Janet Yellen kicks off a two-day address to lawmakers in Washington, while China and the U.K. show surprising economic strength. Here are some of the things that people are talking about in markets this morning.
The dollar rallied against the yen to within 2 percent of a 13 year-high amid speculation Janet Yellen will stick to her message that interest rates will rise this year when she gives her semi-annual monetary policy testimony to congress today.
China GDP Beats Forecasts
Better-than-estimated economic data out of China gave a boost to nickel prices, but failed to shore up the country’s flagging stock market. The Shanghai Composite fell 3 percent. GDP rose 7 percent in the second quarter from a year earlier, beating economists’ call for a gain of 6.8 percent.
Greece needs debt relief
Greece needs debt relief “far beyond” what European creditors have been willing to consider, including possibly deep “haircuts” on the value of Greek debt, the International Monetary Fund said in a new analysis. Meanwhile, Greece’s Prime Minister Alexis Tsipras is threatened with a revolt within his own party in trying to get a funding deal passed, which he says he only agreed to in the first place “with a knife at my neck.” A vote on the bailout measures is scheduled to take place this evening in the Hellenic Parliament. The measure is expected to pass thanks to support from opposition parties.
U.K. Economy is Picking Up
The pound briefly reached its strongest since 2007 versus the euro today after data showed wage growth gained at the fastest pace in five years. That report comes on the heels of Bank of England Governor Mark Carney’s surprise signal to the market yesterday that a rate hike is “moving closer.” His remarks were echoed by Monetary Policy Committee member David Miles, who said “the time to start normalization is soon; that is not something to shrink from.”
Banks’ quarterly results dominate the U.S. earnings today. Tech firms Netflix and Intel are due to post results after the market closes. We'll also get the latest U.S. PPI reading, as well as data on industrial production and capacity utilization.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Iranians party into the night after nuclear deal in Vienna.
- 10 everyday items that now cost more than the monthly minimum wage in Venezuela.
- Apple is not releasing sales data for its watch, leaving analysts in the dark on its success - or lack thereof.
- This time it really is different - Greek crisis fails to panic European stocks.
- Twitter attracts spoofers. Sometimes the market reacts.
- Uber's Manhattan invasion is killing the loan market for taxi medallions.
- Pluto ‘sent a love note back to Earth’ via a NASA fly-by.
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