Macro Briefing: 28 July 2023

* US government-shutdown risk may be brewing… again
* US pending home sales index rose in June–first increase since February
* Japan 10yr bond yield jumps to 9yr high as Bank of Japan eases yield control
* German economy posts slight loss in GDP for second quarter
* US jobless claims fell more than expected last week
* Durable goods orders in US rose more than forecast in June
* US GDP posts strong upside surprise, increasing 2.4% in second quarter:

US crude oil benchmark is on track for its fifth straight weekly increase. Supported by supply cuts from the OPEC+ alliance announced earlier in July, West Texas Intermediate on Thursday (July 27) closed above $80 a barrel for the first time since April. “Crude extending the bullish rally, led by ‘risk back on’ sentiment in the equity markets, is keeping the buyers present in the crude space,” says Dennis Kissler, senior vice president for trading at BOK Financial Securities. But “the market has gone up too far, too fast with speculative buying, and that is creating the overbought condition, so we should see some erratic corrections soon.”