As if investors didn’t have enough variables to deal with, the back-and-forth between the world’s two largest economies has devolved into reciprocal consulate closures and added another layer of uncertainty into an already uncertain world. Equity markets slipped in overnight trading and will likely begin their domestic trading day slightly in the red. But, the Treasury market is not experiencing a corresponding rally and the Ten-Year Treasury’s yield still hovers around 58 basis points. Most bond prices along the curve are little changed apart from a little slippage in the long end.
A little later this morning, New Home Sales for June will be reported and a modest pick-up over May’s results is expected. Earlier in the week, Existing Home Sales notched an almost 21% rise over the previous month, but it’s unlikely we’ll see anything like that for New Homes. Markit Services PMI’s for Manufacturing and Services will also be published later today and should indicate a return to expansionary levels. Meanwhile, gold is sneaking up on $1,900 but isn’t quite there at $1,894. Crude oil is up very slightly at around $41.50.