Global Markets Brace for US Jobs Data After Rebound
04 September 2026 · Evening
Global markets saw a rebound with the S&P 500 up 1.06% and Nasdaq up 1.40%, while the VIX volatility index dropped 5.79%, signaling renewed risk appetite.
Investors are now awaiting the crucial US August non-farm payrolls report tonight, following dovish remarks from a Federal Reserve official that tempered immediate rate hike bets.
Meanwhile, global bond markets face supply concerns as Norway's sovereign wealth fund proposes reducing US Treasury holdings, and Middle East geopolitical tensions continue to push oil price forecasts higher.
Global markets are navigating a complex landscape as new economic data reveals diverging trends across regions.
Eurozone retail sales disappointed, while Germany's industrial orders surprised positively, painting a mixed picture for Europe.
Global Markets
Detail
S&P 500
Closed at 7,747.71 on September 3rd.
+1.06%
Nasdaq
Closed at 26,584.06 on September 3rd.
+1.40%
STOXX 600
Trading at 649.48 as of 19:45 KST on September 4th.
+0.06%
Nikkei 225
Closed at 65,020.87 on September 4th.
+1.26%
CSI 300
Closed at 4,548.05 on September 4th.
-0.10%
KOSPI
Closed at 6,687.21 on September 4th.
+1.64%
Hang Seng
Closed at 25,650.87 on September 4th.
+1.74%
Dollar Index (DXY)
Closed at 99.09 on September 4th.
+0.09%
USD/JPY
Closed at 156.34 on September 4th.
+0.35%
EUR/USD
Closed at 1.16 on September 4th.
-0.04%
USD/KRW
Closed at 1,350.90 on September 4th.
-0.37%
USD/CNY
Closed at 6.71 on September 4th.
-0.11%
US 10-year yield
Closed at 4.772% on September 3rd.
-0.8bp
US 2-year yield
Closed at 4.340% on September 3rd.
-3.1bp
Japan 10-year yield
Closed at 2.909% on September 4th.
-3.9bp
Germany 10-year yield
Trading at 3.351% as of 19:45 KST on September 4th.
-0.2bp
Korea 10-year yield
Closed at 4.361% on September 4th.
-0.2bp
US HY Spread
Closed at 266bp on September 2nd.
+1.0bp
WTI
Closed at 90.56 on September 4th.
-0.81%
Gold
Closed at 4,473.61 on September 4th.
+0.02%
Copper
Closed at 6.64 on September 4th.
-0.37%
VIX
Closed at 14.31 on September 3rd.
-5.79%
Markets & Commodities
Brent Oil Forecasts RaisedCiti $86, ANZ $95
Citi lifted its Q3 2026 Brent crude oil forecast to $86 per barrel, citing unsustainable Middle East supply disruptions and potential diplomatic solutions by Q4.
ANZ raised its short-term Brent forecast to $95 per barrel, noting the market's entry into a 'sensitive adjustment phase' with ongoing inventory adjustments.
Hormuz Strait traffic significantly slowed to 4 vessels, down from a 10-day average of 15, reflecting severe maritime supply constraints.
Global Equities and Bonds RallyS&P 500 futures up
Dovish signals from a Federal Reserve official led to reduced market bets on a September rate hike, boosting risk assets globally.
Japan's Nikkei 225 rose 1.3% and Australia's ASX 200 gained 0.2%, with US S&P 500 futures showing slight increases.
US 10-year Treasury yields fell, driving a bond rally, while the US Dollar Index weakened, pushing the Yen up 2.3-2.6% for the week.
Emerging Market Assets ReboundMSCI EM +1.4%
The MSCI Emerging Markets Index climbed 1.4%, primarily led by gains in South Korea and Taiwan.
This rebound reflects an easing of global risk aversion, as investors' appetite for riskier assets improved.
Australian Dollar Hits 4-Month HighAUD/USD $0.7208
The Australian dollar (AUD) broke above $0.7208 against the US dollar, reaching a four-month high.
This surge is attributed to a weaker dollar and receding expectations for advanced economy rate hikes, making Australia's higher interest rates relatively more attractive.
Australian Housing Market DownturnDownturn 6-12 months
A Reuters poll of property experts forecasts the Australian housing market downturn to persist for at least 6-12 more months.
