- On Wednesday, Japan's Nikkei 225 and Topix ended the session at new records, rising 1.5% and 0.9%, respectively. Hang Seng added 1.9%, supported by optimism in the real estate sector and consumer subsidies in China. Most stock exchanges in the region followed Wall Street's records, where the S&P 500 and Nasdaq closed at their highest levels ever.
- The S&P 500 (+1.13%) and Nasdaq (+1.39%) continued their record gains, driven by expectations of a Fed interest rate cut in September. US Treasury Secretary Scott Bessent even suggested the possibility of a 50bp cut as early as next month, citing a weakening labor market.
- Euro Stoxx 50 futures are up about 0.3% ahead of the cash market opening in Europe. The upward trend is also visible in US contracts, but on a much smaller scale.
- The US dollar continues to consolidate after declines triggered by CPI data. The DXY index fell to 97.1. EUR/USD stopped below 1.1678. USD/JPY (+0.11%) rebounded above 148.10 in response to weakening producer inflation in Japan.
- Japanese producer inflation (PPI) slowed in July, +0.2% m/m and +2.6% y/y, below the growth rates seen in May and June. The declines in readings suggest cost pressures on producers and subdued prospects for consumer price growth.
- In Australia, wage growth in the second quarter slightly exceeded forecasts, reaching 3.4% y/y compared to the expected 3.3% and maintaining the growth rate from the first quarter. The result, higher than the RBA's forecasts, may fuel concerns about persistent inflationary pressure and dampen expectations for deeper interest rate cuts, even despite a decline in quarterly wage growth from 0.9% to 0.8%.
- The US and China have agreed on another round of trade talks in two to three months, although the lifting of tariffs on Chinese goods will depend on progress in curbing the flow of fentanyl.
- China will impose a temporary anti-dumping duty of 75.8% on Canadian rapeseed imports starting Thursday, escalating a trade dispute that began after Ottawa imposed tariffs on Chinese electric vehicles last year.
- Markets are awaiting final CPI readings from Germany and Spain, the publication of the Bank of Canada minutes, and speeches by Fed representatives.
- Sentiment on the crypto market can be described as mixed. Although Bitcoin prices are down 0.5% this morning, Ethereum is resuming its dynamic upward momentum and gaining 1.45%.
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