European stocks gained traction as robust corporate earnings lifted investor sentiment, while European retail sales data awaited release. Meanwhile, copper prices plunged following unexpected tariff policy changes, Bitcoin slid amid ongoing economic and trade uncertainties, and the Australian dollar remains under pressure as the RBA signals further rate reductions.
European Stocks Supported by Strong Earnings and Retail Watch
European stocks rose 0.3%–0.4% on August 5, driven by better-than-expected results at firms like Diageo and DHL, and growing anticipation of a Federal Reserve rate cut in September. The STOXX 600 edged higher and most regional indices mirrored the uptick.
Investor focus now shifts to Eurozone retail sales, forecast to rebound by 0.4% in June, recovering from a –0.7% drop in May.
Copper Prices Crash as U.S. Tariff Strategy Shifts
U.S. copper futures collapsed nearly 20% after the Trump administration exempted refined copper (e.g., cathodes and scrap) from a planned 50% tariff, instead targeting semi-finished products like wires, sheets, and pipes.
This unexpected policy reversal ended a speculative trade that had caused massive imports and inventory buildup—now leaving traders with surplus stock and depressed prices.
Industry leaders warn the tariffs may bolster China’s dominance in copper refining, since the U.S. lacks sufficient smelting capacity to offset imports.
Bitcoin Slips Under Trade & Economic Uncertainty
Bitcoin drifted lower, falling 0.8% to around $113,467, tracking its near one-month low. Persisting macroeconomic headwinds and trade-related uncertainty dampened investor appetite for riskier assets.
Australian Dollar Set for Losses as RBA Forecasts Rate Cuts
The Australian dollar declined, retreating below key levels near 0.6465 USD, as markets priced in a high likelihood of a 25 bp rate cut by the RBA, expected to bring the cash rate down to 3.60% on August 12.
The RBA’s move reflects cooling inflation and weak labor data, and signals potential further rate easing in the months ahead.
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