US and China extended their tariff truce for 90 days, lifting Asian stocks and sending Japan’s Nikkei to a record high. Australia’s business confidence hit a three-year peak ahead of an expected RBA rate cut, while China flagged new consumer and service-sector loan support measures.
- JPMorgan sees stagflation signs as tariffs lift prices and US growth, jobs slow
- China to outline subsidized loan policies for consumers and service sector on August 13
- Trump, South Korea’s Lee to meet in Washington on Aug 25 – security and economic issues
- Australian data – July business confidence 7 (vs. prior 5)
- China eases export curbs, lifts measures on 12 US firms and signals case-by-case licences
- PBOC sets USD/ CNY central rate at 7.1418 (vs. estimate at 7.1901)
- Monetary Authority of Singapore says policy remains appropriate, MAS well placed on risks
- Trump taps EJ Antoni to head BLS, sparking concerns over partisanship and expertise
- Japan benchmark share price indexes, Nikkei and Topix, have both hit all-time highs
- Singapore Q2 GDP +4.4% y/y (vs. 4.3% expected) & +1.4% q/q
- Trump just confirmed his can-kick TACO – extends China tariff pause for another 90 days
- GBP to fall against EUR and USD – pick your poison. BoE to cut again and again and again.
- UK retail sales rise in July, driven by warm weather and higher food prices
- MUFG warns hot CPI could derail Sept Fed cut. Dollar jumps, sparking leak speculation.
- How’s this for a dual mandate? Citi says CPI may give Fed a migraine in both temples.
- JPMorgan warns on ugly coming price of stagflation – could cap bond gains (& weigh on USD)
- Goldman Sachs say consumers going to get slammed, tariff price rises to jump a further 70%
- investingLive Americas FX news wrap 11 Aug:Modest changes in the markets ahead of CPI data
- BoA says a Fed Sept rate cut not justified, cite inflation stuck above target, tariff hike
- US stocks close lower. Nasdaq trades to a new intraday high before rotating lower
The United States and China on Monday agreed to extend their tariff truce for another 90 days, averting the imposition of triple-digit duties on each other’s goods. President Trump confirmed via his social media platform that he had signed an executive order delaying higher tariffs until November 10, with all other elements of the truce left intact.
China’s Commerce Ministry issued a matching announcement early Tuesday, also postponing for 90 days the planned addition of US firms to trade and investment restriction lists — measures first outlined in April.
Asian equities rallied on the news, with Japan’s Nikkei and Topix hitting a record high.
In Australia, business confidence climbed to a three-year high (+7) on strength in services and construction, though retail prices rose 1.1%. Later today, the Reserve Bank of Australia is expected to cut its cash rate by 25 basis points.
- Reserve Bank of Australia expected to cut its cash rate this week by 25bp
- RBA poised to cut cash rate tomorrow after July pause
Separately, China will hold a press conference at 10 a.m. local time on August 13 to outline new subsidised loan policies aimed at boosting household consumption and supporting the service sector.
In Washington, Trump nominated a new head of the Bureau of Labor Statistics — the agency responsible for publishing US non-farm payrolls and CPI data.
Asia FX was mainly rangebound ahead of the US inflation data due at 0830 US Eastern time. The USD weakened just a tiny amount, giving back little of its Monday’s gains. .
Asia-Pac
stocks:
- Australia
(S&P/ASX 200) +0.14% - Hong
Kong (Hang Seng) +0.12% - Japan
(Nikkei 225) +2.45% - Shanghai
Composite +0.48%
This article was written by Eamonn Sheridan at investinglive.com.