Economic Indicators Remain Mixed Amid Ongoing Geopolitical Tensions

The global economy continues to navigate a complex landscape of geopolitical tensions and economic indicators. The US saw mixed data, with business activity growth rising modestly in July but at an eight-month high, while input cost inflation reached a 14-month high.

In the Canadian market, producer price growth fell back slightly in June but remained +12.4% higher than year-ago levels. Japan's CPI inflation stayed low in June, but rose to a six-month high of 1.7%. The country's private sector expanded to a five-month high in July, driven by a sharp rise in manufacturing production.

In India, the PMIs for July came in notably lower than for June, with private sector growth receding and inflation pressure intensifying. The eurozone business activity rose for the first time in four months in July, while Australia saw improved new factory order levels in July, driven by stronger demand conditions.

The US 10-year bond yield is now at 4.68%, down -2bps from yesterday but up +13bps for the week. The price of gold has firmed to US$4053/oz, up +US$12 from yesterday and +US$48 for the week.