High-end properties in Sydney and Melbourne are expected to lead the declines, driven by three RBA rate hikes (raising borrowing costs to 4.35%) and changes to property investment tax rules.
New Zealand Central Bank Hikes RatesRBNZ +25bp
The Reserve Bank of New Zealand (RBNZ) raised its policy rate by 25 basis points to 2.75% on Wednesday.
The Monetary Policy Committee cited accommodative monetary conditions and the need to reinforce its commitment to returning inflation to target.
The RBNZ signaled further rate hikes but emphasized a 'measured' pace for future actions.
Israel Clears Hezbollah TunnelsTunnels cleared
Israel's Defense Minister announced the completion of clearing Hezbollah tunnels under the strategic Ali al-Taher ridge in Lebanon.
This follows intense conflict in the area despite a June ceasefire agreement, with the US mediating the release of five Lebanese detainees as a confidence-building measure.
United States
Iran Wedding AttackUS munition hit
A bomb attack at a wedding in Kuhestak village on Tuesday resulted in 5 deaths and over 68 injuries.
Analysis by weapons experts, based on verified videos and photos, suggests a direct hit by a US munition.
US authorities are currently investigating the incident, as announced by Vice President Vance.
US Tightens Iran Economic BlockadeUAE halts trade
Increased US pressure to block oil exports and sanction evasion is severely impacting the Iranian economy.
The UAE's decision to halt trade and financial transactions has crippled Iran's main commercial hub, with Iranian officials reporting increasing difficulty in sustaining the economy.
Average monthly wages now cover only one-third of basic household expenses due to currency depreciation and inflation.
Fed Governor Waller Signals Rate Pause9월 인상 50%
Fed Governor Christopher Waller stated he would support a rate pause if future data confirms easing inflationary pressures.
This shifted market expectations for a September rate hike to a 50/50 chance, down from 63% previously.
The focus is now on next week's August Consumer Price Index (CPI) data as a key indicator for the economic outlook.
August US Employment Data AwaitedNFP +56k expected
The August non-farm payrolls report, due today, is expected to show a gain of 56,000 jobs, rebounding from July's 23,000 decline.
The unemployment rate is projected to remain at 4.1%, with annual wage growth slowing to 3.0% from 3.2% in July.
USD/JPY Drops SharplyUSD/JPY -287 points
USD/JPY fell 287 points on Thursday, marking its third-largest single-day drop in 2026.
Previous larger drops in April and July were linked to direct intervention by Japanese authorities.
The pair is currently holding above the August low of 155.20, but downward pressure persists, with the Yen showing significant weekly gains.
Trump Envoys to Visit Russia and UkraineTASS reports
TASS reported that Trump envoys Witkoff and Kushner are scheduled to visit Russia and Ukraine this weekend (September 6-7), though this is unconfirmed.
These envoys have been central to Ukraine peace negotiations, having met with Putin in the Kremlin for four hours in January.
Discussions for a simultaneous visit to Ukraine are also underway, with September 6th being a possible date.
Google (GOOGL)+0.63%
A U.S. federal judge ruled that Google's ad tech business did not require a forced sale, instead ordering behavioral remedies.
This decision significantly mitigates the risk of a business breakup for the company.
Google continues to update its AI models, including the release of Gemini 3.8.
Broadcom (AVGO)-0.66%
Q3 adjusted EPS of $2.44 slightly surpassed analyst estimates of $2.40, but revenue of $22.19 billion missed the $22.27 billion forecast.
Q4 revenue guidance of $34.8 billion fell below market expectations, leading to a premarket decline of 1.8% and a 2% drop on the Frankfurt exchange.
The company raised its FY26 AI semiconductor revenue guidance to $56-58 billion and projected a doubling to $230 billion by FY2028, with next-gen accelerator shipments to Meta, OpenAI, Anthropic, and Google.
Nvidia (NVDA)Acquisition
Announced an agreement to acquire Hugging Face for $12.93 billion, aiming to expand its AI software and open-source ecosystem.
A copyright infringement lawsuit by Jamendo has been supplemented and is scheduled for its first hearing in January 2027.
