Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0904 GMT - The cost of insuring euro credit against default falls as market sentiment improves after the U.S. cancelled a planned attack against Iran. President Trump said that U.S. would resume peace talks with Iran on Monday, calming concerns about potential escalation in the Middle East conflict. The iTraxx Europe Main index of euro investment-grade credit default swaps falls 1 basis point to 53bps, S&P Global Market Intelligence data show. The iTraxx Europe Crossover index of euro high-yield CDS falls 5bps to 256bps. (miriam.mukuru@wsj.com)

0843 GMT - A potential correction in stock prices could hurt U.S. dollar-denominated convertible bonds, Credit Mutuel Asset Management's Akram Gharbi says in a note. U.S. issuers generally have higher debt levels relative to their European peers, making the bonds vulnerable to sharp drops in the stock market combined with considerable credit-spread widening, Gharbi says. "Regarding the U.S. convertible market, we remain cautious regarding the AI cycle," he says. (miriam.mukuru@wsj.com)

0817 GMT - Indonesia's headline inflation is expected to remain broadly stable through 2H, RHB economist Wong Xian Yong says in a note. Food prices are likely to remain the main source of volatility as El Nino conditions strengthen, while sustained rupiah weakness could gradually feed into imported inflation, he says. However, subdued domestic demand and well-anchored inflation expectations should help limit broader price pressures, he reckons. RHB expects Bank Indonesia to keep its benchmark interest rate unchanged at its August meeting, extending its policy pause after raising rates by a cumulative 100 bps since May. Wong continues to expect one additional 25bps rate hike in 3Q, primarily to support the rupiah and contain imported inflation rather than respond to broad-based domestic price pressures. (yingxian.wong@wsj.com)

0811 GMT - Euro-denominated convertible bonds look appealing given the high quality of issuers and resilient market conditions, Crédit Mutuel Asset Management's Akram Gharbi says in a note. Convertible bonds are debt securities that have the potential to be converted into shares, combining bond and equity-like features. Euro convertible bonds offer better risk-reward balance than equities, Gharbi says. (miriam.mukuru@wsj.com)

0808 GMT - The dollar should be weaker than current levels after the U.S. and Japan confirmed joint currency interventions to support the yen and as oil prices fall on hopes for a U.S.-Iran deal, ING's Chris Turner says in a note. "The fact that the dollar is not broadly weaker probably owes to the unresolved issue of whether the Federal Reserve will hike in September," he says. Pricing for a September rate rise has recovered since last week's Fed meeting on the view that failure to act would lead to a further selloff in long-dated Treasurys, he says. The DXY dollar index falls 0.1% to 99.733 after reaching a seven-week low of 99.418 overnight. (renae.dyer@wsj.com)

0753 GMT - Gold prices edge higher after President Trump refrained from launching fresh attacks on Iran, sending oil prices lower and easing concerns about inflation and further interest-rate hikes. In early European trading, New York gold futures are up 0.2% to $4,113.90 a troy ounce. Brent crude, the global oil benchmark, tumbled to $83 a barrel as Trump told reporters Sunday that the U.S. would engage in talks with Iran beginning Monday afternoon. Meanwhile, the U.S. dollar index is down 0.1% to 99.79 after Japan and the U.S. confirmed joint intervention to shore up the yen, making dollar-denominated commodities cheaper for overseas buyers. (giulia.petroni@wsj.com)

0731 GMT - European energy stocks open lower on slumping oil prices as President Trump prioritizes diplomacy and says new talks with Iran will begin Monday. This pushes Brent down 5.2% to $83.41 a barrel, while WTI falls 3.3% to $73.94 a barrel. In London, BP falls 2.1% and Shell drops 1.2%. France's TotalEnergies, Italy's Eni and Spain's Repsol all fall around 2.2%. Norway's Equinor is down just over 3%. (adam.whittaker@wsj.com)

0717 GMT - The historic international coordination in the FX market could prove to be a "game changer" for the yen's outlook, says SMBC's Hirofumi Suzuki, noting related announcements by the U.S. and Japan. "It is highly significant that the response to the yen's depreciation was presented not as unilateral intervention, but as a measure backed by international consensus," the chief FX strategist says in an email. "FX intervention is likely to continue to curb yen weakness on a sustained basis," Suzuki says. "Combined with the use of the FIMA Repo Facility, concerns over the depletion of Japan's foreign exchange reserves have also largely dissipated," Suzuki adds. The dollar is 0.6% lower at 156.59 yen, according to LSEG data. (ronnie.harui@wsj.com)

0717 GMT - Yields on U.K. government bonds decline as oil prices dip after the U.S. cancelled planned attacks against Iran. President Trump said negotiations with Iran would resume on Monday, easing fears about possible escalation in the conflict. In addition, the Bank of England's policy meeting last week signalled no rush to raise interest rates, causing markets to lower expectations of BOE rate rises in 2026. Ten-year gilt yields fall 5.9 basis points to last trade at 4.978%, Tradeweb data show. (miriam.mukuru@wsj.com)

0713 GMT - Bitcoin falls on concerns about an ongoing hack of a popular bitcoin storage device. Canada-based Coinkite Inc. has urged users of its Coldcard digital wallets to move their bitcoin after security researchers said a software flaw might have allowed attackers to steal about $70 million worth of the cryptocurrency in less than an hour. Meanwhile, bitcoin exchange-traded funds recorded outflows on Friday. Bitcoin falls 1.3% to $62,591, according to LSEG data.(renae.dyer@wsj.com)

0711 GMT - Eurozone government bond yields fall, tracking moves in U.S. Treasury yields, as oil prices decline after U.S. President Trump said diplomatic talks with Iran would resume. Trump told reporters Sunday that the U.S. would engage in talks beginning Monday afternoon. Still, the situation is the Middle East remains uncertain. "On geopolitics, we are still not comfortable that we are out of the woods," Jefferies' Mohit Kumar says in a note. The 10-year German Bund yield falls 4.7 basis points to 3.155%, according to LSEG. (emese.bartha@wsj.com)

0653 GMT - Operating conditions in Indonesia's manufacturing economy improved at the start of 3Q, the latest S&P Global data suggests. Headline manufacturing purchasing managers index was at 50.2 in July, up from June's 46.9.The latest reading indicates a renewed upturn in output volumes in the Indonesian manufacturing sector, partly due to the stabilization of new order intakes, says Usamah Bhatti, an economist at S&P Global Market Intelligence. The slight improvement in overall conditions also encouraged firms to raise staffing numbers for the first time in five months, S&P says.(amanda.lee@wsj.com)

(END) Dow Jones Newswires

August 03, 2026 05:04 ET (09:04 GMT)