Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
International developments moved to the back seat this week, as the risks stemming from Greek debt crisis and China’s equity market eased off for now. However, renewed weakness in commodity sector and concerns over corporate profitability weighed on market sentiment.
The domestic data flow remained relatively upbeat. Initial jobless claims fell to a multi-decade low. Existing home sales rose by 3.2% in June to a new cycle high. New home sales disappointed, declining by 6.8% in June, however they were still up 18% relative to a year ago.
Next week should bring further evidence of a rebounding economy, with second quarter GDP reading expected to show a 2.5% gain. The upturn in economic data is likely to be recognized in the Fed’s July interest rate announcement, which we expect to set the stage for September rate liftoff.