Apple (AAPL)-0.05%
CEO Tim Cook is reportedly transitioning to Executive Chairman, with John Ternus emerging as the potential new CEO.
Apple faces a £270 million ($2.7 billion) class-action lawsuit in the UK related to its App Tracking Transparency policy, accused of abusing market dominance.
Apple maintains the feature is designed to give users control over personal data tracking and protect privacy.
Microsoft (MSFT)Restructuring
Microsoft is restructuring its financial reporting from FY27, separating into 'Agents & Infrastructure' (including Azure) and 'Devices & Consumer' segments.
Q4 Azure revenue was restated to $29.42 billion, and Q1 FY27 guidance projects Azure growth of 44-45% (constant currency) and M365 commercial cloud growth of 17%.
Dell Technologies (DELL)+15.81%
Dell Technologies saw a significant surge, becoming a top daily performer.
The company is categorized under Information Technology with a market cap of $318 billion.
Reddit (RDDT)+9.31%
Reddit experienced a strong daily gain, placing it among the top performers.
The company operates in Communication Services with a market cap of $30 billion.
Charter Communications (CHTR)+8.74%
Charter Communications recorded a notable increase in its stock price.
The company is part of the Communication Services sector with an $18 billion market cap.
Skyworks Solutions (SWKS)+6.32%
Skyworks Solutions achieved a solid daily gain.
It is classified under Information Technology with a market cap of $11 billion.
Block (SQ)+5.88%
Block, formerly Square, posted a strong performance for the day.
The company is in the Financials sector with a market cap of $50 billion.
Steel Dynamics (STLD)+5.79%
Steel Dynamics saw its stock price rise significantly.
The company is in the Materials sector with a market cap of $35 billion.
The Trade Desk (TTD)+5.59%
The Trade Desk recorded a robust daily increase.
It belongs to the Communication Services sector with a market cap of $7 billion.
Best Buy (BBY)+5.29%
Best Buy's stock price moved up, making it a top gainer.
The company is in the Consumer Discretionary sector with an $18 billion market cap.
Nucor (NUE)+4.78%
Nucor, a steel producer, also saw a strong daily performance.
It is classified under Materials with a market cap of $60 billion.
PayPal (PYPL)+4.33%
PayPal's stock price increased, contributing to the day's top gains.
The company is in the Financials sector with a market cap of $47 billion.
Palo Alto Networks (PANW)-5.24%
Palo Alto Networks acquired AI security startup Console for $500 million.
The company reaffirmed its FY28 adjusted free cash flow margin target of 40%.
HSBC lowered its target price from $201 to $190, while other brokerages generally raised their targets.
Palantir (PLTR)Partnership
Palantir expanded its strategic partnership with PwC.
The company also hired Peter Zaffino, former Executive Chairman of AIG, as its Global Head of Financial Services.
Meta Platforms (META)AI Models
Meta unveiled new AI models and a voice transcription API called 'Muse Voice Transcribe'.
These releases aim to narrow the technology gap with competitors in the AI space.
GE Vernova (GEV)+2.61%
GE Vernova secured a contract to supply 16 6.1-megawatt turbines (total 96 MW) for the Cleanside wind farm in Scotland.
The company is also participating in a 1.2 GW nuclear power project in Sweden alongside Hitachi, Studsvik, and Samsung C&T.
Additional new orders include a power grid improvement agreement in Venezuela.
Boeing (BA)FAA Fine
Boeing confirmed a $3.1 million fine from the FAA for safety violations related to the Alaska Airlines door plug incident.
The company is reportedly negotiating with Ethiopian Airlines for the purchase of up to 10 Boeing 777 freighters.
Chevron (CVX)+0.35%
Chevron plans to invest $7 billion over the next five years through its Venezuelan joint venture, Petroindependencia.
This investment secures development rights in the Orinoco Belt's Carabobo region, with profitability confirmed at under $20 per barrel total cost.
Chevron and Shell also signed an MoU to acquire oil field development rights in Ghana, aiming to reverse the country's declining oil and gas output.
Tesla (TSLA)+0.26%
Tesla is scheduled to unveil its 'Cybertaxi' robotaxi, a two-seater autonomous vehicle, in Austin, Texas, marking a key event for its autonomous driving business.
