- 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 If these measures are not withdrawn, the US will impose export restrictions on technology and semiconductors, as well as tariffs on exports from these countries to the US.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.
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