Market Brief: Brexit Optimism Boosts GBP, US Indices Pull Back

• FX: Potentially positive signs on Brexit made the pound the strongest major currency on day. The kiwi brought up the rear.
• Commodities: Gold edged nearly 1% higher on the day while Oil tacked on 2.5%. See more on the why silver may start to outperform gold.

• US indices closed marginally lower in “dog days of Summer.” Yield curve inversions were the story of the day, with the 2s10s inverting on a closing basis and the 30-year Treasury yield falling below that of the 3-month tenor for the first time in 12 years.
• Utilities (XLU) were the strongest sector today while Energy stocks (XLE) were the weakest.
• Stocks on the Move:
  • Altria (MO, -4%) and Philip Morris International (PM, -7%) are reportedly in talks to merge after separating back in 2008.
  • Costco Wholesale (COST) rallied 5% after opening its first store in China. It took some customers up to three hours to park and the store had to close early due to the massive crowds.
  • Johnson and Johnson (JNJ) rose 2% on a smaller-than-feared $572M fine for the firm’s role in fueling the opioid epidemic.
  • Snapchat (SNAP) dropped 4% on news that rival Instagram was working on a new messaging app called Threads for close friends and family.

*No major macroeconomic data is scheduled for release in the upcoming Asian session.*