Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
The U.S. dollar slumped to an eight-week low against the yen and hovered near a one-month low versus the British pound as trade war fears eased. Investors are reassessing the Federal Reserve’s rate outlook while the Bank of Japan signals further rate hikes.
By 0140 GMT, the dollar dropped 0.5% to 151.81 yen, extending Wednesday’s 1.1% decline. The yen strengthened following strong wage data and BOJ board member Naoki Tamura’s remarks that rates must rise to at least 1% by late 2025. Markets now expect a quarter-point BOJ hike by September with a 94.8% probability.
Sterling held firm at $1.2509, after touching $1.2550, its highest since January 7, despite a widely anticipated Bank of England rate cut. Market-implied odds for an immediate BoE rate reduction stand at 92%.
The euro remained steady at $1.0401, after a modest 0.2% gain on Wednesday. The dollar index stood at 107.57, near its overnight low of 107.29, after retreating from a three-week peak of 109.88 earlier in the week. U.S. trade tensions eased after last-minute tariff reprieves for Mexico and Canada, although Washington imposed 10% tariffs on China.
The offshore yuan edged up to 7.2775 per dollar, while the Canadian dollar steadied at C$1.4321, near its highest level since December 17. The Mexican peso held firm at 20.5789 per dollar.
Market focus now shifts to Friday’s U.S. payroll report. Traders have priced in a full quarter-point Fed cut by July and 46.3 basis points of easing by December, according to LSEG data. However, diminishing trade-related inflation risks could allow the Fed more policy flexibility.
