Markets Overnight US equity markets ended the week on a positive note. The Dow and S&P500 both rose 0.3% on Friday. The positive sentiment continued in Asia this morning where the main indices Hang Seng and Nikkei are up 1.4% and 1.65% respectively. The outlook for higher growth in the region as well as better-than-expected US earnings fuel the Asian markets. The US Treasury market was range-bound on Friday ahead of the US treasury auctions this week. 10Y Treasury yields ended the day unchanged at 3.65% after touching 3.7% during the day. 2Y Treasury yields closed the day with a 1bp decline in yields at 0.99%. In the FX markets dollar has been range-bound against euro and yen. SEK is trading around the 10.62-level against EUR, while NOK is trading around the 8.86-level this morning. Hence, no major movements in Scandi crosses in Asian trade. Global Daily This week’s earnings reports include Walt Disney, Exxon and Chevron. Focus today on new home sales from the US. The consensus expectation for new home sales is a strong rebound in June. Later in the week we have US GDP data for Q2, which are expected to show a contraction in the US economy according to market expectations, but at a much slower pace than previous quarters. Furthermore, the US Treasury is selling USD 115bn in 2Y, 5Y, 7Y bonds and 20Y index-linked bonds this week. Scandi Daily No key economic events in Scandinavia today apart from SEK Trade balance for June. However, the trade balance is not expected to move the Swedish market. Main focus will be on the ongoing talks between the IMF and Latvia which continue this week.

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