The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0236 GMT - The New Zealand housing market continued to soften in June, with house sales down around 1% in seasonally adjusted terms, adding to a cumulative 9% fall since the start of the year, according to REINZ. Higher interest rates are likely to continue weighing on the housing market, leaning against any improvement in incomes as the economy gets back on its feet, says Michael Gordon, senior economist at Westpac. The continuing Middle East conflict may also prompt potential property buyers to hold back, with fuel costs set to rise again, as hostilities have resumed, he adds. (james.glynn@wsj.com; @JamesGlynnWSJ)

0226 GMT - New Zealand business confidence appears to be on the mend, but the outlook is still subject to uncertainty internationally, says Alexandra Turcu, economist at Kiwibank. The NZIER's second-quarter survey of business opinion shows firms appear cautiously optimistic that the worst of the Middle East conflict is over and that better times await, she adds. Still, geopolitical volatility is having a chilling effect on investment, with a net 3% of businesses planning to reduce investment over the coming months. Manufacturers remain more optimistic than builders, Turcu says. (james.glynn@wsj.com; @JamesGlynnWSJ)

0209 GMT - Japan's core machinery orders fell 12.4% in May, Wednesday's data showed, but underlying corporate investment appetite is likely to remain resilient despite Middle East uncertainties, says Norinchukin Research Institute economist Takeshi Minami. The sharp fall largely reflects a pullback after April's 8.7% rise, rather than a fundamental breakdown, he says. Solid corporate earnings, AI investments, labor shortages and expectations for Prime Minister Sanae Takaichi's growth strategy are expected to support capital expenditures, he adds. "If the situation in Iran trends toward resolution, capital spending indicators like machinery orders will likely stay solid."(megumi.fujikawa@wsj.com)

0148 GMT - Retail spending in New Zealand dropped 1.4% in June as cost-of-living pressures remained a key concern for households, says Satish Ranchhod, senior economist at Westpac. While lower fuel prices have put money back into households' pockets, things are still looking tough as fuel prices remain well above the levels seen prior to the Middle East war, and consumer confidence remains weak, he says. Looking ahead, the pressure on fuel costs is likely to persist given renewed tensions in the Middle East, global oil prices are up around 10% since the start of this week. Combined with other cost-of-living pressures, a soft labor market and continued economic uncertainty, spending levels are likely to rise only gradually through the back part of the year, he adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0107 GMT - Asian currencies may be aided by a weaker dollar, but high oil prices restrain a rebound, two strategists at OCBC Group Research say in a note. Softer-than-expected U.S. CPI data "helped pare near-term Fed [rate] hike expectations and offers the Asian region some breathing room after the recent risk-off move," the strategists say. With oil prices remaining elevated, however, Asian currencies that have greater sensitivity to energy costs and external balances such as the Indian rupee and Philippine peso could stay relatively pressured, they add. The dollar is little changed at 61.561 peso, but is 0.1% lower at 33.44 baht, LSEG data show. (ronnie.harui@wsj.com)

0041 GMT - Asian currencies consolidate against the dollar in early trade, but may be buoyed by reduced Fed rate-hike expectations. The "U.S. CPI data for June came in well below expectations," CBA's Samara Hammoud says in a research report. "Markets unwound expectations for a July Federal Reserve interest rate hike from around 45% to 18% following the data release," says the international economist and currency strategist. The U.S. dollar is little changed at 162.17 yen, but edges 0.1% higher to 1,490.60 won, while the Australian dollar is 0.1% higher at US$0.6979, LSEG data show. (ronnie.harui@wsj.com)

0036 GMT - The Bank of Korea is expected to unanimously raise its policy rate at Thursday's meeting. All 25 economists surveyed by The Wall Street Journal expect the central bank to raise its base rate from 2.50% to 2.75%. BOK Gov. Shin has repeatedly signaled a tightening bias, citing strong economic growth and inflation well above the bank's 2% target. That would mark the bank's first rate hike since January 2023. "We believe the decision will feature a unanimous preference for a 25bp hike," says Barclays economist Bum Ki Son. "We expect the market focus to be on the prospects for a back​-​to​-​back hike in August and how the BOK will address this expectation." (kwanwoo.jun@wsj.com)

0017 GMT - JGBs are mixed in early Tokyo trade, but may track overnight price gains in U.S. Treasurys. Both JGBs and Treasurys tend to move in tandem. "A softer-than-expected U.S. CPI report and strong U.S. bank earnings boosted investor sentiment with bonds and equities rallying," NAB's Skye Masters says in commentary. "Treasuries have led a rally in global bonds," the head of Markets Research adds. Benchmark 10-year JGB futures are 0.42 yen higher at 128.08 yen, while the 30-year JGB yield is up 2 bps at 3.755%. (ronnie.harui@wsj.com)

0009 GMT - The Nikkei Stock Average rises 0.8% to 68271.05, tracking Wall Street's gains overnight. Softer U.S. inflation data has "all but ruled out a July Fed rate hike, boosting equities and strengthening the case for policymakers to keep interest rates on hold over the summer months," says Axel Rudolph, chief technical analyst at IG, in an email. Among the best performers on Japan's benchmark index, Kioxia Holdings rises 5.5%, Ibiden adds 4.9%, and Taiyo Yuden is 4.5% higher. The dollar is at 162.18 yen versus 162.33 yen around Tuesday's Tokyo market close. (ronnie.harui@wsj.com)

2349 GMT - Japanese stocks may rise, tracking Wall Street's gains overnight. Blockbuster bank earnings and a cooler-than-expected U.S. inflation report boosted market sentiment. Domestic technology names may also get a boost from tech-heavy Nasdaq Composite's 0.9% rise on Tuesday. However, the Japanese benchmark index's advance may be capped amid ongoing Middle East tensions. The Nikkei futures are 710 points higher at 68355 on the SGX. The dollar is at 162.19 yen versus 162.33 yen around Tuesday's Tokyo market close. The Nikkei Stock Average closed 0.7% higher at 67743.50 on Tuesday. (ronnie.harui@wsj.com)

1952 GMT - Treasury yields fall as inflation fears ease on mild U.S. CPI. President Trump cancels plans to charge a fee on ships crossing the Strait of Hormuz, cooling an increase in oil prices to just around 1.5%. Chairman Warsh says in a House hearing the Fed still has work to do on inflation. He will address the Senate tomorrow. Economists surveyed by WSJ expect June wholesale inflation to slow down. The WSJ Dollar Index slips 0.4%. The 10-year yield falls 0.024 percentage point to 4.585%. The two-year drops 0.069 p.p. to 4.193%. (paulo.trevisani@wsj.com; @ptrevisani)

1947 GMT - Crypto assets rise as markets adjust the outlook for U.S. monetary policy in light of softer-than-expected inflation data. June CPI comes in below expectations, triggering a reduction in bets that the Fed would increase interest rates this year. More inflation data are due tomorrow, with June's PPI gauge. The CoinDesk Bitcoin Price Index rises 4%, on path to snap a two-day losing streak. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

July 14, 2026 22:36 ET (02:36 GMT)

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