China’s Stock Market Sees Best Week Since 2008
China’s aggressive monetary easing, including a 20 basis point rate cut, has fueled a strong rebound in its stock market. The CSI300 index surged 4.5% this week, marking its best performance since 2008. Despite the positive market movement, concerns linger over China’s slowing economy as it heads into a series of holidays next week.
U.S. Economy Stays Resilient as Fed Watches Inflation
On Wall Street, the U.S. economy continues to outperform expectations, with jobless claims dropping and durable goods orders increasing. The second-quarter corporate profit growth was revised up to 3.5%. Attention now shifts to the release of the Fed’s preferred inflation gauge, with expectations of a slight uptick in core inflation to 2.7%. The Fed’s path to easing may hinge on this data.
Eurozone and Mexico Respond to Inflation Pressures
In Europe, lower-than-expected inflation numbers in France and the eurozone signal growing pressure on the European Central Bank to continue cutting rates. Meanwhile, Mexico’s central bank reduced its benchmark rate by 25 basis points for the second straight month as inflation eases across Latin America.
Japan’s Yen Rallies as New Prime Minister Signals Policy Shift
In Japan, the yen saw a rally following the election of Shigeru Ishiba as the new leader of the ruling Liberal Democratic Party. Ishiba’s critical stance on past monetary stimulus suggests a potential shift in the country’s economic policy, with a focus on controlling inflation and maintaining current rate hikes.
