Headlines:Equities stay upbeat ahead of big tech earningsUSD/JPY struggles with what to make do of US-Japan trade dealJapan bond yields jump higher on trade deal with the USJapan PM Ishiba refutes reports about his resignationTraders ramp up bets on a BoJ rate hike by the end of the yearIshiba's last ditch attempt?US Bessent: Trump has said he's not going to fire PowellUS Bessent: Talks with the EU are going better than they had beenEU trade commissioner Sefcovic set to speak to US commerce secretary Lutnick later todayEU's von der Leyen: EU and Japan to work more closely to address unfair tradeUS MBA mortgage applications w.e. 18 July +0.8% vs -10.0% priorMarkets:NZD leads, EUR lags on the dayEuropean equities higher; S&P 500 futures up 0.4%US 10-year yields up 2.8 bps to 4.363%Gold down 0.1% to $3,428.82WTI crude down 0.7% to $64.87Bitcoin down 1.0% to $118,578Markets are continuing to rejoice on the US-Japan trade deal, whilst turning a blind eye towards the political uncertainty in Tokyo for now.Japan prime minister Ishiba managed to secure a trade deal with the US in a last ditch attempt to stave off political pressures but his fate might already be sealed. He offered concessions on agriculture and that might be a sticking point in trying to bring home the deal back in parliament. So, we'll see.But for now, markets are taking it as though the deal is signed, sealed, and delivered. And that is seeing equities rip higher amid hopes that there will be better prospects for the global economy.Japan's Nikkei 225 index rallied by 3.5% and that helped to keep the mood in Europe upbeat. Major indices in the region are all higher with French stocks leading the charge with over 1% gains. The DAX is also seen up 0.6% as European equities pare losses from the first two days this week.US futures are also sitting higher, with S&P 500 futures up 0.4%. Tech shares will be eyeing the post-market agenda though, with Alphabet and Tesla set to report Q2 earnings after the close.In FX, the dollar is sitting more mixed as traders are digesting the trade news. USD/JPY is being sent for a ride with the pair rising to 147.20 early on in the day before falling back now to 146.20, down 0.3%. Traders seem to be skeptical at first of the deal, with worries mounting on the political scene back in Tokyo.But as Ishiba refuted reports that he is not resigning - for now at least - that is helping the yen to keep the calm.Meanwhile, EUR/USD is down 0.2% to 1.1725 while USD/CAD is down 0.2% to 1.3578. It is the commodity currencies that are running higher amid the better risk mood though, with AUD/USD up 0.7% to 0.6600 - its highest since November last year.In other markets, Japan's bond yields are surging after the trade deal was reported. But it remains to be seen how much of that is also a mix of political risk premium, not just better prospects of the BOJ hiking rates. 10-year yields are up 9 bps to 1.59%, testing the highs for the year.In the commodities space, gold is down marginally as it cools a little after the jump higher yesterday. Meanwhile, Bitcoin and Ethereum are also taking a breather as cryptocurrencies continue to hang at the highs following the surging run last week. This article was written by Justin Low at investinglive.com.