Tariff truce extended, economic data next
LONDON : Japanese stocks scaled all-time highs and other regional share markets rose with the tide, buoyed by an extension of a tariff truce between the world's two largest economies.
Investor attention turns now to US and UK economic data today that will set the tone for monetary policy.
The US and China agreed to another 90 days to hammer out a trade deal, staving off triple-digit duties on each other's goods and removing some uncertainty, although markets broadly expected the move.
Australian stocks stayed near a record high hit earlier in the day while the Aussie eased as traders digested the widely expected 25-basis-point rate cut from the Reserve Bank of Australia.
Less than a week after a divided Bank of England (BoE) cut interest rates, investors will get a fresh view of the state of the UK labour market with British pay growth in July expected to stay steady at 5%.
Yesterday's data showed hiring intentions by British businesses fell to their weakest since the Covid-19 pandemic and recruiters said starting pay was rising at the slowest pace in over four years.
Four of nine BoE policymakers opposed its quarter-point interest rate cut to 4% last week and they are likely to need further convincing that domestic inflation pressures are easing.
Traders are no longer pricing in another rate cut this year.
That possibly leaves sterling on firmer footing, but with British growth and its economy still a concern and the pound already up over 7% this year, speculators have ramped up their bearish positions on the currency.
Weekly data from the US commodity futures trading commission shows speculators have short positions on the pound to the tune of US$2.78 billion, a swift turnaround from the bullish positioning that had prevailed since February.
The US inflation report later today will also be key, as investors parse through the data to better understand the impact of Trump's tariffs and how that influences the Federal Reserve's rate cut path.
Key developments that could influence markets today include economic events such as UK labour and wage data for June and Germany ZEW economic sentiment for August.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
an hour ago
- New Straits Times
Hong Kong arrests two over suspected US$6.7mil water scam
HONG KONG: Hong Kong police said Monday they had arrested two people over a suspected scam involving a water supplier that may have cheated the government in a contract worth nearly US$7 million. A company named Xin Ding Xin won a deal in June to provide 1.88 million bottles of water for dispensers in some government offices – the first time such a contract went to a Chinese brand, according to local media. But police said the firm was found to have relied on false documents during the tender process, claiming to source its water from another mainland Chinese supplier when in fact they had no business ties. Officers arrested a 61-year-old man and a 57-year-old woman for fraud on Sunday, seizing around 2,600 bottles of water in a warehouse along with documents and electronic devices. The arrests have prompted water-cooler discussions across the Chinese finance hub on how bureaucrats missed the tell-tale signs of a scam when awarding a 36-month contract worth HK$52.9 million (US$6.77 million). Payment for the delivered batches has not yet been settled, according to police. The Government Logistics Department said on Monday that it had terminated its bottled water supply contract with Xin Ding Xin, as well as "three other contracts for the supply of chemicals which were affiliated with XDX's owner." Christopher Hui, Hong Kong's Secretary for Financial Services and the Treasury, set up a dedicated task force following an urgent meeting on Sunday. Hui also ordered "remedial actions" and invited the Audit Commission to review the tender exercise. "The incident has raised concerns among government colleagues and drawn extensive attention from the public," he said in a press release. Aside from the two arrests on Sunday, one mainland Chinese man remains at large, police said.
