Euro edges back

It was a quiet day across most markets yesterday. The euro did lose out a little and is now back trading at $1.12 to the dollar and at just over 89p to sterling. Equities turned up again, after a down day on Wednesday, with small gains for the S&P and the Eurostoxx while the FTSE was flat

It was similarly quiet in sovereign bond markets with yields across the curve in core Europe and the US more or less unchanged while yields in the UK fell slightly. In early trading today, yields across the board are grinding lower with 10-year bund yields back down to -0.26%

Oil prices rose following news of an attack on oil tankers in the Gulf of Oman. The US has blamed Iran for the incident and rising tensions in the region could disrupt supplies. However, weakening global oil demand and large US stockpiles are tempering any substantial price increases. A barrel of Brent crude rose about 2% yesterday to $61

Boris Johnson was the big winner after the first round of the Conservative party leadership election. He finished in first place with 114 votes out of 313 cast. Still a ways to go but a Johnson premiership increases the risk of a no deal Brexit. Expect political manoeuvring ahead of the next round of voting on Tuesday

Data due today includes US retail sales and industrial production while BoE Governor Mark Carney is due to speak