Europe

Following yesterday's almost unanimous House vote to pass new sanctions against Russia, on Wednesday Moscow threatened to retaliate, saying that - as expected - the action has made it all but impossible to achieve the Trump  administration’s goal of improved relations, and vowed to retaliate to the latest sanctions which Russia views as senseless and destructive according to its deputy foreign minister said.

S&P futures were fractionally higher (+0.1% to 2,476) with all eyes on the Fed's rate decision as investors await another earnings deluge from companies including Facebook, Coca-Cola and Boeing. Asian and European shares were also higher, prompted by momentum from the latest US record high; the Dollar rebound continued while oil rose above $48 as copper hit a two year high.

Submitted by Bill Blain of Mint Partners

Blain's Morning Porridge, July 26.

“Bankruptocracy is as much a European predicament as it is an American invention.”

Apologies for lack of comment y’day, but my computer decided to auto-destruct just as I about to send it out. Despite many reports saying markets are now in full holiday season, there’s still plenty of serious stuff still going on, and some subtle shifts in direction to figure out.

Authored by Alex Gorka via The Strategic Culture Foundation,

The White House indicated that President Donald Trump is preparing to sign a sweeping Russia sanctions measure, which the House took up last night, that requires him to get Congress' permission before lifting or easing the economic penalties against Russia...

A few weeks ago, we wrote a note about how European auto lenders are becoming just about as ridiculously undisciplined as their counterparts in the United States.  Apparently an ever-growing reliance of European millennials on lease financing has auto ABS investors worried about a potential crash in used car prices at some point in the not so distant future...that sound familiar to anyone?  (See: It's Not Just Americans, Europe's New Obsession With Auto Leases Is "Catastrophic For Used Car Prices")