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

1003 GMT - Investors show the highest level of bullishness in July since February, Bank of America's global fund manager survey finds. BofA's broadest measure of fund manager survey sentiment--based on cash levels, equity allocation, and global growth expectations--rose to 7.2 from 6.0 the previous month, it says. Sentiment is boosted by optimism about an economic pickup, AI capex and a dovish Federal Reserve. Cash levels fell to an "uber-low" 3.6% of assets under management, the lowest since February 2026, from 4.1%, BofA says. The survey was conducted between July 2 and July 9. (emese.bartha@wsj.com)

0959 GMT - Short- to medium-term high-quality U.K. bonds look favorable, UBS Global Wealth Management strategists say in a note. Andy Burnham, the anticipated new U.K. prime minister has vowed to maintain fiscal discipline, which should "limit both additional gilt supply and the need for tighter monetary policy", the strategists say. This lowers the possibility of investors demanding higher yields to absorb additional gilt supply, making short- and medium-dated bonds attractive, they say. (miriam.mukuru@wsj.com)

0954 GMT - Eurozone industrial production was weaker than expected in May, with Ireland the key culprit, Pantheon Macroeconomics' Claus Vistesen says in a note. Output fell unexpectedly by 0.2% on month, after a 0.3% increase in April. Production in Ireland fell 5.2%, while it grew 0.8% in Germany and 1.2% in Spain. However, the small overall decline in May does not change the outlook for a modest increase in production in the second quarter, Vistesn says. Survey data has remained resilient, with the manufacturing output PMI edging up to 51.7 in June from 51.3 in May. "We think the official data will show that output rose slightly at the end of 2Q, lifting production over the quarter as a whole by just under 1%," he says. (edward.frankl@wsj.com)

0920 GMT - The Canadian dollar could fall if the Bank of Canada dampens expectations for an interest-rate rise this year in a decision at 1345 GMT, MUFG Bank's Derek Halpenny says in a note. The BOC could signal that it will keep rates on hold, pushing back against market pricing for a rate increase by year-end, he says. BOC Governor Tiff Macklem could acknowledge the risk of higher inflation due to the Iran war conflict but will also likely signal scope to wait given current relatively subdued underlying inflation, he says. Trade uncertainty and increased equity market volatility on AI concerns could also undermine the Canadian dollar, Halpenny adds. The U.S. dollar trades flat at 1.4054 Canadian dollars. (renae.dyer@wsj.com)

0911 GMT - Analysts are optimistic about the earnings outlook for U.S. dollar investment-grade and high-yield debt issuers as the earnings season nears, Pimco's Lofti Karoui says in a note. "As we enter earnings season in earnest over the coming weeks, time will tell whether the optimism reflected in analyst expectations is warranted for these U.S. dollar IG and HY issuers," he says. (miriam.mukuru@wsj.com)

0907 GMT - The cost of insuring Bahrain's sovereign debt against default rises to its highest level since April as the Middle East conflict deepens. The U.S. continued attacks on Iran on Wednesday while Iran said it struck U.S. assets in Bahrain and Kuwait. Investors are taking precaution due to uncertainty surrounding the conflict. Bahrain's five-year credit default swaps rise 1 basis point to 280bps, a 3-month high, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0905 GMT - The dollar has scope to fall further after its modest negative reaction to Tuesday's lower-than-expected U.S. inflation data, MUFG Bank's Derek Halpenny says in a note. "Despite the muted FX reaction, the scale of weakness in the CPI report certainly helps weaken on key pillar of support for the dollar--the prospect of a near-term [interest-rate] hike," he says. However, the re-escalation in the Middle East conflict and surge in oil prices makes it difficult to trade with conviction, he says. The DXY dollar index trades flat at 100.922 after earlier declines.(renae.dyer@wsj.com)

0858 GMT - The U.S. tech sector could benefit if oil prices stabilize and investors reduce expectations of interest-rate rises by the U.S. Federal Reserve, Tickmill Group's Patrick Munnelly says in a note. Rising oil prices have caused markets to price in a high possibility of Fed interest-rate rises in the coming months, and lowered demand for risk assets. Nonetheless, if energy prices climb further, inflation concerns could rise and reduce risk appetite, he says. (miriam.mukuru@wsj.com)

0833 GMT - The Norwegian krone falls after data showed Norway's inflation eased to an annual rate of 2.7% in June. However, there should be good demand for the krone at lower levels, ING's Chris Turner says in note. The krone should benefit from improved risk sentiment after Tuesday's lower-than-expected U.S. inflation data dampened expectations for Federal Reserve interest-rate rises, he says. Higher energy prices also support the currency along with potentially lower volatility favoring carry trades where investors borrow in low yielding currencies to invest in higher yielding ones, he says. "We have a one-month target at 11.05 for euro-krone, but the move could easily extend to 10.95." The euro rises 0.3% to 11.0949 krone from 11.0619 before the data. (renae.dyer@wsj.com)

0831 GMT - The Chinese economy may stabilize if Beijing steps up policy support, UOB economist Ho Woei Chen says in a research note. China's real GDP growth slowed more than expected for 2Q, the economist says. The bank lowers its 2026 growth forecast to 4.6% from 4.7% after factoring in GDP growth of around 4.6% for 2H. "While a large-scale stimulus package appears unlikely, selective and targeted measures to bolster consumption and investment could help stabilise China's economic momentum after the slowdown in 2Q," UOB says. (tracy.qu@wsj.com)

0822 GMT - Gold could fall further if expectations for higher U.S. interest rates remain entrenched, as weakening investment demand strips away one of the metal's strongest sources of support, according to ANZ. Rising Treasury yields have made risk-free assets more attractive relative to nonyielding bullion. At the same time, Fed Chairman Kevin Warsh's hawkish stance has boosted confidence in the central bank's independence, prompting investors to unwind trades that favored gold as a hedge against currency debasement. "If expectations for Fed tightening stay firm, gold is likely to remain under pressure until lower price levels reinvigorate retail and institutional investment flows and jewelry demand," ANZ analysts say. "Until that occurs, a drop towards $3,500 an ounce is a possibility." (giulia.petroni@wsj.com)

0808 GMT - Gold slips after climbing more than 2% in the previous session as investors balance a softer-than-expected U.S. inflation print and risks stemming from higher energy prices linked to the Iran war. "Lower gasoline prices helped ease inflationary pressures, prompting investors to scale back bets on tighter monetary policy and supporting a rebound in gold prices," analysts at MUFG say. "However, renewed U.S.-Iran tensions and higher oil prices continue to pose upside risks to inflation, while Fed Chairman Kevin Warsh reiterated that further policy tightening remains an option if price pressures persist." In early trading, New York gold futures are down 1% to $4,030.50 a troy ounce. (giulia.petroni@wsj.com)

(END) Dow Jones Newswires

July 15, 2026 06:03 ET (10:03 GMT)

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