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

0938 GMT - The cost of default protection for euro-denominated credit advances as market sentiment worsens due to concerns about possible overvaluation of AI companies. Investors question how much longer the AI rally can run and are consequently selling technology stocks and lowering their appetite for risky assets. The iTraxx Europe Crossover index of euro high-yield credit default swaps rises 2 basis points to 253bps, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0856 GMT - Singapore's nonoil domestic export growth eased in June but that doesn't dent Nomura analysts' outlook for the economy. Overall exports momentum was underpinned by a surge in electronics shipments, in line with still-strong global chip sales and broadening artificial-intelligence-related demand, Euben Paracuelles and Yiru Chen write in a note. That helped counter volatility in pharmaceuticals and gold. Nomura maintains its above-consensus 2026 GDP growth forecast of 4.6%, and sees room for an upward revision. Singapore delivered a better-than-expected 1H economic performance and has multiple engines for near-term growth ahead, including in electronics exports. (fabiana.negrinochoa@wsj.com)

0856 GMT - UOB maintains its estimates for Malaysia's 2026 inflation at 2.0% despite upside risks from higher energy prices and weather-related disruptions to global food supplies. The impact on domestic prices should be cushioned by targeted fuel subsidies and government measures to stabilize supply, economists Julia Goh and Loke Siew Ting say in a note. The moderation in June inflation and easing core inflation suggest underlying price pressures remain contained, they reckon. Given contained inflation and uneven growth across sectors, Bank Negara may keep its policy rate unchanged at 2.75% for the rest of the year, maintaining a cautious, data-dependent stance, while monitoring external risks to the domestic inflation and growth outlook. (yingxian.wong@wsj.com)

0855 GMT - BlueBay Asset Management has been tactically buying 10-year German Bund yields at yields around 3.12% over the past week, fixed income CIO Mark Dowding says in a note. Unlike other major central banks, the European Central Bank hiked interest rates early in response to higher energy prices. This could help prevent a rise in medium-term inflation expectations and alleviate the potential for more aggressive policy action later, Dowding says. "In this light, we continue to favour European yields, relative to those in the U.S.," he says. The asset manager also adds exposure to U.S. inflation swaps at attractive levels following below-forecast June inflation data. The 10-year Bund yield falls 1.7 basis points to 3.120%, according to LSEG. (emese.bartha@wsj.com)

0836 GMT - High-yield corporate bonds are coming back in demand, but risk factors are increasingly a key focus for investors, says Vincenzo Vedda, CIO at DWS. After years of very low interest rates, yields have increased to around 6% to 7%, allowing investors to generate a visible stream of income simply by holding such bonds, Vedda writes in a note. However, higher financing costs and slower economic growth are putting pressure on companies, especially those with weaker balance sheets, Vedda says. Due to technological shifts, different business models face greater uncertainty, and similar yields could mask different underlying risks, he adds. Investors increasingly need to rely on individual company fundamentals, such as debt levels, profitability and refinancing ability, rather than on broad market trends. (kimberley.kao@wsj.com)

0828 GMT - Investors' expectations of interest-rate rises by the Bank of England look too aggressive, ING's Francesco Pesole says in a note. Markets price in a total of 36 basis points of BOE rate increases in 2026, LSEG data show, due to concerns that high oil prices could lead to elevated inflation. ING expects the BOE to keep interest rates on hold at 3.75% through out 2026. "We still see plenty of downside risk for front-end sterling rates," Pesole says. (miriam.mukuru@wsj.com)

0828 GMT - Sterling falls against the euro, pulling from a recent 13-month high. An imminent change of leadership in the U.K. raises concerns that sterling could be overvalued in the short term and the currency could give back its recent gains, ING's Francesco Pesole says. Position adjustments and the sterling's appeal as a higher-yielding currency have helped lift the currency recently, but political uncertainty could now take center stage, he says. Andy Burnham is due to be officially pronounced the new leader of the ruling Labour Party on Friday and will take over as Prime Minister on Monday. The euro rises 0.2% to 0.8501, recovering after hitting a low of 0.8453 on Wednesday, LSEG data show. (jessica.fleetham@wsj.com)

0756 GMT - Gold prices slip below $4,000 a troy ounce and are on track for a weekly decline of more than 3%. Escalating hostilities between the U.S. and Iran are fueling fears that higher energy prices could keep inflation elevated and prompt the Federal Reserve to raise interest rates. "The recent price action suggests that markets are placing greater weight on the prospect of higher-for-longer U.S. interest rates than on gold's traditional safe-haven demand, leaving gold vulnerable unless geopolitical risks translate into a broader deterioration in financial market sentiment," says Soojin Kim from MUFG. In early trading, New York gold futures rise 0.1% to $3,996.80 an ounce. (giulia.petroni@wsj.com)

0800 GMT - Corporate credit remains attractive as companies are in healthy financial positions and their bonds provide favorable yields, Edmond de Rothschild's Global Investment Research team say in a note. "Issuers' profitability--and thus their creditworthiness--remains resilient despite geopolitical shocks." However, investors need to be selective while picking corporate bond given the low credit risk premium currently priced in, they say. (miriam.mukuru@wsj.com)

0727 GMT - Yields on U.K. government bonds fall, reversing Thursday's rise, as oil prices stabilize and inflation concerns ease. Oil prices are more contained than they were at the start of the week, providing relief over inflation fears, particularly after recent weaker-than-forecast U.S. inflation data. Demand for safe-haven assets such as government bonds also pushes yields lower as hostilities between the U.S. and Iran continue. Ten-year gilt yields fall 3.6 basis points to last trade at 4.938%, Tradeweb data show. (miriam.mukuru@wsj.com)Standard Chartered's Edward Lee said tariffs might continue to weigh on growth. "U.S.'s Brazil Tariff Move Spotlights Continued Trade Risk -- Market Talk," at 0439 GMT on July 16, misstated his first name.

0718 GMT - Eurozone government bond yields fall in early trade, tracking U.S. Treasury yields lower. Oil prices edge slightly higher but their rise is limited, with Brent crude trading at $84.55 per barrel, still significantly below the Middle East war-time peak of $126.41 on April 30. The data calendar is light on Friday, although eurozone balance of payments data for May and final harmonized CPI data for June are due for release. There is no government bond issuance due. The yield on the August 2036-dated Bund yield falls 1.8 basis points to 3.120%, according to LSEG. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 17, 2026 05:38 ET (09:38 GMT)

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