U.S. stock futures fell slightly, European stocks opened mostly higher, the yen rose about 0.7%, the dollar turned to rise, and Bitcoin rose over 2%
U.S. Treasury Secretary Janet Yellen stated that Japan should raise interest rates to curb inflation. As a result, the Japanese yen rose about 0.7% against the U.S. dollar, marking the largest increase in nearly two weeks. The UK's GDP grew by 0.3% in the second quarter, exceeding expectations, making further interest rate cuts less likely. Following the release of the UK GDP data, the British pound rose slightly against the U.S. dollar by about 0.1%. Yellen also urged the Federal Reserve to cut interest rates, leading to a slight decline in the U.S. dollar and U.S. Treasury yields, although the dollar later turned to rise. Trump stated that if Russia does not agree to a ceasefire, it will face "very serious consequences," escalating geopolitical tensions and causing a slight increase in oil prices
On Thursday, August 14, U.S. stock futures fell slightly by 0.1%, while most major European stock indices opened higher. Due to poor performance in the technology sector, Asian stock markets overall dropped by 0.4%, with the MSCI Asia Technology Index down by 1.3%. U.S. Treasury Secretary Becerra stated that Japan should raise interest rates to curb inflation. As a result, the Japanese yen rose about 0.7%, marking its largest increase in nearly two weeks. The strengthening yen dragged Japanese stocks down by 1.4%.
Becerra also urged the Federal Reserve to cut interest rates. He stated that we are likely entering a cycle of consecutive rate cuts, starting with a 50 basis point cut in September. Additionally, Trump is looking for a successor to Powell and indicated that he might "slightly expedite" the appointment of the next Federal Reserve Chair. As expectations for rate cuts increased, the U.S. dollar and U.S. Treasury yields fell slightly, although the dollar later turned to rise. The Producer Price Index (PPI) set to be released this Thursday will provide more information, as the PPI reflects future consumer prices (CPI) and is crucial for Federal Reserve decision-making.
In other asset news, according to Xinhua News Agency, Trump stated that Russia would face "very serious consequences" if it does not agree to a ceasefire. Geopolitical tensions have intensified, leading to a slight increase in oil prices. Spot gold remained basically flat. Bitcoin rose over 2% in 24 hours, while Ethereum increased over 3% in the same period.
Here are the movements of core assets:
U.S. stock futures fell approximately 0.1% across the board.
Most major European stock indices opened higher. The German DAX30 index rose 0.14%, the UK FTSE 100 index fell 0.19%, the French CAC40 index rose 0.23%, and the Euro Stoxx 50 index rose 0.02%.
The Nikkei 225 index closed down 1.4%. The Tokyo Stock Exchange index closed down 1.1%.
U.S. Treasury yields mostly declined, with both the 2-year and 10-year Treasury yields falling by more than 1 basis point.
The U.S. dollar index turned to rise after previously falling nearly 0.2%. The yen rose about 0.7%. The euro fell about 0.1%.
UK GDP grew by 0.3% in the second quarter, exceeding expectations, making further rate cuts seem increasingly distant. Following the release of the UK GDP data, the pound rose slightly against the dollar by about 0.1%.
Spot gold rose over 0.5% in early Asian trading to above $3,370, with the current increase narrowing to 0.2%. New York futures gold remained flat around $3,410.
Spot silver rose over 0.6% in early Asian trading but remained basically flat. New York futures silver fell slightly by about 0.2%.
U.S. oil rose over 0.4% to above $62.20. Brent oil rose over 0.5% to around $66.
Bitcoin rose over 2% in 24 hours to above $121,800
Ethereum's 24-hour increase exceeds 3% to above $47.7 million.
Bessent's comments on the Bank of Japan are rare. Rodrigo Catril, a strategist at the National Australia Bank, stated that when Bessent speaks, the market listens seriously, and now he wants a stronger yen. At least in recent days, the market seems to be paying more attention to Bessent's remarks, and the core message he conveys is—to weaken the dollar.
According to the latest survey of observers of the Bank of Japan, about 42% expect Japan to raise interest rates in October, while one-third expect it to be in January next year. In the next meeting on September 19, the Bank of Japan is expected to maintain its policy.
Rabobank's strategist in London wrote in a report that the Federal Reserve may adopt a more dovish stance next year, especially if Powell decides not to continue as a governor after his term ends.
U.S. stock futures fall, dollar turns to rise, crude oil slightly up
U.S. stock futures fell about 0.1% across the board.
The dollar turned to rise after earlier declines.
Spot gold rose slightly over 0.2%.
U.S. oil rose over 0.4%.
