Asia shares slip as investors remember the drag of tariffs. Asia shares eased on Tuesday while the euro nursed its losses as investors pondered the downside of the U.S.-EU trade deal and the reality that punishing tariffs were here to stay, with unwelcome implications for growth and inflation. The initial relief over Europe's 15% levy quickly soured when set against the 1% to 2% that stood before President Trump took office. Leaders in France and Germany lamented the outcome as a drag on growth, pulling down stocks and bond yields across the continent while slugging the single currency.

Fidelity Says $4,000 Gold Possible as Fed Cuts and Dollar Drops. Gold could hit $4,000 an ounce by the end of next year as the Federal Reserve lowers interest rates to cushion the US economy, the dollar drops, and central banks keep expanding holdings, according to Fidelity International. Non-yielding bullion typically benefits when the greenback softens and interest-rates ease.

An ECB economist has warned of the risks of dollar-pegged stablecoins for Europe. Stablecoins such as Tether (USDT) and Circle (USDC) are gaining popularity due to the convenience of cross-border transfers and the ability to bypass the traditional banking system. The economist is particularly concerned about the emergence of interest rates on stablecoins, which makes them similar to money market funds and could lead to an outflow of deposits from European banks. This would significantly complicate borrowing and reduce banks' ability to lend to the eurozone economy. It is expected that, thanks to the new regulatory regime in the US, the turnover of stablecoins could grow from the current $230 billion in 2025 to $2 trillion by the end of 2028.

Equities close lower as earnings weigh; Fed statement on tap. Earnings have been a bit of a mix. Economic data has been somewhat mixed too, but not enough to move the needle in terms of the Fed. The next two days, you have Microsoft, Meta, Apple, Amazon - those are big companies, and they will move markets depending on how the earnings are and how the outlooks are.

Apple Shift Turns India Into World’s Top Maker of US Smartphones. In the quarter through June, India was the largest manufacturer of smartphones shipped to the US for the first time, accounting for 44% of the market, according to Canalys data. Vietnam, home to much of Samsung Electronics Co.’s production, came in second. China fell from having more than 60% of all estimated shipments a year ago to just 25%.

High-income Americans have begun to delay loan payments more frequently. Over the past two years, the proportion of such debtors in the US has increased by almost 20%. The difficulties arose because the post-pandemic model of economic growth in the US was largely based on large purchases made by wealthy citizens, including real estate, cars, and vacations. Now, according to Bloomberg, this model is under threat: in the first quarter of 2025, consumer spending was at its lowest since the start of the pandemic, and April and May saw a further decline in spending on leisure and travel.

Equities retreat as Powell dampens Fed Sept cut hopes. U.S. stocks closed well off earlier highs after a choppy session on Wednesday, as Federal Reserve Chair Jerome Powell chilled expectations the central bank might be poised to cut rates at its September meeting. Megacap companies Microsoft and Meta Platforms were both up more than 6% in extended trade after reporting quarterly results while investors were still awaiting earnings from Amazon and Apple on Thursday.

Bank Indonesia Intervenes as Rupiah Hits Weakest in One Month. The central bank intervened in the domestic markets through spot, non-deliverable forwards and government bond purchases, as well as in the offshore NDF. The rupiah moves in line with other regional currencies which have weakened mainly on broad-based US dollar gains following the Fed’s relative hawkish decision to maintain the FFR, as well as recent data of US strong economy amid Trump’s tariffs. This could potentially impact risky assets, including EM currencies.

Equities stall as early enthusiasm ebbs; Amazon, Apple earnings due. U.S. stocks closed lower on Thursday as early gains faded, following the latest round of corporate earnings and economic data, as investors awaited results from megacaps Amazon and Apple due after the closing bell. Of the 297 companies in the S&P 500 that have reported earnings through Thursday morning, 80.8% have topped analyst expectations, according to LSEG data, compared with the 76% beat rate over the past four quarters.

Goldman Urges Caution as Global Credit Spreads Hit 2007 Lows. The yield premium on global investment-grade notes tightened to 79 basis points on Thursday, the lowest since July 2007 — just before the global financial crisis — according to a Bloomberg index. Goldman economists still expect the Fed to cut interest rates by 25 basis points in September, October, and December, followed by two more in 2026, according to the report. The Fed this week also downgraded its view of US growth, citing moderating economic activity.

Shares find support in Asia as lower rates priced in. Share markets found some much needed support in Asia on Monday as the prospect of lower borrowing costs helped soothe concerns about the U.S. economy, though the long-term credibility of U.S. policy remained in doubt. A buy-the-dip mentality led to a bounce in Wall Street and European stock futures, and allowed the dollar to stabilise after Friday's payrolls-induced retreat. Oil prices extended their latest slide as OPEC+ agreed to another large rise in output for September, which completely reverses last year's cuts of 2.2 million barrels per day.

Investor-Tax Hike Plan Faces Growing Opposition in South Korea. The announcement of the planned tax hikes sent Korean stocks tumbling the most since April, with a 3.9% Friday drop in the Kospi, one of the world’s hottest indexes this year. The proposal, which lowers the threshold of capital gains tax on stock holdings to 1 billion won ($722,000) from 5 billion won, was initially thought to have a smooth path to acceptance, only to facing a wall of criticism from retail investors.