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

0948 GMT - The euro stays weaker against the dollar, showing little reaction even after data showed the eurozone economy expanded more than expected in the second quarter. The economy grew 0.4% quarter-on-quarter in the second quarter, according to Eurostat. Economists in a WSJ survey expected growth of 0.2%. Eurostat also reported the jobless rate held at 6.3% in June, versus an expected 6.2%. Meanwhile, the European Commission's consumer confidence index improved to -15.9 in July from -17.6 in June while the economic sentiment index rose to 96.9 from 95.4. The euro trades slightly weaker on the day at $1.1462, only marginally above levels around $1.1452 before the data were released. (renae.dyer@wsj.com)

0941 GMT - The tone of China's Politburo meeting, which ended Thursday, was less upbeat than in April, says Capital Economics' Julian Evans-Pritchard in a note. This would likely reflect the deterioration in a number of economic indicators since then, the head of China economics adds. The readout promised to step up counter-cyclical adjustments in response, however it seems that this will mainly involve making better use of existing fiscal space rather than any major new stimulus measures. The forward guidance on monetary policy was also non-committal, with the Politburo calling for adjustments when appropriate, he says. (amanda.lee@wsj.com)

0940 GMT - Saudi Arabia's second-quarter downturn was less severe than feared but still pushed the economy into technical recession, Capital Economics says in a note. Non-oil activity held up better than expected and Capital Economics expects the quarter to mark the worst of the conflict's economic impact. However, renewed disruption to oil exports could make the recovery uneven, it says. GDP contracted 4.9% from the previous quarter after falling 1.2% in the first quarter, as oil activity plunged 21.5% while non-oil activity slipped 0.5%. (farhan.rafid@wsj.com)

0938 GMT - China's Politburo meeting strikes a supportive tone but offers few tangible measures, ING economist Lynn Song says in a research note. Markets had been focused on the July Politburo meeting as a "potential window for a shift to more supportive policy in China" after relatively weak domestic activity data, the economist says. "A more supportive tone suggests we will see faster project approvals in the second half to stabilize investment, but there wasn't much in new stimulus signaled," Song says. The meeting may be disappointing for those looking for more concrete measures to support Chinese growth, Song adds. (tracy.qu@wsj.com)

0934 GMT - Germany's economy defied a depressed mood and worries related to the Iran conflict in the second quarter, ING's Carsten Brzeski says in a note. German GDP rose by 0.2%, from an upwardly revised 0.4% in the first quarter. Growth was mainly driven by exports, as industry benefited after Asian competitors were hit harder by the closure of the Strait of Hormuz. It marks the first time since the end of the pandemic lockdowns that the economy managed not to shrink for four consecutive quarters, Brezki says. Even if the outlook is highly dependent on energy prices and the war, if the economy stagnates until the end of 2026 then annual GDP growth would come in at 0.9%, the best performance since 2022, he notes. (edward.frankl@wsj.com)

0932 GMT - Uncertainty over the Federal Reserve's reaction function to inflationary risks leaves the dollar vulnerable, MUFG Bank's Derek Halpenny says in a note. Fed Chair Kevin Warsh provided little explanation for the central bank's decision to leave rates steady Wednesday, he says. Risks are skewed towards a further curve steepening with long-end yields rising more than short-end yields, he says. This tends to coincide with dollar depreciation, he says. "Fed credibility is being questioned today and after a big jump in inflation expectations the dollar outlook has certainly worsened." The DXY dollar index rises 0.1% to 100.966, having reached a one-week low of 100.762 Wednesday. (renae.dyer@wsj.com)

0932 GMT - The U.K. faces fragile economic growth, which reduces the prospects of the Bank of England increasing interest rates in the coming months, CG Asset Management's Emma Moriarty says in a note. Markets widely expect the BOE to keep rates unchanged at 3.75% when it announces a rate decision at 1100 GMT. Given high oil prices due to the Middle East conflict and rising inflation concerns, investors currently fully price in a quarter-point BOE rate increase in November, LSEG data show. (miriam.mukuru@wsj.com)

0918 GMT - Sterling could fall if the Bank of England votes 7-2 to leave interest rates unchanged at 3.75% Thursday, as expected, and its new inflation forecasts argue against future rate rises, ING's Chris Turner says in a note. "The BOE is probably not under as much pressure as the Federal Reserve to hike and as tightening expectations fade later this year, sterling should gradually weaken." The BOE announces its decision at 1100 GMT. The euro falls 0.1% to 0.8572 pounds and ING sees it potentially reaching 0.8600-0.8610 on Thursday. (renae.dyer@wsj.com)

0908 GMT - Growth in the Asia-Pacific region is likely to slow in 2026 and 2027, Moody's Analytics economists say in a commentary. Moody's Analytics expects the region's growth to slow to 4.1% in 2026 and 3.6% in 2027 compared with 4.3% recorded in 2025. Asia Pacific has avoided a sharp economic slowdown despite the Middle East conflict as the artificial intelligence boom supported export and investment growth, the economists say. "The longer the conflict goes on, the bigger risk it poses to the economics of AI investment," they add, naming elevated global commodity prices and U.S. tariffs as other headwinds. (amanda.lee@wsj.com)

0859 GMT - Yields on U.K. 30-year government bonds, or gilts, climb to a one-week high, tracking a sharp rise in U.S. 30-year Treasury yields following Wednesday's decision by the U.S. Federal Reserve where interest rates were left on hold. The Fed did not provide guidance on possible moves at future meetings, which raiseduncertainty. The surge in long-dated yields is "a long-end protest against uncertainty, inflation risk and the sense that the Fed is comfortable letting market rates do some of the tightening," Tickmill Group's Patrick Munnelly says in a note. U.K. 30-year gilt yields are up 4 basis points to last trade at 5.755%, having hit a one-week high of 5.759% earlier in the session, Tradeweb data show. (miriam.mukuru@wsj.com)

0810 GMT - China's Politburo meeting delivered a supportive but measured policy message, says J.P. Morgan Asset Management's Chaoping Zhu in commentary. While the meeting didn't announce large-scale stimulus, it reaffirmed an easing policy bias through proactive fiscal measures and accommodative monetary policy, the strategist says. The possibility of incremental policy support against the backdrop of softer growth numbers for 2Q should also support this view, he says. Financial market sentiment is likely to be underpinned by a renewed commitment to stabilizing the property sector and a pledge to improve capital market resilience, he says. Investors are likely to focus on the pace and scale of follow-through implementation, particularly in fiscal spending, monetary easing, property policies and capital market reforms, he adds. (megan.cheah@wsj.com)

0802 GMT - The dollar could fall if U.S. PCE inflation data at 1230 GMT show price pressures eased more than expected, ING's Chris Turner says in a note. "Any downside surprises here could hit the dollar given the emerging view that the Federal Reserve is trying to avoid tightening." The Fed left interest rates unchanged Wednesday. The press conference was somewhat confusing and the market's reaction suggests the Fed isn't going to be as tough on fighting inflation as initially thought, Turner says. A WSJ survey of economists expect the core PCE price index, the Fed's preferred measure of inflation, to fall to 3.3% year-on-year in June from 3.4%. The DXY dollar index rises 0.2% to 101.046.