EU plans biggest carbon market overhaul: What's changing and why it matters - The Economic Times

• US stock markets are showing increased vulnerability, with the Nasdaq dropping 1.5% yesterday as momentum stocks face defensive selling. • Despite benign June CPI and PPI figures, Dallas Fed President Logan warned that inflation is not yet on track to hit the 2% target, suggesting interest rates may need to remain modestly higher.

• Asian stock markets plummeted on Friday, led by Tokyo's Nikkei 225, which dropped more than 5% due to heavy selling of AI-related shares and computer chipmakers. • Taiwan's markets saw a significant decline of 5.9%, following news that TSMC, the world's largest contract chip manufacturer, intends to invest an additional $100 billion in U.S. fabrication plants.

• JPMorgan Chase stock is trading near record highs following strong earnings momentum driven by higher interest income and robust credit quality. • The bank reported a substantial increase in annual net income, bolstered by non-interest revenue from trading, investment banking, and high consumer spending volumes.

• Today's primary economic focus is the release of the University of Michigan consumer sentiment report. • Market attention remains heavily centered on evolving geopolitical headlines regarding US-Iran relations.

• The EUR/USD exchange rate has risen toward the 1.1450-1.1500 range, reaching its highest level in a month despite signs of slowing economic momentum in the eurozone. • While softer U.S. inflation has weakened the dollar by lowering expectations for Federal Reserve tightening, European natural gas prices are emerging as a critical driver for the euro.

• European stocks, including the Stoxx 600, experienced an upward trend driven by positive Purchasing Managers' Index (PMI) data. • The German DAX reached record highs as investor sentiment improved due to easing fears regarding further interest rate hikes from the U.S. Federal Reserve.

• Euro zone bond yields have increased, with German 10-year bonds reaching 3.13% in July. • This rise has narrowed the borrowing gap between German bonds and US Treasuries to its lowest level in one month.

• Wall Street ended the trading session lower, with the Nasdaq and S&P 500 indices pulled down by significant declines in semiconductor stocks. • The downturn occurred despite positive economic indicators, including solid U.S. retail sales figures, easing jobless claims, and strong earnings expectations.

• Asian stock markets declined following a significant selloff of chipmakers on Wall Street, driven by investor concerns over high tech valuations. • Market volatility is increasing as investors question the long-term sustainability of massive investments in artificial intelligence.

• China has initiated deleveraging measures following a period of significant volatility in South Korea's Kospi market. • Analyst Jin Qianjing of Shenwan Hongyuan Group warns that South Korean stocks may act as a sentiment amplifier for global technology stocks due to high leverage levels.

• The Federal Reserve's internal watchdog issued a warning on Thursday regarding the central bank's vulnerability to insider threats. • The report highlights that sensitive economic information is being actively targeted by foreign adversaries seeking an advantage.