France has commenced testing of Tesla's Full Self-Driving (FSD) system, with a potential EU-wide approval vote expected early next month.
German new registrations in August increased by 110.5% year-over-year to 3,034 units, indicating a recovery in European market sales.
Amazon (AMZN)+0.02%
Wells Fargo raised its target price for Amazon from $328 to $338.
Reports indicate Amazon is progressing towards its goal of handling nearly 90% of its U.S. package deliveries through its own network.
Berkshire Hathaway (BRK.B)Investment
Vice Chairman Greg Abel confirmed that Warren Buffett personally led the investment in Alphabet, which is one of Berkshire Hathaway's top three holdings.
Abel also cited AI data centers as a major opportunity for Berkshire Hathaway Energy.
Costco (COST)Sales Growth
Costco reported August net sales of $23.7 billion, a 9.9% year-over-year increase.
Company-wide comparable sales rose by 8.4%, indicating continued robust consumer spending.
Exxon Mobil (XOM)-0.24%
Piper Sandler raised its target price for Exxon Mobil from $158 to $185, an increase of $27.
Walmart (WMT)+0.16%
Walmart is expanding its food delivery services through a collaboration with Inspire Brands, which owns multiple restaurant chains including Dunkin'.
Europe
Norway Sovereign Fund to Cut US Treasury Holdings$80B US T-bonds cut
Norges Bank Investment Management (NBIM) proposed reducing the government bond allocation in its benchmark index to 50%.
This would result in an estimated $80 billion reduction in US Treasury holdings, aiming to enhance profitability amid inflation concerns and rising government debt.
This signals a potential shift in global demand for safe-haven assets.
Eurozone Retail Sales Miss EstimatesJuly -0.6% MoM
Eurozone retail sales for July fell 0.6% month-over-month (vs. +0.3% expected) and rose 0.6% year-over-year (vs. +1.1% expected).
Both figures were lower than market expectations, indicating weakening household purchasing power and subdued real consumption.
High interest rates and energy costs continue to suppress household spending, raising questions about the eurozone's economic resilience.
JPM and BNP Paribas Shift to ECB Hike ScenarioECB +25bp expected
Both investment banks revised their forecasts, now expecting the European Central Bank (ECB) to implement an additional 25 basis point rate hike in December.
This shift from their previous view of no further hikes is driven by persistent energy risks and inflation pressures.
This implies that eurozone interest rates are likely to remain higher for longer, increasing borrowing costs for governments and businesses.
Germany Industrial Orders SurgeJuly +2.5% MoM
German industrial orders for July rose 2.5% month-over-month, significantly exceeding the market expectation of +0.3%.
This indicates an improvement in manufacturing demand for the eurozone's largest economy, suggesting a recovery from a weaker summer season.
It reaffirms the short-term resilience of German manufacturing, though caution is needed given long-term weak trends.
Germany 10-Year Yield Rises for 4th WeekYields up
The German 10-year bond yield increased for the fourth consecutive week, driven by renewed inflation concerns.
This follows escalating Middle East tensions and a weekly surge in oil prices (the largest since mid-July).
Investors are pricing in the likelihood of central banks maintaining tight monetary policies to control inflation, pushing up safe-haven yields and increasing borrowing costs.
BOE Governor Bailey on Public DebtDebt pressure
Bank of England Governor Andrew Bailey highlighted structural factors contributing to rising public debt in advanced economies.
He cited weak productivity, pandemic shocks, aging populations, and increased defense spending as key drivers.
Bailey noted that high debt levels directly lead to higher government borrowing costs, increasing bond market tensions, while maintaining a cautious stance on forward guidance for monetary policy.
UK Construction Sector Contracts20 months contraction
The S&P Global Construction Purchasing Managers' Index (PMI) for the UK registered 44.3, marking the 20th consecutive month of contraction.
This downturn is primarily led by a sharp decline in residential construction, indicating ongoing weakness in the sector.
UK Construction PMI44.7
The UK Construction PMI remained at 44.7, significantly below the 50-point growth threshold and market expectations of 45.5.
Housing construction activity deteriorated sharply, while commercial and civil engineering sectors saw slight improvements.
Persistent household debt burdens and high interest rates continue to suppress housing demand, signaling a negative outlook for the economy.
