In a latest development, US Treasury Secretary Bessent has announced his plans to write a brief for the US Solicitor General to defend President Trump’s tariffs. This move comes as no surprise, given the ongoing trade tensions between the US and other countries, particularly China. The brief is expected to be filed in an upcoming legal challenge to the tariffs, which have been met with opposition from various quarters.

Meanwhile, European bourses opened mixed but are now mostly lower, with underperformance in the RTY. This decline can be attributed to political and fiscal turmoil, which is driving yields higher. The lack of movement on the EZ HICP and USTs awaiting the ISM data only add to the uncertainty in the market.

In other news, crude edges higher despite risk aversion and a firmer dollar, with geopolitical tensions in focus. The Israeli prime minister is holding a meeting to discuss the possibility of full control of the West Bank and measures against the Palestinian Authority, according to Iran International. This development has raised concerns about the potential impact on the region’s political landscape.

Looking ahead, key data releases are expected to provide further insights into the US economy. The US ISM Manufacturing PMI (Aug) and Atlanta Fed GDP will be closely watched, along with speeches from prominent ECB officials, including Elderson, Muller, and Nagel. These updates can help investors gauge the health of the global economy and make informed investment decisions.

The ongoing trade tensions and political developments are likely to continue influencing financial markets in the coming days. As always, it is essential to stay informed and up-to-date on these events to make the most informed investment decisions.