- Stocks in the APAC region are mostly trading lower after yesterday's weaker session on global markets, despite Friday's positive reaction to Powell's comments.
- European index futures suggest a lower opening. The Euro Stoxx 50 futures contract (EU50) is currently down nearly 0.4%.
- The EUR/USD exchange rate remains above 1.16; USD/JPY is around 148. The euro is currently the best performing currency, while the NZD is experiencing increased declines.
- Trump threatened additional tariffs on countries imposing digital taxes or regulations deemed discriminatory against US technology companies. If these measures are not withdrawn, the US will impose export restrictions on technology and semiconductors, as well as tariffs on exports from these countries to the US.
- President Trump publicly announced the immediate dismissal of Lisa Cook from her position as a member of the Federal Reserve Board (Fed).
- Lisa Cook rejected the allegations, stating that there were no grounds for her dismissal and that she did not intend to resign; the President has no formal authority to dismiss her. Cook intends to continue performing her duties at the Fed.
- The RBA continues to see significant risks arising from US tariff policy in its Minutes, although the worst-case scenarios have been avoided so far.
- The RBA Board assessed that there may be a need for further interest rate cuts over the coming year – there are arguments for both a gradual and a faster pace of easing.
- The situation on the labor market remains moderately tense, inflation is slightly above target, and domestic demand is growing. The current monetary policy is described as moderately restrictive; there is discussion as to whether a gradual or faster cycle of cuts would be better – the decision depends on data coming in from global economies.
- The RBA considered accelerating the pace of its bond portfolio reduction, but this was deemed unnecessary at this time.
- At the beginning of the day, we are seeing widespread declines in the energy commodities market (natural gas and crude oil), while precious metals are gaining on the back of continuing market uncertainty.
- Today's events include: US durable goods orders (July), Conference Board consumer confidence index (August), Atlanta Fed GDP forecast, Riksbank minutes, NBH decision (Hungary), talks on Iran's nuclear program, speeches by Fed and BoE members, bond auctions in Italy and the US.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
