🗓 Thursday, August 7
► Europe rallies on peace talk hopes & earnings beats; FTSE 100 lags after BoE rate cut
European equities climbed, buoyed by confirmation of upcoming Trump-Putin summit talks and a string of corporate earnings beats. The Stoxx 600 rose +0.95%, with travel & leisure and Ukraine-exposed names leading gains. The DAX surged +1.6% benefiting also from strong earnings from Siemens, Allianz, and Maersk. CAC 40 gained +1.15%, while FTSE 100 underperformed at -0.7% after the Bank of England cut rates by 25bps to 4% in a very split MPC decision but warned future easing would be cautious. German industrial production fell sharply, adding to recession concerns. EUR/USD slipped to 1.164, while GBP/USD rose to 1.342 on BoE commentary.
► US futures rise on tariff exemptions, Apple boost & Fed cut hopes
Wall Street futures extended gains – S&P 500 +0.6%, Nasdaq 100 +0.8%, Dow +0.5% – as Trump confirmed exemptions for chipmakers building in the US, helping tech sentiment. Apple rose another 2% following pledging a $100B domestic investment, with Nvidia, AMD also higher. Broader optimism was fueled by talk of a September Fed rate cut, as several officials flagged labor market weakness. Corporate movers included DoorDash, Paycom (both up on guidance), and Fortinet, Airbnb, Eli Lilly (all down on disappointing updates). Intel fell sharply after Trump called for the CEO’s resignation. 10Y Treasury yields rose to 4.24%, while the dollar index (DXY) is little changed (-0.02%)
► Asia rebounds broadly on US tariff relief & China export surprise
Asia-Pacific markets rallied on relief over Trump's tariff carveouts and improved China export data. Nikkei 225 +0.65%, Hang Seng +0.69%, Kospi +0.92%, and Taiwan +2.37% surged on chip optimism. China’s Shanghai Composite rose +0.16% after exports accelerated unexpectedly in July despite high tariffs. ASX 200 -0.14% was the lone decliner, weighed by weak commodities. In FX, USD/JPY was slightly lower at 147.05, AUD/USD firmed to 0.653, and USD/CNY dipped to 7.179. Indian shares lagged, with Nifty 50 +0.09%, as new US tariffs on Indian goods pressured sentiment.
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