Rallies

• Wall Street indices rallied on Thursday as investors reduced their expectations for further interest rate hikes following comments from Fed Governor Christopher Waller. • Market movement was further influenced by late second-quarter earnings reports, creating performance gaps between the software and semiconductor sectors. • Economic data released on the day remained generally positive, highlighted by an acceleration in the service sector and low jobless claims.

• Asian stock markets generally rose, led by a significant 3.7% rally in South Korea’s Kospi Index, while Japan’s Topix and the Shanghai Composite both climbed 0.5%. • The positive momentum follows a cooler-than-expected US jobs report and CPI reading, which Wells Fargo suggests may discourage the Federal Reserve from taking hawkish rate hikes in September. • Despite the broad rise, caution remains as Cisco Systems' shares dropped 4.1% due to disappointing earnings, and Cerebras Systems plummeted 17% following a decline in hardware sales.

• The Australian Securities Exchange (ASX) extended its gains following a positive rally on Wall Street. • Economist Louise Southall from Xero noted surprising Australian Bureau of Statistics (ABS) data showing discretionary spending grew at a faster rate than spending on essential items. • The market activity coincides with a drop in global oil prices, contributing to the shifting financial landscape.

• Wall Street experienced a broad rally, with the S&P 500 gaining 1%, the Nasdaq Composite rising over 1%, and the Dow Jones Industrial Average advancing 624 points (1.2%). • The surge was driven by a decline in oil prices and renewed investor optimism regarding a potential diplomatic deal between the US and Iran. • This rally is significant as it extends a recovery period following a volatile July characterized by sharp market swings.

• European Commission President Ursula von der Leyen has expressed support for Spain following a diplomatic crisis involving the territory of Ceuta. • The move comes after Spanish Prime Minister Pedro Sánchez accused several European leaders of attacking him rather than offering solidarity during the turmoil. • Tensions escalated on Thursday when Italian Prime Minister Giorgia Meloni proposed suspending Spain from the 29-country Schengen zone, which typically allows for borderless travel.

• The Japanese yen rose nearly 1% against the U.S. dollar on Monday as investors anticipated a potential coordinated currency intervention between Japan and the United States. • This rally is driven by market expectations that Japanese authorities will act to stabilize the currency, alongside shifting outlooks regarding the Bank of Japan's monetary policy. • The movement is significant as it reflects growing volatility in the USD/JPY pair and highlights the tension between U.S. economic strength and Japanese currency stability.

• Asian stocks showed mixed stability on Thursday following a volatile week characterized by an AI-driven sell-off and uncertainty regarding US Federal Reserve interest rate policies. • South Korea's Kospi rallied 3.55% (up 201.22 points) and Taiwan's benchmark rose 1.66%, while Japan's Nikkei climbed 1.43% to 62,315.56. • Despite these daily gains, the Nikkei and Kospi remain on track for significant weekly declines of 3% and 12%, respectively.