Morning Wrap (18.07.2025)

Asian stock markets rise on Wall Street gains. Global sentiment is improving thanks to technological optimism and hopes for fiscal stimulus.

Bitcoin climbs to $120,600, and other cryptocurrencies post even larger gains after Donald Trump announced he is preparing to sign an executive order that would allow retirement savings from 401(k) accounts to be invested in alternative assets such as cryptocurrencies, gold, or private equity.

The executive order potentially opens the door for funds worth over $9 trillion to invest in Bitcoin and instructs regulators to analyze obstacles hindering such investments.

Fed Governor Christopher Waller publicly supported a 25 bps rate cut in July, citing weakening labor market data and growing risks to economic growth. He called the impact of tariffs on inflation “transitory.” His dovish remarks triggered a weakening of the U.S. dollar.

Currently, only Waller and Bowman openly support a July rate cut. The Fed’s media blackout period is about to begin, limiting further public commentary.

The U.S. dollar weakened and is one of the weakest currencies in the first half of the day, just behind the Japanese yen (JPY). The euro (EUR), Australian dollar (AUD), and New Zealand dollar (NZD) are gaining the most against the USD.

Japan’s June inflation data came in at 3.3% for both the headline and core measures — significantly above the Bank of Japan’s 2% target.

The Chinese central bank injected 1.3 trillion yuan into the banking system to ease liquidity pressures related to tax deadlines and government bond issuance.

The Wall Street Journal published allegations concerning Donald Trump’s personal ties to Jeffrey Epstein, including claims of “sharing secrets.” Trump announced a lawsuit against the newspaper and Rupert Murdoch. He also ordered limited disclosure of documents related to the scandal.

After Senate approval, Trump signed a bill cutting $9 billion in spending — mainly targeting public media and foreign aid. The administration indicated this could be just the beginning of further cuts.