Markets
Markets initially looked on track for yet another session of summertime technical trading yesterday, counting down to Friday’s Jackson Hole address of Fed Chair Powell. European equities outperformed (EuroStoxx 50 +0.89%) as markets pondered progress in talks to end the war between Russia and Ukraine. (EMU) yields initially maintained recent gains. However, in US tech stocks fell prey to profit taking (Nasdaq -1.46%) during US dealings. In this mild risk-off, core bonds apparently attracted some safe haven flows. Gains were modest though. US yields eased between 1.5 bps (2-y) and 2.7 bps (10-y). German yields ceded up to 1.5 bps (30-y). Despite a slight loss of interest rate support and US equity underperformance (at least versus Europe), the dollar finally gained on points (DXY close 98.27; EUR/USD 1.1647). USD/JPY was exception to the rule (close 147.7 from 147.9)….