UK Business Inflation Expectations3.8%
UK business expectations for inflation eased to 3.8% for the year ahead, down 0.1 percentage points from the previous 3.9%.
The Bank of England's Decision Maker Panel (DMP) survey showed a slight easing in 3-month inflation expectations from 3.9% to 3.8%.
Wage expectations remained stable at 3.4%, suggesting limited concerns about a wage-price spiral for now, and serving as a key indicator for the central bank.
Eurozone July Retail Sales-0.6% M/M
Monthly retail sales in the Eurozone fell by 0.6% in July, significantly missing the Reuters poll forecast of a 0.3% increase.
Year-on-year sales also grew less than expected at 0.6%, indicating weaker consumer spending across the bloc.
This data suggests a slowdown in consumer demand, potentially impacting economic growth in the region.
German July Industrial Orders+2.5% M/M
Industrial orders in Germany surged by 2.5% month-over-month in July, far exceeding the forecast of a 0.3% increase.
This strong rebound indicates a potential recovery in industrial activity, providing a positive signal for Europe's largest economy.
The unexpected rise suggests resilience in demand despite broader economic concerns.
Irish Domestic Economy-0.8% Q2
Ireland's domestic economy contracted by 0.8% in the second quarter.
However, overall GDP saw a significant increase of 10.2%, largely driven by multinational activities.
This highlights the dual nature of the Irish economy, with strong external sectors masking domestic challenges.
Norway's Sovereign Fund$2 Trillion
Norway's $2 trillion sovereign wealth fund is proposing deep cuts to its holdings of US Treasury bonds.
This move could reflect a strategic shift in asset allocation or concerns over future US fiscal policy and debt levels.
Such a large divestment by a major global investor could influence bond markets.
Bank of England's BaileyHigh Debt
Bank of England Governor Andrew Bailey sees long-term pressures driving up government debt.
He noted that high debt levels reflect very substantial challenges to governments.
These pressures add to bond market pressure and underscore ongoing concerns about fiscal sustainability.
China
Rare Earth SuppliersUS Exports Halted
Chinese rare earth suppliers are reportedly refusing US export orders, despite holding valid licenses, due to Beijing's retaliation concerns.
This action is believed to be a retaliatory measure amidst escalating geopolitical tensions, impacting critical US industries.
The halt could affect defense, semiconductors, aerospace, and energy sectors, and may become a key negotiation point ahead of a potential Xi-Biden meeting.
Pacific SummitICBM Concern
A Pacific leaders' summit expressed concern over China's July test of a nuclear-capable intercontinental ballistic missile (ICBM) in the Pacific, with Nauru dissenting.
Host nation Palau is pushing for a rule requiring at least 24 hours' prior notification for such tests, which Beijing strongly condemned as a malicious act.
Taiwan also raised suspicions of Chinese espionage activities during the summit, highlighting heightened regional tensions.
Commercial BanksDollar Deposits
Some Chinese commercial banks have raised US dollar deposit rates to over 3% since June, attracting dollar assets.
This strategy aims to pursue higher-yielding investments and potentially manage excessive yuan strength.
The banks have subsequently been observed purchasing US Treasuries over the past few months.
Yuan3.5-Year High
The onshore spot yuan exchange rate strengthened to 6.7165 per dollar, gaining 13 pips from the previous close and reaching its highest level since February 2023.
This appreciation occurred despite the central bank maintaining a weakening bias in its daily reference rate, indicating mixed policy signals.
The yuan's strength comes amid a broader dollar weakening trend.
Chinese StocksWeekly Loss
Chinese stocks are set for a weekly loss, with the CSI300 down approximately 1% for the week despite a 0.4% gain today.
The Hang Seng Index saw a 2.1% rise today, but a more modest 0.6% gain for the week.
The consumer goods sector led gains today with 2.6%, contrasting with weakness in AI supply chain stocks as the rally loses steam.
PBOC50B Yuan Repo
The People's Bank of China announced it will conduct a 50 billion yuan (approximately $6.8 billion) 3-month outright reverse repo operation on September 7.
This measure is typically used to manage liquidity in the financial system.
The operation will take place in the offshore market.
