European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Fed Unveils Stablecoin Rules Under GENIUS Act 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
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Asian stock markets climbed on Friday, mirroring Wall Street gains, as expectations of multiple U.S. Federal Reserve rate cuts lifted investor sentiment worldwide. Lower borrowing costs are seen as a major relief for global bond markets, while the U.S. dollar eased slightly.
Indexes in Japan, South Korea, and Taiwan hit record highs, supported by optimism around artificial intelligence earnings. Japan’s Nikkei rose 0.6% for the day and 3.7% for the week, while South Korea jumped 1.1%, adding more than 5% weekly. Chinese blue chips reached their strongest levels since early 2022, while MSCI’s Asia-Pacific index excluding Japan gained 1.2%.
The latest U.S. inflation data showed consumer prices staying moderate, reinforcing expectations of policy easing. Analysts at Citi now forecast core PCE inflation holding at 2.9% in August, supporting their outlook for 125 basis points of Fed cuts over the next five meetings. Markets are pricing in a 100% chance of a September cut to 4.00%-4.25%, with a strong likelihood of additional reductions this year. U.S. Treasury yields fell 20 basis points in two weeks, easing mortgage rates and boosting risk appetite.
European shares also rallied, with EUROSTOXX 50, FTSE, and DAX futures up 0.3%. The European Central Bank kept rates unchanged, calling policy “in a good place.” Analysts at JPMorgan expect a possible cut in December, though markets see limited odds of further easing.
In currency trade, the dollar held at 147.23 yen, while the euro firmed near $1.1730. Gold stayed steady at $3,633 an ounce, just below record highs. Oil prices weakened, with Brent at $66.09 and U.S. crude at $62.07, after the IEA warned of a record surplus in 2025 as OPEC output rises.
