U.S. long-bond rates climb above 5% due to tariff-related inflation, stirring global bond markets. China’s economy grew 5.2% in Q2 despite U.S. tariffs. Britain’s consumer price inflation hits 3.6%, complicating a potential interest rate cut. Rising prices in the U.S. signal import tax impacts on consumers. Trump’s threat to sanction Russia’s oil revenue worries markets. Stocks rebound as investors bet Trump won’t follow through on tariffs, but the market’s resilience may push him to do so.

The CPI report shows core inflation rose 2.9% annually in June, slightly below forecast. Top-line inflation accelerated to 2.7%. Prices for various goods increased, indicating import tax hikes affecting households. Federal Reserve cautious on rate cuts. Fed futures lower rate cut chances. Fed independence crucial amid political pressure from Trump. Treasury yields rise, S&P 500 drops, dollar rallies against yen.

JGB yields rise ahead of Japan’s election but pull back. French and German bond yields retreat after French budget cuts. Britain faces inflation concerns, impacting BoE monetary easing. U.S. earnings season starts somber, with JPMorgan, Wells Fargo, and BlackRock seeing mixed results. Citigroup reports strong profit growth. ASML warns on growth. Tariff-related price jumps cause inflation worries.

Producer price report, industrial production, and Fed ‘Beige Book’ released today. U.S. corporate earnings from Bank of America, Morgan Stanley, Goldman Sachs, and more. Fed officials speak. German and French finance ministers hold press conference. Markets watch for economic indicators and corporate updates. Stay informed with the Morning Bid newsletter from Reuters.

Read more at Yahoo Finance: Morning Bid: Tariff inflation irks bonds