Global Markets:
- Asian Stock Markets : Nikkei up 3.67%, Shanghai Composite up 0.75%, Hang Seng up 1.19% ASX up 0.78%
- Commodities : Gold at $3435.35 (-0.19%), Silver at $39.58 (0.49%), Brent Oil at $68.59 (0.19%), WTI Oil at $65.38 (0.43%)
- Rates : US 10-year yield at 4.367, UK 10-year yield at 4.5710, Germany 10-year yield at 2.5880
News & Data:
- (USD) Richmond Manufacturing Index -20 to -2 expected
Markets Update:
Japanese stocks rallied to a one-year high on Wednesday after a trade deal with the U.S. lowered auto tariffs to 15%, boosting optimism across Asian markets. The Nikkei surged over 3%, with automakers like Mazda and Toyota jumping 17% and 13.6% respectively. South Korean auto shares also gained on hopes of a similar U.S. deal.
President Trump confirmed the U.S.-Japan deal and a separate agreement with the Philippines imposing a 19% tariff. He also noted that EU officials would visit Wednesday for talks, lifting EUROSTOXX 50 futures by 1%. Wall Street futures rose 0.1%.
Saxo strategist Charu Chanana called the Japan deal a mild positive surprise, providing short-term relief and helping Japan avoid further tariff hikes. She added that the expected resignation of Prime Minister Ishiba—facing internal criticism—could pave the way for more market-friendly leadership.
Elsewhere, Chinese blue-chip stocks rose 0.46% and Hong Kong’s Hang Seng climbed 0.7%. Talks between U.S. and Chinese officials are set for next week in Stockholm to potentially extend their August 12 trade deadline.
In the U.S., markets closed mixed as corporate earnings revealed trade war impacts. GM fell 8.1% after a $1B tariff hit. Meanwhile, oil and gold prices held steady, and U.S. bond yields rose slightly amid continued pressure on the Fed from Trump.
Upcoming Events:
- 07:30 PM GMT – USD Existing Home Sales
- 08:00 PM GMT – USD Crude Oil Inventories
