- Market sentiment in equities remains positive today, with investors largely unfazed by yesterday’s hotter-than-expected U.S. PPI reading, which showed the sharpest increase in two years (services up 1.1% m/m, and producer prices up 0.9%).
- U.S. indices are rising; the US30 is up more than 0.5%, hitting a new all-time high at 45,352 points. The VIX opened with a nearly 17% upward gap following contract rollover. The US retail sales July report is set to release at 12:30 PM GMT
- The main event of the day is the meeting between Donald Trump and Vladimir Putin in Alaska, though the first official comments from the summit are not expected until around 9:30 p.m. Warsaw time.
- The U.S. dollar is easing slightly after yesterday’s gains, and the market is now less certain about a 25 bps rate cut in September. Trump mentioned that the United States is considering purchasing an unspecified stake in Intel, prompting the stock to jump several percent. According to unofficial sources, the goal would be to support domestic chip production and establish a hub in Ohio — a project Intel has promised for years.
- A similarly positive mood is seen in Europe, where major indices, including Germany’s DAX, are advancing. Asian benchmark futures are mixed: the JP225 is up more than 1%, while Chinese indices are down after weaker than expected macro data from the economy
- In July, China’s retail sales rose 3.7% y/y, below forecasts of 4.6% and the previous reading of 4.8%. Industrial production increased 5.7% y/y, compared with expectations of 6% and 6.8% in June. The unemployment rate climbed to 5.2%, up from 5% in June and above the 5.1% forecast. Fixed-asset investment in urban areas grew 1.6% y/y, missing expectations of 2.6% and down from 2.7% in June.
- Bitcoin is up 1%, with Cardano, Dogecoin, and Avalanche among the best performers in the crypto market. Ethereum has rebounded over 4% after yesterday’s drop, returning to $4,660. U.S. Treasury Secretary Bessent said the government’s Bitcoin holdings will serve as a strategic reserve.
- Natural gas is gaining more than 1%, while oil is edging lower. Volatility in agricultural commodities and industrial metals is very limited. In precious metals, platinum stands out, rising more than 0.7%.
- Yesterday, Donald Trump said that Brazil is a “very bad” trade partner for the U.S., while Mexico and Canada “will do whatever the United States wants them to do.” He also stated that if the summit with Russia goes well, a second meeting will be organized quickly — possibly with European politicians involved.
- Japan’s trade negotiator, Akazawa, said the country is suffering severe consequences from U.S. tariffs, and the government will publish a report on the matter in mid-September. Similarly, a Fitch report noted that Japanese and South Korean automakers have been adversely affected.
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