Europe

The dollar was broadly weaker after dovish comments from Fed Governor Lael Brainard amid reverberations from reports of Donald Trump Jr.’s contact with a Russian lawyer; European equities rebounded with oil while S&P futures were 0.2% higher at 2,428; Treasury yields are 1-2bps lower across the curve with the 10y at 2.346% ahead of Yellen’s much anticipated testimony this morning (House today, Senate tomorrow) for further clues on the trajectory of monetary policy while the Bank of Canada is expected to hike rates later.

Authored by Patrick Buchanan via Buchanan.org,

At the G-20 in Hamburg, it is said, President Trump was isolated, without support from the other G-20 members, especially on climate change and trade.

Perhaps so. But the crucial question is not whether Trump is alone, but whether he is right. Has Trump read the crisis of the West correctly? Are his warnings valid? Is not the Obama-Merkel vision of a New World Order a utopian fantasy?

Mark Yusko, CIO of Morgan Creek Capital Management, is unafraid to say it how it is. Recall in May, his keynote address warned:

As Jim Reid writes, "it's been a very dull 24 hours" in the markets, so to pass the time the Deutsche strategist recapped his bigger picture thoughts "on government bond yields given the sell-off of the last two weeks." Hardly surprising, he goes along with the consesus, and expects yields to rise as more central banks turn hawkish (for reasons we have discussed on countless occasions, most recently yesterday) although what is interesting is Reid's take on what happens after the initial reaction, and it's here that the gloom descends because in a world with 327% debt/GDP...

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