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

0713 GMT - Japan's Nikkei Stock Average rose 1.5% to close at a record 72353.96, as enthusiasm over artificial-intelligence demand continues to spread to adjacent industries. Metals and industrial robot makers led gains. JX Advanced Metals surged 12% and Fanuc advanced 6.5%. The 10-year Japanese government bond yield rose 2.5 basis points to 2.670%, due partly to inflation fears stemming from the Middle East conflict. The dollar is at 161.68 yen, compared with Y161.30 late Friday Eastern time. Investors are focusing on the U.S.-Iran peace talks and any moves by Japanese authorities to prevent the yen from depreciating further. (kosaku.narioka@wsj.com; @kosakunarioka)

0702 GMT - Sterling falls following media reports that U.K. Prime Minister is expected to announce his resignation on Monday. Starmer has faced growing pressure to resign after his Labour Party's poor performance in local elections in May. Andy Burnham is the favorite to replace Starmer after securing a seat in parliament following his victory in a special election last week. What is relevant for sterling is how smoothly a potential leadership change would proceed and what ideas Burnham has for his term in office, Commerzbank's Michael Pfister says in a note. Sterling falls 0.2% to $1.3200. The euro rises 0.1% to 0.8673 pounds after reaching a one-month high of 0.8687 overnight, LSEG data show. (renae.dyer@wsj.com)

0657 GMT - Eurozone government bond yields fall in opening trade as oil prices decline after Iran and the U.S. agreed to the creation of a mechanism to ensure the termination of military operations in Lebanon. Eurozone yields move in the opposite direction to U.S. Treasury yields, which rise on increasing prospects of the Federal Reserve raising interest rates later this year. Both eurozone data and sovereign-bond issuance calendars are empty on Monday. The 10-year German Bund yield falls 2 basis points to 2.962%, according to Tradeweb. (emese.bartha@wsj.com)

0646 GMT - Gold prices fall as investors weigh the outlook for U.S.-Iran peace negotiations and U.S. monetary policy. In early trading, New York futures are down 0.7% to $4,218.20 a troy ounce. "For now, the yellow metal remains stuck in technical limbo," analysts at Saxo Bank say. Progress in U.S.-Iran negotiations, including efforts to ensure safe passage through the Strait of Hormuz despite diplomatic challenges over Lebanon, eased concerns over energy supply disruptions and reduced fears of a broader inflation shock. However, hawkish remarks from Federal Reserve Chair Kevin Warsh reinforced expectations that U.S. interest rates will remain elevated for longer, reducing the appeal of nonyielding assets. Meanwhile, the U.S. dollar index is up 0.1% to 100.93, making dollar-denominated commodities more expensive for overseas buyers. (giulia.petroni@wsj.com)

0646 GMT - The dollar rises as traders bet that the Federal Reserve could raise interest rates as soon as September. The Fed's meeting last week signalled the potential for raising rates by year-end, prompting markets to bring forward tightening expectations. The dollar's gains come even as oil prices fall after mediators said the U.S. and Iran made progress in talks. The dollar hasn't suffered from lower oil prices due to U.S. rate-rise bets, Commerzbank's Thu Lan Nguyen says in a note. The dollar could still benefit if oil prices rise again as this would fuel inflation and boost rate expectations, she says. The DXY dollar index rises 0.1% to 100.905, having reached a one-year high of 101.127 Friday.(renae.dyer@wsj.com)

0627 GMT - China's economy may see be less affected by high energy prices in coming quarters, according to Goldman Sachs in a research note. Notable declines in the production of refined oil and chemicals, as well as the sharp drop in domestic retail fuel sales, are clear signs that the Iran war and higher oil prices weighed on Chinese economic activity, GS says. That said,GS lowers its oil price projections for Brent in 4Q from $90 per barrel to $80 per barrel as Iran reopens the Strait of Hormuz. GS expects the drag from elevated energy prices to gradually dissipate in coming quarters. (tracy.qu@wsj.com)

0621 GMT - Goldman Sachs revises its second-quarter GDP growth forecast for China to 3.5%, down from 4.0%, following weak economic data in April and May that disappointed outside of exports and industrial production. The investment bank estimates that export growth will contribute roughly 3 percentage points to China's year-over-year GDP growth, while domestic demand lags behind at a sluggish pace. However, Goldman expects third-quarter economic growth to rebound to 5.0%, and keeps its full-year GDP forecast unchanged at 4.7%. (singaporeeditors@dowjones.com)

0606 GMT - The Japanese government can only curb speculative yen weakness with currency intervention, says Mitsubishi UFJ Morgan Stanley Securities strategist Daisaku Ueno. "As the gap between positive and negative real policy rates in the U.S. and Japan persists, it would be difficult for the magic of currency intervention to permanently contain the yen-selling pressure, which is structurally driven by investment decisions and real demand arising from the economic activities of Japanese companies and individuals," he says. Japan's Finance Minister Satsuki Katayama says she is ready to take appropriate action in the foreign exchange market as needed. The dollar is last trading at 161.68 yen, well beyond the intervention danger zone. (megumi.fujikawa@wsj.com)

0546 GMT - U.S. Treasury yields rise as trade resumes after U.S. markets were closed due to a public holiday on Friday. The rise in yields is driven by the short-end of the curve, reflecting a higher likelihood of a Federal Reserve interest-rate hike this year following the Fed's meeting last week. The rise in yield comes despite a fall in oil prices even as U.S. and Iran concluded a first round of talks in Switzerland. Both countries agreed to the creation of a mechanism to ensure the termination of military operations in Lebanon, mediators said. The two-year Treasury yield is up 4.3 basis points to 4.220%, while the 10-year yield is up 3.4 basis points at 4.484%, according to Tradeweb. (emese.bartha@wsj.com)

0538 GMT - Edmond de Rothschild Asset Management has returned to neutral on U.S. Treasurys and European government debt, staying cautious over the Federal Reserve's policy, it says in a note. "We remain cautious on the new Fed committee's ability to react to events despite its stress on price stability," the asset manager says. The Fed seems both more likely to raise rates and yet risks being accused of allowing inflation to spiral out of control if it decides against a hike, Edmond de Rothschild Asset Management says. It has taken profits on emerging market debt and gone back to neutral. (emese.bartha@wsj.com)

0523 GMT - Southeast Asia's food prices are facing an upside risk in the coming months, Goldman Sachs economists in a research note. The oil shock from the Middle East conflict has shown up in fuel-sensitive consumer price index items, they say. Higher fertilizer prices will raise farm input, while a potential El Niño event in late 2026, which typically lifts global air temperature, could create another food supply shock, they add. GS estimates a 10% increase in local oil prices will raise Southeast Asia's food consumer price index by around 0.3 percentage points after 12 months. The El Niño effects are less precisely estimated, they add. (tracy.qu@wsj.com)

0523 GMT - Geopolitics remains a factor investors need to consider amid a fragile normalization around the Strait of Hormuz, SEB's Dana Malas says in a note. "Geopolitics is now a continuous risk factor for both investment decisions and forecasting," the data scientist and junior strategist says. Iran and the U.S. agreed to the creation of a mechanism to ensure the termination of military operations in Lebanon, mediators said. In a statement early Monday, Qatar and Pakistan--the two mediators in Iran peace talks--said a line of communication between Iran and the U.S. had been formed to avoid incidents and enable safe passage for commercial vessels through the Strait of Hormuz. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 22, 2026 03:13 ET (07:13 GMT)

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