Baowu (China Baowu Steel Group)BHP Stake
China Baowu Steel Group, the world's largest steelmaker, is reportedly considering acquiring a 15-25% stake in BHP Group's Jimblebar iron ore mine in Australia.
The Jimblebar mine is projected to produce around 62.5 million tons of iron ore in 2026, accounting for about a quarter of BHP's total output.
This potential investment highlights China's ongoing efforts to secure raw material supplies.
Japan
Government Budget Requests¥143.1 Trillion
Japanese government ministries have submitted budget requests totaling 143.1 trillion yen (approximately $920 billion), expanding to levels seen during the COVID-19 pandemic.
This expansion conflicts with Prime Minister Takaichi's stance of limiting new government bond issuance to around 40 trillion yen.
The situation highlights a fundamental tension between the need for expanded fiscal spending and the goal of containing national borrowing costs.
July Household Spending-3.6% Y/Y
Japan's household spending fell by 3.6% year-on-year in July, more than double the market's median forecast of a 1.6% decline.
This marks the eighth consecutive month of decrease, signaling a deepening weakness in consumer demand.
On a month-over-month, seasonally adjusted basis, spending increased by only 0.5%, significantly missing the 2.6% forecast, making it a key indicator for the BOJ's September rate hike decision.
Yen+2.2% Weekly
The Japanese Yen is set for its strongest week in over a month, gaining 2.2% against the dollar.
The USD/JPY pair touched a low of 155.25 this week, currently trading around 156.45, with the August low of 155.20 acting as resistance.
This surge is attributed to a massive liquidation of yen short positions, as the market now prices a 99% probability of a 1.25% rate hike by the Bank of Japan in September.
JGB Yields30Y 4.195%
The yield on Japan's 30-year government bond (JGB) reached near a record high of 4.195%, while the 10-year JGB yield surpassed 3% for the first time since 1996.
The simultaneous rise in long-term bond yields has led to the unwinding of bets on a steepening yield curve, with 30-year yields falling 10.5 basis points and 40-year yields dropping 13 basis points.
Domestic bond buyers like Nippon Life Insurance are re-evaluating JGBs due to attractive yields, potentially leading to a return of domestic capital and increased demand for government debt.
India
WACR4.95%
India's weighted average call rate (WACR) fell to 4.95%, below the 5.00% Standing Deposit Facility (SDF) rate, marking two consecutive days below the policy corridor floor.
This occurred as the banking system's liquidity surplus exceeded 10 trillion rupees (approximately $106 billion) for the first time.
The Reserve Bank of India (RBI) attempted to absorb this excess liquidity by conducting a 1.5 trillion rupees (approximately $16 billion) 3-day variable rate reverse repo auction.
Q2 GDP Growth7.8%
India's GDP grew by 7.8% in the April-June quarter, surpassing the market consensus of 7.1%.
However, former central bank governors and other economists have raised concerns about the accuracy and sustainability of this growth, suggesting it may be overstated.
Critics point to a structural issue where strong GDP growth is not translating into increased employment or private sector investment.
RupeeStable
The Indian Rupee maintained a stable exchange rate of 94.46 against the dollar at market open, slightly stronger than yesterday's 94.4850, primarily due to intervention by the RBI selling dollars.
The rupee has achieved its highest level in the past two months this week, making it the strongest performing Asian currency after the Korean Won.
Central bank dollar sales and one-off capital inflows have effectively offset depreciation pressures from rising global oil prices.
Indian StocksRebound
Indian shares opened higher, rebounding after four consecutive trading days of losses.
This turnaround was fueled by comments from US Federal Reserve Governor Waller, who supported holding interest rates steady in September if inflation continues to ease.
The probability of a Fed rate hike at the mid-September FOMC meeting dropped from 63% to 50%, improving global equity market sentiment.
Private BanksCEO Changes
Major Indian private banks, including HDFC Bank, are experiencing a series of CEO changes, with some key leadership positions remaining vacant.
HDFC Bank has exceeded the Reserve Bank of India's (RBI) six-month deadline to fill its CEO vacancy, leading to increased regulatory scrutiny.
These abrupt management changes raise concerns about the continuity of long-term business strategies and could potentially reduce the valuation premium of these banks' stocks.