New Straits Times
3 hours ago
- New Straits Times
Bursa CEO: Malaysia's capital market resilient, poised for growth
KUALA LUMPUR: Malaysia's capital market remains resilient and well-positioned for growth, Bursa Malaysia chief executive officer Datuk Fad'l Mohamed said. This is supported by strong fundamentals, proactive policies and rising opportunities in strategic sectors. "The strong momentum of initial public offerings (IPOs) reflects the confidence of Malaysian businesses, as they expand and tap the capital market to power their next phase of growth," he said on the sidelines of Invest Malaysia 2025 series (IM 2025) in Singapore today. As at Aug 1 this year, Bursa Malaysia had 39 IPOs listed, a 39 per cent increase year-on-year compared to the same period in 2024, said Fad'l. It maintained lead position in the Asean region for total number of IPO listings, and total IPOs funds raised," Fad'l said. "This demonstrates a thriving market where companies are growing, creating value and offering opportunities for investment. "As a multi-asset exchange, Bursa Malaysia remains committed to enhancing the vibrancy and depth of our markets, to support Malaysia's economic momentum and propel its competitiveness globally," he added. Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, in his keynote address highlighted that shifting global trade dynamics are reshaping supply chains. This suggests that open economies such as Malaysia and Asean need to be responsive and build resilience. He outlined Malaysia's priorities as Asean chair to strengthen regional resilience and position the region as an investible asset class, while calling for deeper regional economic integration to safeguard the region's growth trajectory in an increasingly fragmented global economy. Tengku Zafrul continued his insights in a fireside chat moderated by Fad'l where the conversation turned to how Asean and Malaysia can navigate external shocks from US-China tariff tensions. He elaborated that there is potential for the region to turn these disruptions into opportunities to position itself as a base for global manufacturers seeking stability and resilience. Malaysia, in particular, has strengthened its edge against regional peers This is supported by disciplined industrial and economic reforms, the development of high-tech hubs in Penang and Kedah, as well as special economic zones aimed at attracting strategic investments in electrical & electronics, EVs, and advanced manufacturing. Tengku Zafrul added that the current period of volatility could serve as a springboard for Malaysia to accelerate its move into higher-value sectors, with the New Industrial Master Plan 2030 (NIMP 2030) providing the long-term policy certainty, targeted incentives, and "safe harbour" measures needed to secure investor confidence. IM 2025 in Singapore is Bursa Malaysia's flagship programme in collaboration with the Macquarie Asean Conference 2025. Since its inception in 2005, Invest Malaysia has expanded its reach globally with 61 Invest Malaysia Away editions hosted in major financial centres worldwide. In 2025 alone, the series made its mark in London (January), followed by the Invest Asean-Malaysia here in June, each reinforcing Malaysia's position as a vibrant and attractive investment destination.
The Sun
3 hours ago
- The Sun
Oxford Innotech to ride on rising use of automation, robotics in manufacturing
PETALING JAYA: Integrated engineering solutions provider Oxford Innotech Bhd (OXB) is poised to capitalise on the rising adoption of automation in manufacturing as businesses increasingly seek solutions that enhance efficiency, ensure consistent quality and reinforce operational resilience in a competitive global market. OXB, which made its debut on the ACE Market of Bursa Malaysia Securities on July 29, offers integrated engineering solutions, mechanical assembly solutions and automation and robotic solutions. Its automation and robotic solutions division designs and manufactures standalone automated equipment, production line systems as well as provides smart factory systems solutions and technical support services. Customers in this segment are mainly in semiconductor and electrical and electronics (E&E) industries. Managing director Ng Thean Gin said: 'In the era of Industry 4.0, smart factory systems utilise a variety of technologies including artificial intelligence, big data analytics, cloud computing and the Industrial Internet of Things. At OXB, we work with proven strategic partners to deliver automation solutions to our customers. Shanghai-based Jaka Robotics Co Ltd is one such important partner to us.' Jaka Robotics is a global player in collaborative robotics with a presence in China, Hong Kong, Japan, Singapore, Malaysia, Germany and the United States. It specialises in the development and production of collaborative robots or cobots designed for the manufacturing industry with the objectives to increase production capacity and efficiency, reduce reliance on physical labour, improve worker safety and solve high staff turnovers. Its solutions have been deployed in over 100 countries, with more than 10,000 cobots in operation worldwide supporting various industries such as automotive, E&E, semiconductor, new energy and food processing, to name a few. Ng said they are working with Jaka Robotics on a project for a US-based multinational contract manufacturer with presence in Penang to automate their assembly process by reducing manual operators and enhancing process consistency. He added that this is the first phase of the initiative with several more phases in the pipeline. 'With the automation trend picking up pace in the face of rising cost pressures, we see a lot of growth potential in our automation and robotics division,' Ng said. Meanwhile, the group is in discussions to pursue larger-scale projects for its precision engineering components solutions and mechanical assembly solutions segments. 'We are currently in discussions on several opportunities with our existing customers and hope to share some positive news in due course. We expect the fiscal year ahead to be very busy and remain confident in our long-term outlook,' Ng said.
