Morning Wrap (30.07.2025)

Stock markets across the Asia-Pacific region are experiencing a mixed session. Chinese indices are up between 0.50% and 0.90%, following the extension of the U.S.-China trade truce.

The U.S. dollar has weakened slightly against major currencies. Investors are awaiting today’s Fed interest rate decision and Jerome Powell’s speech. EURUSD is up 0.11% to 1.15590.

China confirmed a 90-day extension of the truce, though U.S. officials say the final "green light" must come from Trump. Talks in Stockholm did not produce a final agreement.

Chinese Finance Minister Lan Fo’an announced increased fiscal stimulus to boost consumption and counter economic pressure. Coordination between central and local investment funds will be improved. The policy shift aims to adapt development strategies to current challenges — markets responded positively.

The main event today is the Fed’s interest rate decision. The first U.S. GDP report for Q2 will also be released.

In Australia, Q2 inflation came in at or below expectations. Headline CPI hit a 4-year low, and core CPI reached its lowest in 3 years. Markets now fully price in a 25bp RBA rate cut on August 11–12. The AUD weakened following the data release.

An 8.8–8.7 magnitude earthquake struck off Russia’s eastern coast, triggering tsunami warnings across the Pacific. Waves up to 4 meters hit Russia's coast, and surges are expected in Japan, China, Hawaii, the U.S. West Coast, and other countries.

Tesla signed a $4.3B agreement with LG Energy for LFP battery supply for U.S. energy storage systems. Production will begin in 2027 at LG’s U.S. facilities.

Samsung may invest $7B in an advanced chip packaging plant next to its Texas factory, focused on AI. SK Hynix is considering expanding DRAM production in the U.S.

SEC approved in-kind creation/redemption of crypto ETFs, allowing direct crypto-to-ETF exchanges. This reduces costs, improves efficiency, and could boost institutional interest.

Visa reported $10.2B in revenue (+14% y/y) and $2.98 EPS, beating expectations. Cross-border volumes rose 12%, and payment volume grew 8%. Consumer spending remains strong despite macroeconomic concerns.

Fidelity expects gold to reach $4,000/oz by the end of 2026, supported by Fed easing, a weak dollar, and central bank purchases.

Trump shortened the ultimatum deadline for peace between Russia and Ukraine to “10–12 days” and reiterated threats of 100% secondary tariffs over lack of progress. He expressed frustration at the lack of an agreement and warned of sanctions on Russia’s trading partners.