Financial Market Newsletter

China’s exports are expanding rapidly, driven by the Artificial Intelligence (AI) boom as well as efforts by Chinese companies to sell more goods overseas amid intense price competition in the domestic market.

The European economy recovered faster than expected in Q2 despite rising energy prices caused by the war between the U.S and Iran.

A report released by the U.S Department of Labor on Friday night showed that the economy added 162.000 jobs in August, a stronger-than-expected result that confirmed the labor market had moved beyond the weakness seen in early summer.

The JPY strengthened by nearly 2% on Thursday, reversing its weakening trend over the past month, as the market increasingly viewed a September rate hike by the Bank of Japan (BOJ) as almost certain and remained alert to potential foreign exchange intervention.

The USD (+0,85%) and U.S Treasury yields both moved higher after the FED Chair signaled late last week that the Federal Reserve may not yet have completed its fight against inflation.

The key inflation gauge in Japan accelerated for a third consecutive month, strengthening the case for the Bank of Japan (BOJ) to raise interest rates again at its upcoming September meeting.

The U.S Personal Consumption Expenditures (PCE) price index remained above the FED’s target, rising by 0,2% in July after declining by 0,1% in June.

Global trade flows rose sharply in June, supported by the boom in artificial intelligence-related investment despite disruptions caused by the Iran war.

The U.S is expected to impose an additional 7,5% tariff on Chinese goods, citing concerns over excess production capacity ahead of a planned summit between the two countries’ top leaders next month.