Market Summary (Jul 31, 2025)

We see a broad dovish tilt from major central banks weighing on bond yields and the U.S. dollar, while equities—led by tech—continue to grind higher on improving growth forecasts. Disinflationary signals from our most authoritative sources have driven 10-year Treasury yields back below 4.00%, supporting rate-sensitive sectors and buoying high-dividend stocks. The euro has firmed against the greenback amid signs of stabilizing European activity, lifting European equities and core bond markets. Oil prices have slid on slowing Chinese import data, whereas gold holds near recent highs on lingering geopolitical risks. Overall, we remain positioned for tighter yield spreads, a softer dollar, resilient equity markets and select commodity divergences.