Market News
【United States】
US Economy Regains Speed In Second Quarter; Price Pressures Easing
The U.S. economy grew faster than expected in the second quarter, driven by robust consumer spending and business investment, but inflationary pressures eased, keeping expectations for a Federal Reserve rate cut in September unchanged.
The preliminary annualized quarter-over-quarter growth rate of the real GDP in the second quarter was 2.8%, higher t...

Market news
[America]
US economic growth in the second quarter exceeded expectations, and price pressure eased somewhat
The US economy grew faster than expected in the second quarter. Due to steady growth in consumer spending and corporate investment, inflationary pressure weakened, and expectations for the Federal Reserve to cut interest rates in September remained unchanged.
The initial annualized quarterly value of US GDP for the second quarter was 2.8%, higher than market expectations of 2%. The previous value was 1.4%. The inflation indicator that the Federal Reserve is concerned about - the core PCE price index rose 2.9% in the second quarter, down from the previous value of 3.7%, but still higher than the forecast of 2.7%
[Asia Pacific]
Taiwan's export orders in June were 45.56 billion US dollars, a monthly decrease of 6.8%, and a seasonally adjusted 5.5% decrease. The year-on-year increase was 3.1%, far below market expectations of a 12.5% increase.
The initial quarterly GDP rate for the second quarter of South Korea fell by 0.2%, and is expected to grow by 0.1%. South Korea's GDP grew at an initial annual rate of 2.3% in the second quarter, and is expected to grow by 2.5%.
The South Korean government announced a series of tax relief measures to stimulate the economy and boost the stock market, including lowering the upper limit of inheritance tax from 50% to 40% and drastically raising the threshold from 50 million won to 0.5 billion won per person. The government also plans to extend semiconductor tax benefits for three years, delay the cryptocurrency holding tax plan for another two years, and seek to abolish plans to levy capital gains taxes on financial investment income.
[Pan-Southeast Asia]
India's new Modi government's first budget released
The fiscal deficit target for this fiscal year was lowered to 4.9% of GDP,...

Investors can position in SREITs ahead of a change in funding cost
•SREITs saw a 0-60bp q/q rise in average funding cost in 1Q24 as cost of debt is being “marked-to-market”
•Average funding cost is projected to continue increasing in 2H24F, though the rate at which it increases is expected to slow or even decrease in 2025F
•When funding costs decreas...

•Following the attempted assassination of Donald Trump, his odds of a presidential return have risen, as per PredictIt data. Trump's advocacy for looser fiscal policy and increased tariffs is generally seen as beneficial for the US dollar and US yields. Furthermore, a Trump win and a Republican sweep could increase volatility and fiscal worries, thereby causing higher yields and steeper curves.
•Last week’s consumption data came in stronger than expected ...

Market News
【United States】
US stocks ended higher as investors firm bets on Trump win, rate cuts
- US major stock indices closed higher on Monday, building on Friday's rally as increasing expectations of a second Donald Trump presidency in the wake of a failed assassination attempt raised hopes of a looser regulatory environment.
- The growing probability that the U.S. Federal Reserve will begin cutting its key interest rate as soon as Septemb...

Market News
【APAC】
South Korea exports jumped 33.8% in the first 10 days of July, while imports rose 26.7% resulting in a trade deficit of $2b, according to a statement from Korea Customs Service. Chip Exports Jump 85.7% and car exports rise 9.8%

【Japan】
Japanese stocks fall for first time in 4 days amid double blow
On July 12, the Nikkei 225 in the Tokyo stock market fell for the first time in four trading days, falling 1,033 points (a drop of 2%) fro...

Market news
[Asia Pacific]
According to a statement from the Korea Customs Service, South Korea's exports increased by 33.8% in the first 10 days of July, while imports increased by 26.7%, leading to a trade deficit of 2 billion US dollars. Among them, chip exports surged 85.7%, and automobile exports increased 9.8%.
[Japan]
The Japanese stock market retreated for the first time in 4 days under a double blow
On July 12, the Nikkei Average of the Tokyo stock market fell for the first time in 4 trading days, falling 1,033 points (2% decrease) from the previous day to close at 41,190 points. The US Consumer Price Index (CPI) released on the evening of the 11th Japan time fell short of market expectations, causing the yen exchange rate to skyrocket. At the same time, the decline in US technology stocks also had an impact. As of the previous day, the Nikkei Average, which had reached an all-time high for 3 consecutive days, stopped rising continuously. The appreciation of the yen and the fall in the US stock market had a double impact on the Japanese stock market.
[China]
China's GDP grew 4.7% year on year in the second quarter, falling short of expectations; GDP grew 5.0% year on year in the first half of the year.
The Bureau of Statistics said that short-term fluctuations will not change the long-term positive trend. The contribution rate of total capital formation to economic growth increased in the second quarter, and the contribution rate of final consumption expenditure declined. The “Report on the Work of the Government” sets China's economic growth target of around 5% this year.
· Exports in the second quarter (in US dollars) were 5.9% higher than the same period last year. The trade surplus of exports minus imports increased 16% year over year.
· The first half of the year, above scale...

•Last week, during Fed Chair Powell’s dovish remarks to the Senate Banking Committee. Powell noted the labor market's return to balance, contrasting with his previous comments. While he didn't provide a timeline for rate cuts, he highlighted signs of a slowing job market following data showing rising unemployment for three consecutive months.
•Furthermore, June’s CPI report came in mild with core CPI rising by just 0.06% monthly (consensus: 0.2%), with ren...