100bp Fed Step Isn’t Ruled Out

Below gives key levels of markets in the second half of the Asia-Pac session:

• Nikkei 225 up 181.49 points at 26660.26
• ASX 200 up 28.143 points at 6649.70
• Shanghai Comp. up 10.21 points at 3294.502
• JGB 10-Yr future down 3 ticks at 149.23, yield unch. at 0.232%
• Aussie 10-Yr future down 3.5 ticks at 96.535, yield up 3.4bp at 3.422%
• U.S. 10-Yr future -0-11 at 118-18+, yield up 1.85bp at 2.952%
• WTI crude up $0.53 at $96.83, Gold down $5.27 at $1730.24
• USD/JPY up 82 pips at Y138.22
• FED’S MESTER SAYS CPI DATA GIVES NO REASON FOR SMALLER JULY HIKE (BBG)
• FED’S DALY FLAGS CURRENT PREFERENCE FOR 75BP HIKE, NOTES 100BP MOVE IS POSSIBLE
• FED’S BOSTIC SAYS JUNE CPI CONCERNING, ‘EVERYTHING IS IN PLAY’ (BBG)
• EU CUTS EURO-AREA GDP FORECAST, SEES 7.6% INFLATION, DRAFT SHOWS (BBG)
• ITALY'S GOVERNMENT FACES COLLAPSE AS 5-STAR SHUNS CONFIDENCE VOTE
• SUNAK TOPS FIRST VOTE TO BE NEXT UK PM (RTRS)
• CHINA IS SAID TO GET CAUTIOUS ON OUTBOUND SPENDING AS FED HIKES (BBG)