The biggest risk for American Technology stocks is Japanese government bonds.
BCA Research warns that a significant rise in Japan's real government bond yields would tighten the global liquidity environment, directly impacting U.S. technology stocks that rely on low-cost funding. Currently, Japan's 30-year government bond yield has reached a multi-year high, but the 10-year real yield remains negative.
Malaysia, Australia Reaffirm Strategic Partnership Commitment
AUD/USD is hovering in the upward Range, awaiting Australian inflation data for direction.
On Thursday (July 10th), the Australian Dollar continued to maintain a relatively strong position against the US Dollar, trading around 0.6550 in the North American session, within the rising range that has persisted over the past few months. The market is digesting two key events this week: one is the Reserve Bank of Australia (RBA) unexpectedly maintaining the interest rate at 3.85%, and the other is the Federal Reserve's meeting minutes suggesting no hasty policy changes in the near term. This week's RBA interest rate decision was significantly contrary to market expectations. Despite the gradual decline in inflation, the market had anticipated a 25-basis-point cut; however, the RBA chose to hold steady, keeping the benchmark interest rate at 3.85%.
Japan Producer Prices Sustain Easing Trend in June
Bank of Japan quarterly assessment: The economic impact of U.S. tariffs is temporarily limited, but there are still risks in the future.
The report shows that the impact of U.S. tariffs on Japanese output and exports is currently limited, but many companies remain anxious about the future effects of the tariffs, fearing that they might weaken global demand.
Bank of Japan Branch Managers' Report: Economic Uncertainty Persists, Caution Prevails on Further Rate Hikes
A report from a meeting of branch managers of the Bank of Japan hardly clarified the impact of President Trump's massive tariff imposition, highlighting that the Bank of Japan is still in a wait-and-see mode before considering another interest rate hike.