Asian shares dropped as traders trimmed interest-rate cut bets by the Federal Reserve after US inflation data showed companies are beginning to pass some tariff-related costs to consumers. The MSCI regional gauge dropped 0.1% while a gauge of technology shares in Hong Kong rose 0.6% on optimism about the resumption of some specific chip shipments to China. Taiwan Semiconductor Manufacturing Co. rose as much as 1.8% in Taipei after a report said the company plans to build a second chip plant in Japan. Contracts for the S&P 500 and the Nasdaq 100 dipped 0.1%. Treasuries steadied after 30-year yields topped 5% in the prior session. The yen weakened 0.1%, hovering around levels last seen in April. Gold edged higher. Traders priced in lower odds that the Fed will cut rates more than once this year, and the probability of a move in September is now seen as only slightly higher than 50%. While policymakers will likely need to hold rates steady for a bit longer to fully cool inflation, it’s also possible they may need to pivot to cutting if inflation and labor markets soften, Fed Dallas President Lorie Logan said. Traders this month have whittled the odds of Fed easing. Strong June employment data released July 3 led them to rule out a cut after the next meeting concludes July 30 and to downgrade the chances of a September cut, which was fully priced in as recently as late June. The consumer price index, excluding the often volatile food and energy categories, increased 0.2% from May. While a decline in car prices helped keep a lid on the figure, goods categories exposed to the levies including toys and appliances rose at the fastest paces in years. Also, Treasury Secretary Scott Bessent suggested that Fed Chair Jerome Powell should step down from the board when his term is up in May 2026. Kevin Hassett, one of President Donald Trump’s longest-serving economic aides, is the early frontrunner to replace Jerome Powell as the Fed chief next year, according to people familiar with the process. Meanwhile, Trump said he reached a deal with Indonesia that will see goods from the country face a 19% rate, while US exports won’t be taxed. The deal is a “huge win” for the country’s labor-intensive sectors such as garments and footwear, National Economic Council member Heriyanto Irawan said in a Bloomberg TV interview. Asian pharmaceuticals stocks slid as Trump said he was likely to impose tariffs on pharmaceuticals as soon as the end of the month and that levies on semiconductors could come soon as well, suggesting that those import taxes could hit alongside broad “reciprocal” rates set for implementation on Aug. 1. The president also predicted that he could strike “two or three” trade deals with countries before implementing his so-called reciprocal tariffs before they are implemented on Aug. 1, saying that an agreement with India was among the most likely. Separately, the optimism in technology stocks came after Nvidia Corp. received assurances that the US government would allow it to export sales of its H20 artificial intelligence accelerator to China. That’s a dramatic reversal from the earlier stance of the Trump’s administration. The development is positive for the AI semiconductor supply chain and also for US-China relations as the two countries discuss tariff levels. China’s open-source AI is a catalyst for global progress and that Chinese AI models are “world-class”, Nvidia’s CEO Jensen Huang said in a speech at the China International Supply Chain Expo’s opening ceremony. US After Hours BHF +8.4% higher on WSJ report that Aquarian in talks to acquire BHF; VCTR +5.2% to join S&P SmallCap 600; HWC -1.6%, JBHT -1.2% lower on earnings.
