in the Japanese bond market.
Gold prices (XAU/USD) experienced a decline, nearing $3,350, following a substantial gain on Friday. The precious metal's movements are closely tied to the implications of soft US jobs data for the American economy and the Federal Reserve’s interest-rate trajectory. Weaker US jobs data might limit further downside for gold.
OPEC+ confirmed an expected increase in oil production by 547,000 barrels per day (BPD) for September. Despite this, oil prices fell, attributed to a darkening U.S. economic outlook. Concurrently, China rejected U.S. pressure to cease purchases of Russian and Iranian crude. Furthermore, China’s private oil firms are expanding their presence in Iraq’s oil market, muscling into territory traditionally dominated by major players.
The US-Japan trade deal, hailed as "win-win" by Japanese Prime Minister Shigeru Ishiba, faces implementation hurdles. A Japanese official, Akazawa, attributed delays in tariff cuts to a missing written agreement and criticized U.S. trade tactics. Separately, former President Donald Trump indicated that there could be a distribution of money derived from tariff revenues.
Beyond trade, Donald Trump stated he ordered U.S. nuclear submarines to waters in proximity to Russia. In domestic U.S. politics, Texas Democrats left the state to obstruct a Republican effort to redraw congressional districts. A Canadian official also announced that Carney and Trump are scheduled to speak soon.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.