Mandatory Battery StorageNew Projects
India has proposed making battery storage mandatory for all new solar and wind power projects commissioned after July 2027.
These projects will be required to include battery storage equivalent to at least 10% of their capacity for a minimum of two hours.
From July 2029, the storage duration requirement will increase to four hours, aiming to mitigate the intermittency of renewable energy and enhance grid stability.
Emerging Markets
Kazakhstan Central BankRate Cut 50bp
Kazakhstan's central bank lowered its key policy rate by 50 basis points to 16.25%, a larger cut than the market expected 16.50%.
Despite the cut, the bank raised its 2027 inflation forecast to 6.5-8.5% from 5.5-7.5%, citing rising external inflation and stronger fiscal stimulus.
The central bank indicated limited room for further rate cuts due to intensifying inflationary pressures and external risks.
Dangote Refinery IPO$1.55-1.8B
Nigeria's Dangote refinery is expected to launch an initial public offering (IPO) to raise between $1.55 billion and $1.8 billion.
The offering will involve selling 4.1 billion shares at a price range of 500 to 595 naira, with 525 naira currently under review.
The order opening date for the IPO is set for September 14.
Korea
Semiconductor Investment TalksUS Pressure
South Korea's presidential office confirmed ongoing investment negotiations with the United States, acknowledging the 'mutual influence of various issues' between the two nations.
US Commerce Secretary Lutnick's recent comments regarding semiconductor tariffs are reportedly impacting the tone and direction of these bilateral discussions.
While the presidential office stated that 'Korea-US security talks are not currently underway,' semiconductors remain a key agenda item.
Hormuz StraitMilitary Options
South Korea is reportedly reviewing military options to support free navigation in the Strait of Hormuz, though a final deployment decision has not been made.
Presidential office officials mentioned potential options such as maritime patrol aircraft, naval supply ships, and mine countermeasures units.
This consideration is seen as a move to manage risks within the Korea-US alliance and signal commitment to the United States.
July Current Account Balance+$42.08B
South Korea's provisional current account balance reached $42.08 billion in July.
This marks a 15% decrease from June's $49.73 billion.
The cumulative current account balance from January to July surged to $233.09 billion, approximately 3.9 times higher than the $59.82 billion recorded in the same period last year.
Chip Investment Discussions with USUnder Discussion
South Korea is engaged in discussions with the United States regarding chip investments.
These talks are taking place amid ongoing concerns about tariffs.
Hormuz Navigation OptionsReviewing Options
South Korea is reviewing various military and support options for navigation in the Strait of Hormuz.
An official stated that no final decision has been made on the specific course of action.
Latin America
Brazil's Income InequalityTop 1% at 13.1%
Brazil's top 1% income share hit a record 13.1% in 2024 tax data, contradicting President Lula's claims of improving inequality.
This widening gap in top-tier income concentration clashes with reported improvements in the Gini coefficient.
Expansionary fiscal policies, driven by government spending, are partly blamed for potentially causing high inflation, shifts in savings, and investment distortions.
Vale (VALE) Base Metals IPO PostponedIPO Postponed
Vale (VALE) has indefinitely postponed the initial public offering of its critical minerals unit, Vale Base Metals.
The decision, shifting from a mid-March preparation plan, reflects political opposition.
Concerns were raised by politicians about the potential for foreign ownership to dilute national control over strategic assets like rare earths and copper.
Argentina Sanctions on Falklands Oil FirmsSanctions Imposed
President Milei is pursuing sanctions against companies involved in Falkland Islands oil exploration, including Navitas Petroleum and Rockhopper.
This move aims to reinforce Argentina's sovereignty claims over the islands.
The policy is multi-layered, involving increased defense resources in the southern region and the submission of sovereignty protection bills to Congress, following remarks by former US President Trump.
Argentina Household Non-Performing Loans16-Year High
Argentina's household non-performing loans (NPLs) have reached their highest level in 16 years, according to the central bank.
This surge has led to increased calls for deregulation from the banking and fintech sectors.
Fintech loans have surpassed 10 million, exacerbating a vicious cycle where gig workers, like delivery riders, resort to high-interest app loans to quickly replace confiscated motorcycles.
The Milei administration views the NPL increase as a temporary side effect of credit expansion, potentially underestimating the structural issues.