Nikkei +0.10% Hang Seng +0.13% CSI -0.34% Shanghai -0.17% Shenzen +0.13%
Eur$ 1.1619 CNH 7.1837 CNY 7.1805 JPY 148.95 GBP 1.3396 CHF 0.8014 RUB 78.0000 TRY 40.2584 WTI$ 66.78 +0.36% Gold 3,337.50 +0.39% BTC 117,900 +1.22% ETH 3,145 +3.36%
S&P -0.16% Nasdaq -0.19% EuroStoxx -0.39% FTSE +0.03% Dax -0.52% SMI +0.02%
Macro :
- Europe’s Pharma Stocks May Fall as Trump Sees Tariffs by August
- Trump’s Energy Chief Plans Creative Deals to Refill Oil Reserve
- Germany and France Vow to Help Europe’s Startups Tap Financing
- NATO Chief Warns China, India and Brazil Over Russia Links
- UK Doesn’t Know How Much Billionaires Pay in Taxes, MPs Say
- NBA to Explore Expansion for First Time in 20 Years
Keep an eye on :
- ADUEN NA : Global Payments Shares Rise On FT Report on Hedge Fund Stake
- ALMB DC : Alm Brand 2Q Pretax Profit Beats Estimates
- ASML NA : ASML 2Q Bookings Beats Estimates
- ATEA NO : Atea 2Q Ebit Rises to NOK268m; Sees 10% Sales Growth in 2025
- Atletico de Madrid : Apollo in Talks with Spanish Football Club Atletico: Expansion
- BAR BB : Barco 1H Ebitda Beats Estimates
- BAKKA NO : Bakkafrost Prelim 2Q Operating Ebit Misses Estimates
- BA US : Trump Says Indonesia Will Buy 50 Boeing Jets
- BA/ LN : BAE Confident to Win Up to 150 New Typhoon Jet Export Orders
- CEC GY : Ceconomy Prelim 3Q Adjusted Ebit Loss EU31M
- DeepGreen X : DeepGreenX Registers 93.7M Shares for Nasdaq Direct Listing
- DNO NO : DNO Says Production at Kurdistan Fields Temporarily Suspended
- EDF FP : EDF Considers Sale of Stake in North America Renewables: Echos
- FIA1S FH : Finnair 2Q Net Sales Miss Estimates
- FPE GY : Fuchs Cuts FY Revenue Forecast
- GS US : Goldman’s Rousse to Lead New Trading Unit Catering to Insurers
- GPN US : Global Payments Shares Rise On FT Report on Hedge Fund Stake
- SHBA SS : Handelsbanken 2Q Net Interest Income Misses Estimates, Handelsbanken Misses Estimates as Strong Krona Weighs on NII
- IMPN SW : Implenia Holder Rudolf Maag Offers 1M Shares via UBS: Terms
- JOBY US : Flying Taxi CEO Is Billionaire Again After Stock’s 160% Rally
- LSEG LN : UK Government to Set Up IPO Taskforce in Bid to Attract Listings
- MSFT US : OpenAI Preps ChatGPT Agents in Challenge to Microsoft Excel and PowerPoint
- MIPS SS : Mips 2Q Net Sales Meet Estimates
- NFE US : New Fortress Energy Executes 5-Year Charter for Energos Winter
- NSKOG NO : Norske Skog Pauses Pulp Production Plans Amid Challenging Market
- NVDA US : US Shouldn’t Be Selling Its Best Chips to China, Sacks Says
- NVDA US : Nvidia’s Huang Says Chinese AI Models Are ‘World-Class’
- NVDA US : Nvidia Boss Expects to Get First H20 China Export Licenses Soon
- ONTEX BB : Ontex 1H Adjusted Ebitda Misses Estimates
- PHGN SW : Partners Group Assets Under Management $174.4B
- PUM GY : Manchester City Signs Puma Extension Worth Record $1.5B
- RNO FP : Renault FY Operating Margin Forecast Misses Estimates
- RNO FP : Renault Profit Warning May Not Be Last in Sector: Street Wrap
- CFR SW : Richemont 1Q Sales at Constant Exchange Rates Beat Estimates
- RIO LN : Rio Tinto 2Q Pilbara Ore Shipments Misses Estimates
- SAN FP : Sanofi’s SAR446597 Gets Fast Track Designation in US
- SEBA SS : SEB 2Q Net Interest Income Beats Estimates, Lender SEB’s Net Interest Income Beats Estimates on Loan Growth
- SHEL LN : Shell Discusses Possible Return to Syria With Energy Minister
- 4X0 GY : Steyr Motors Sees Record Order Backlog After New Contract
- TSLA US : Musk SpaceX Share Sale to Value Company at About $400 Billion
- WBD IM : Webuild Unit Lane Gets $337M Contract in US